5 Common Small Business Employee Benefit Myths

The employee benefit plan is a staple of large corporations. But as a small business owner, you may feel you have no good options. Traditional group insurance is not cost-effective for groups of fewer than 10 people. This leaves owners with smaller teams with poor coverage options for astronomical rates. When you care about your team, even if that's just you and one other person doing the jobs of 5 people, are you out of luck? Short answer, no. 

Let's break down some common misconceptions about health insurance for small business. 

Myth #1: You need a minimum number of employees to offer benefits

Many small business owners assume only big companies can offer their people great benefits. That's not true. Whether you're a business or 1 or 5000, there are great insurance options. However, when it comes to insurance, one size does not fit all. A plan specifically designed for small business will give you the benefits you want and include measures to keep your costs reasonable. Individual insurance plans can also be great options that offer flexibility for small or growing businesses, or businesses with a lot of contract, part-time, or freelance workers who would otherwise not qualify for a traditional group plan. These plans are tax-deductible too. 

Myth #2: There are no options for part-time or contract workers

Part-time and contract workers tend to get the shaft when it comes to traditional group insurance programs. Group insurance rules stipulate that very small plans must cover all full-time employees. Part-time employees generally don't qualify at all. There are options available that include all workers regardless of full or part-time status. These plans can be portable, which means workers have the option to carry a plan with them between contracts, or if they change jobs. Health Spending Accounts (HSA) can also help provide benefits to a diverse group of employees. But keep in mind an HSA is not a replacement for insurance. 

Myth #3: Employee benefit plans aren't affordable for small business

Insurance rates are determined based on claims made by plan members, the employees in a traditional group plan. Due to size, a small business is at much larger risk for steep rate increases when employees use their insurance. We know, it doesn't seem fair. The good news is options such as Health Plus PRIORITY and OPTIMUM plans offer excellent coverage and keep rates low. They also give owners flexibility on who to cover and how much to contribute to the cost. The risk of high claims is dispersed across all the businesses who are members of the plans. This keeps rates stable. If you do opt for a group plan, a dedicated small business advisor can also help you keep costs down with a plan design that will work for you and your team. 

Myth #4: The administration of employee benefit plans is a lot of work

This can be true. Traditional group insurance plans require a fair amount of paperwork and it's your responsibility to make sure your employees enrol. However, if you choose to go the non-traditional route, you can get quality benefits and leave the administration to the insurance experts. 

Myth #5: Health insurance isn't that important anymore because employees want new perks such as remote work

While it's definitely true that today's workers care about holistic benefits, not just a pay cheque and a dental plan, health insurance is still incredibly valued. In fact, 8 in 10 Canadians value health insurance above other insurance included in benefits packages. As well, some plans already come with or can be designed to include additional health and wellness benefits, such as an Employee Assistance Plan (EAP), your team will appreciate.

Your business is unique. What works for someone else might not work for you. The best way to figure out what's right for you is do your research, talk with your team, and work with a qualified small business advisor. On top of offering exclusive health plans you won't find anywhere else, Health Plus is a licensed broker and expert in small business benefits.  

When is the best time to buy health insurance?

If you’ve had health benefits through an employer in the past, you may never have had to think about buying health insurance. It’s just been there. But if you’re on your own for benefits now you may be wondering, is it really the right time to sign up?  

Here’s the reality: the best time to buy health insurance is as soon as possible. There is a common misunderstanding that insurance is something you don’t need while you’re healthy. If you have minimal health expenses now why pay for someone else to cover your health bills? The answer lies in risk and what health insurance is actually meant for.

What is health insurance for?

At its most basic, insurance is financial protection against the possibility of illness or injury. Your insurance plan is an agreement the insurer will pay a portion of both your current and, most importantly, future health expenses.   

What does health insurance cover?

The specifics of what’s covered under a health insurance plan depend on the plan itself. Generally, plans include some combination of coverage for prescription drugs, health (such as medical supplies), dental, and paramedical which refers to professional practitioners such as massage and physiotherapists. These are all services not included in provincial health coverage. Plans may also include vision, travel emergency health coverage, semi-private hospital, and some extras. Some of these covered expenses are for routine care and some are for unexpected emergent or ongoing expenses. 

See what's included in Health Plus PRIORITY and OPTIMUM plans here. 

What if I don't spend that much money now?

