Suppose you’re a benefits consultant who advises clients on purchasing employee benefits and insurance. In that case, we would provide those customers with the following definitions to allow them to understand the insurance industry’s jargon! Group insurance is insurance coverage for many people under one contract. Group insurance needs more clarity for employers considering employer benefits on the first occasion.
Here is a brief overview of the various types of group insurance coverage that can get used to safeguard an organization’s employees and their family members.
Extended Health Care (EHC)
Extended Health Care (EHC) is usually one of the things that pop into the mind when you think about group insurance. It is the most well-known aspect of group insurance options. Every company with employee insurance must have at least some Extended Health Care insurance.
Prescription Drug Insurance
- Ensures the total or partial cost of prescription drugs prescribed to patients
Paramedical Coverage
Ordinary medical expenses that get covered by insurance include:
- Acupuncturist
- Audiologist
- Chiropractor
- Chiropodist/Podiatrist
- Dietician
- Naturopath
- Occupational Therapist
- Physiotherapist
- Psychologist/Psychotherapy/Social Worker
- Registered Massage Therapist
- Speech Pathologist
Vision Insurance
Vision insurance can pay for the total or partial expense of such things as:
- Eye exams
- Contact lenses and prescription eyeglasses
- Corrective laser eye surgery
Travel Insurance
In the event of medical emergencies while an employee is out of the home province. The coverage varies but may include the following:
- Medical and paramedical costs
- Trip cancellation
- Repatriation
- Flight accident
- Up to 60 days
Medical Care Costs
Extended Health Insurance covers the expenses of hospital-related medical treatment and costs, like:
- Equipment and medical supplies
- Accidental dental
- Ambulance
- Semi-private hospital
- Diagnostic services
- Private duty nursing
- Home care
- Hearing aids
Dental Insurance
Alongside Dental is a type of group health insurance that all companies provide employee insurance. In many companies, insurance usually has the highest utilization rates.
Dental plans can include the following:
- Annual checkups
- Cleaning and polishing teeth
- Primary services include crowns, periodontics, onlays, and bridges
- Orthodontics
- Denture and dental services
Life Insurance
Life insurance offers peace of mind to your employees as it provides financial aid to their loved family members when they experience their death. Although many applicants and employees are now expecting Extended Health Care and Dental coverage as part of their benefits packages, Life insurance can demonstrate that the company is concerned about its employee’s and families’ health and can help attract and keep top talent to your company.
Accidental Death & Dismemberment
Another type of group insurance that employers could face is Accidental Death and Dismemberment (AD&D). AD&D offers employees and their beneficiaries additional financial assistance in the situation of:
- Death caused by accident
- Hearing loss, sight loss, or speech
- A limb that gets dismembered accidentally can lose a portion or the entire leg
AD&D is different from Life Insurance in that Life Insurance provides coverage for death due to accidental and natural causes. At the same time, AD&D protects against death due to accidents and severe leg injuries.
Disability Insurance
Short-Term Disability (STD) Insurance and Long-Term Disability (LTD) insurance will protect your employees if they become disabled. It could be due to prolonged sickness, mental health issues, and injuries.
Short-Term Disability, as the name suggests, covers a part of an employee’s earnings for a limited period, typically between 15 to 26 weeks, during which they cannot work.
Long-Term Disability is more extended periods when a disability lasts longer than 16 weeks.
Disability insurance gets designed to compensate for the lost income of disabled employees. It is paid to members of the plan regularly, e.g., weekly, bi-weekly, etc.
Critical Illness Insurance
Critical Illness pays one lump sum non-taxable amount when there is a life-threatening illness like cancer, stroke, cancer, or heart attack. The money can get used to paying for the following:
- Experimental drugs
- Treatment outside of the province
- Alternative treatment
- Home care or nursing
Benefits advisors can work with you to identify which ailments your company wants to get covered under your company’s insurance program.
Health Spending Accounts (HSAs)
Health Spending Accounts (HSAs) are worthy of mention in this article since they are a great alternative. While not a type of group insurance, HSAs are a form of group insurance. HSA could be a unique alternative or a supplement to an existing coverage plan for group insurance.
HSAs can get financed by employers and permit employees to receive reimbursement for various health-related costs. HSAs can be beneficial in certain situations because they offer greater flexibility in their use than insurance coverage.
Group Insurance with Ottawa Life Insurance
Ottawa Life Insurance is here to assist you with insurance coverage’s personal and business requirements. Contact Ottawa Life Insurance today at (613) 454-1424 or email us at info@ottawa-lifeinsurance.ca to learn more.
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