It’s natural to not want to spend money on insurance premiums if you don’t see an equal or greater return. But you’re missing part of the equation, the risk of developing health issues in the future, either acute or chronic. 44% of Canadians aged 20+ have at least one of ten common chronic conditions, a number that rises to 73% for those 65+. Do you have an adequate emergency fund to deal with ongoing health expenses in the event of illness or injury? 

Plus, some plans such as Health Plus PRIORITY and OPTIMUM come with extras you can use now. Like LifeWorks, which offers professional counselling, financial and health resources, and more. These plans offer both future protection and present-day value.  

Because health insurance rates are determined based on a presumption of risk, if you’re young and healthy, your rates will be lower. If you already have health issues, plans with ‘no medical questions’ do exist, but they have lower coverage limits and tend to cost more. The best time to sign up for health insurance is when you’re healthy. It’s the only time you’re guaranteed to have the best plan options for the lowest rates, and know you’re covered for whatever the future holds. 

The Surprising Benefits of Books in Your Winter Wellness Plan   

Whether you’re an outdoor enthusiast or cocoon-inclined, we’ve noticed that winter wellness plans often include time for a good read in a cozy spot.  That, as it turns out has way more health benefits than you might think.  Even if picking up the latest best-seller is not top of your relax list, you can benefit from books. Read on to see what we mean.   

First the Research 

Studies show reading boosts mental and physical health. By helping us escape from everyday concerns, books help reduce stress and the associated health risks. Apparently as little as 6 minutes a day or 30 minutes a week spent reading a book, newspaper or magazine slows heart rate and reduces muscle tensions. Research has also determined that reading improves memory, boosts creativity, aids sleep, helps ward off depression and dementia and significantly, it has been shown that people who read regularly live longer.   
 
Bookworms already know a good read does wonders for mindset and mood. Who knew it does so much more! And even if you’re not typically a reader, you can benefit just by hearing the ideas that emerge from books and become a topic of good conversation or often referred-to source of advice.  Here’s one example that recently caught our attention. It makes a thought-provoking and practical contribution to winter wellness, whether you actually read this book, or just consider an idea or two.    

4000 Weeks

This is the time on planet earth in an 80-year lifespan. Subtitled Time Management for Mortals, the book is not about the usual productivity hacks. Quite the opposite. First, the author says we can’t ‘manage’ time. It marches relentlessly on, no matter what, so we should give up trying. Frantically working to ‘get more done’ is a mistake because much of the time all those checklists and efficiency fixes simply help us cram more of the unimportant into our lives, while we postpone what’s really worth our time - in business and personally.     

4000 Weeks is about doing things differently. Here’s just one suggestion: Replace FOMO with JOMO. Instead of making choices based on fear of missing out, savour the JOY of missing out that comes with choosing what is really worth your time.  Say no to as much lower-ranking ‘stuff’ as possible (even though admittedly some of it might be pleasant) so you can focus time and energy on your top priorities and what you truly value. In this season of reflecting on 2021 and planning for the new year, it’s the perfect time for these words of wisdom.   

4000 Books & Counting

While of course most of us love a good story, there are health benefits from all kinds of reading.  Follow your bliss.  Books about hobbies and interests from art to gaming to zen gardens. Sports: tips for the amateur and stories of success. Think food: kitchen star, bar chef or really good at making reservations, the pictures alone often inspire healthy eating or remind us of happy times around the table. Think travel: reminiscing, planning future adventures or just an armchair trip, travel books help us “escape” for a time. War and Peace. Just kidding. Not that the classics aren’t worthwhile.  
 
The point is ... pick any topic you’ll enjoy. It’s the time spent in the escape, the delicious downtime of being fully absorbed in a story, a subject or the visuals, then enjoying the after-effect of the renewed energy to tackle your responsibilities and goals. A good read is good for your health!   

This Wellness Moment is from Health Plus Insurance. From our family to yours, take care.  If you’re a Health Plus plan member remember you have access to free professional Wellness Resources.  

Assurance maladie et fonds d'urgence

Pour commencer, nous croyons que tout le monde devrait avoir une assurance maladie. Nous sommes des assureurs, ce qui signifie que nous ne prenons pas de risques énormes, du moins dans ce domaine. Nous avons vu les tendances des dépenses en santé au fil des ans. Nous voulons que les gens soient protégés. Cela dit, vous devriez avoir les connaissances nécessaires pour prendre votre propre décision, alors nous allons vous préciser ce qu’il en est. Pouvez-vous vous « auto-assurer » avec votre propre fonds d’urgence pour soins de santé ou devriez-vous souscrire une assurance maladie?

Qu’est-ce qu’un fonds d’urgence?

Un fonds d’urgence est de l’argent mis de côté pour, comme vous l’avez deviné, des urgences ou des situations où vous avez besoin d’un accès rapide à de l’argent pour faire face à quelque chose d’inattendu, comme une perte d’emploi. Un fonds d’urgence pour soins de santé est destiné à des économies réservées spécifiquement aux urgences médicales, comme une maladie ou un accident grave. Ces économies peuvent être intégrées dans votre fonds d’urgence régulier ou séparément.

Pour quoi précisément économisez-vous?

Pour tout objectif d’épargne valable, il y a deux ou trois questions importantes auxquelles il faut répondre. Pour quoi économisez-vous? Et de combien avez-vous besoin? Nous passerons à la deuxième question dans une minute, mais d’abord, voyons ce pour quoi vous devez économiser. Les dépenses de santé courantes comme les examens dentaires annuels, les lentilles cornéennes ou les services professionnels occasionnels ne sont pas des urgences et peuvent être intégrées à votre budget régulier. Vous devez vous préparer aux coûts imprévus attribuables à une maladie ou à une blessure. Il peut s’agir de médicaments d’ordonnance coûteux, d’équipement médical, de soins de physiothérapie ou de soins infirmiers. Ces coûts pourraient également comprendre des dépenses connexes comme des congés pour vous rétablir, de l’aide non médicale dans votre entreprise ou votre foyer, ou des modifications à la maison.

How much do you need in your health emergency fund?

Dans un fonds d’urgence typique, les experts financiers conseillent d’économiser l’équivalent de trois à six mois de frais de subsistance. Si vous choisissez de ne pas avoir d’assurance, vous devriez envisager d’économiser de l’argent supplémentaire afin qu’en cas d’urgence, vous n’ayez pas à puiser dans l’argent réservé aux frais de subsistance courants. Cela est particulièrement important, car les urgences médicales ont souvent une incidence sur votre capacité de travailler. Mais quel est le bon montant à épargner? Il n’y a pas de réponse unique. L’accès de chacun à un soutien extérieur et le risque de développer une maladie chronique ou de subir une blessure grave sont différents. En partie en raison du biais d’optimisme, nous avons tendance à sous-estimer ce risque pour nous-mêmes. Il peut être utile d’examiner des chiffres réels. Le coût moyen des médicaments spécialisés au Canada est de près de 20 000 $ par année. Ces médicaments traitent des problèmes inflammatoires chroniques comme la polyarthrite rhumatoïde, la maladie de Crohn et le psoriasis grave, ainsi que des cancers et d’autres problèmes. Un Canadien sur cinq souffre d’un problème de santé mentale ou d’une maladie mentale au cours d’une année donnée. Compte tenu de l’écart entre les services de santé mentale et les soins de santé publics, les Canadiens dépensent environ 950 millions de dollars par année en psychologues.

Qu’est-ce que l’assurance maladie?

L’assurance maladie offre une protection contre les pertes financières possibles en payant une partie ou la totalité de vos frais médicaux. Les régimes provinciaux ne couvrent pas à eux seuls tous les soins de santé courants ou les coûts imprévus. L’assurance maladie privée pour laquelle vous payez des frais, habituellement mensuels, couvre de nombreuses dépenses de santé qui ne sont pas couvertes par l’assurance provinciale.

Bien que la couverture des frais médicaux courants soit bonne, le véritable avantage de l’assurance est la protection contre le risque de faire face à des dépenses importantes, imprévues et continues qui pourraient épuiser entièrement un fonds d’urgence typique. L’assurance invalidité est également importante à envisager. Elle remplace une partie de votre revenu si vous êtes incapable de travailler en raison d’une maladie ou d’une blessure.

Pourquoi devriez-vous avoir à la fois un fonds d’urgence et une assurance maladie?

Si les deux dernières années nous ont appris quelque chose, c’est que la vie est imprévisible. Un grave problème de santé peut faire disparaître très rapidement un fonds d’urgence typique. Même si vous pouvez bâtir un plus grand filet de sécurité grâce à vos propres économies, votre argent peut mieux fonctionner pour vous. L’assurance, y compris l’assurance maladie et l’assurance invalidité, fournit une dépense régulière, budgétisée et déductible d’impôt. Après avoir constitué un modeste fonds d’urgence, vous pouvez vous concentrer sur la croissance de votre argent en investissant ou en l’utilisant pour des projets personnels ou professionnels, sans culpabilité ni inquiétude. Même s’il est vrai qu’il y a toujours un risque que vous n’ayez pas besoin de toute votre assurance, cela signifie que vous aurez eu la chance de mener une vie saine. L’assurance et un fonds d’urgence procurent la tranquillité d’esprit. Les deux vous aident à bâtir un avenir financier sain et résilient.

How credit card insurance works

Have you ever wondered about credit card insurance? Financial expert Barry Choi of Money We Have explains how it works and what to look out for.

When used responsibly, credit cards can be a great tool to help you manage your money. While everyone knows you can use them to make interest free payments, what you may not realize is that many cards come with insurance policies that can be quite useful. 

Generally speaking, these types of insurance are broken into two types: travel and purchase insurance. Like any other insurance policy, you never hope to use it. However, if you do need to make a claim, you'll be glad to have it. Although the insurance policies are automatically included with your credit card, there's still specific criteria that needs to be met before it becomes valid. Additionally, what you're covered for isn't always clear, that's why you need to know how credit card insurance works. 

Types of travel insurance

Every insurance policy included with credit cards is different, so you always need to read the terms and conditions. That said, the following are the most common types of insurance policies included. It's worth noting that not every credit card includes all of the insurance policies: 

Travel medical insurance 

Travel medical insurance is arguably the most important type of travel insurance. As the name implies, it'll cover you if you need to seek medical attention whenever you leave the province where you reside. What many people don't realize is that the cost of health care can be extremely high in some countries, but if you have travel medical insurance, you should be covered. 

It's worth noting that most credit card travel insurance policies require you to contact them before you seek medical attention (if possible). They'll then open up a claim and direct you to the nearest clinic or hospital. 

Premium travel insurance

Premium travel insurance covers travel claims that aren't medical related. Things such as trip cancellation, trip interruption, delayed baggage, hotel/motel burglary, and rental car insurance would all fall under premium travel insurance. 

Many of the best travel credit cards in Canada including the American Express Platinum Card come with both travel medical and premium travel insurance. That said, you do need to read your policy details as not every type of premium travel insurance may be included. there are also maximum limits for each type of insurance to be aware of when making a claim. 

Mobile device insurance

In recent years, mobile device insurance has become more popular with credit card providers. If you have the insurance, your mobile devices which include mobile phones and tablets are insured. In most cased, there's a cap of $100 - $1500 in insurance coverage. There's also depreciation and a deductible to factor in when making a claim. That may annoy some people, but it's a handy insurance policy to have if you every need to make a claim. 

Purchase protection

Many credit cards include purchase protection, but not many people make claims. With this insurance, your purchases are usually protected from theft, loss and damage for 90 days from your purchase date. 

Extended warranty 

Extended warranty policies are another form of insurance that can be incredibly handy. Under this policy, your manufacturer's warranty is usually doubled up to one additional year. For example, if your purchases have a one year warranty policy, it gets doubled if you have extended warranty through your credit card. If you have to make a claim between years 1 and 2, you would make it through your credit card provider.  

How to ensure your credit card insurance is valid

As mentioned, you really need to pay attention to the details of your credit card insurance policies. With travel medical insurance, you're covered no matter what, but with all the other insurance policies you usually need to charge the full amount of your purchases to your card with the insurance for it to be valid. 

Pay special attention to your premium travel insurance details. For example, some policies say you need to charge the full amount of your travel purchases to your card for the insurance to be valid, while other cards might say 75%. If you're using points to offset your costs, your insurance policy may no longer be valid since you're not paying the full amount. 

With purchase insurance policies, you need to make sure you hang onto the receipts of your purchases. Additionally, you'll need to provide the statement when the purchase was made if you need to make a claim. Without both items, your insurance claim will likely be denied. 

When it comes to mobile device insurance., you need to pay for the entire device with your credit card. If you're getting your hardware subsidized, then you need to pay your monthly bills with your credit card with the mobile device insurance. 

Is credit card insurance worth it?

Having insurance is never a bad thing, you just need to make sure you understand the policy details. There's absolutely no reason why you shouldn't make a claim if you have the insurance. 

That said, the devil really is in the details. For example, credit card travel medical insurance for seniors typically only last 3 days. That's obviously not enough for most people, so you'd be better off buying a separate policy that provides you enough coverage for your needs

About the author

Barry Choi is an award-winning consumer and travel expert. his specialty is making tough financial topics easy to understand. You can read more of his articles at moneywehave.com