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.  

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 

At Health Plus our goal is to provide the best health and dental plans to small business owners and freelancers. That means continually looking for ways to offer more coverage and working to keep  rates low. We know the past two years have brought a whole new range of challenges for all Canadians, particularly small businesses. Your insurance plans should help you lead a healthy life through the ups and downs. 

Current News ... 

We're happy to announce that effective December 1st, 2021, we've increased the Vision maximum (OPTIMUM plan) for eye exams from $50 to $75 every 2 years. We've also added coverage in both our PRIORITY and OPTIMUM plans for Intrauterine Devices (IUDs) as a form of contraception. This change was prompted by a client request and brings coverage in line with the health needs of Canadians. 

Keeping Your Rates Low ...

We are extremely proud that, as other insurance companies have increased rates, we have kept our plan rates the same. In fact, we have never raised our rates, something no other insurer can say. We also continue to offer the same low pricing at all ages. 

A Look Back ... 

As we mentioned, making the plan better for our members has always been important to us. Updates in the last few years include adding an Employee Assistance Plan (EAP), coverage for Major Restorative Dental, increasing dental coverage maximums, extending travel emergency health coverage and lowering rates for single parents. 

Wellness is Always a Priority ...

Health is more than just visits to the dentist. It's also about your mental health, emotional wellbeing, and financial wellness. We are committed to making wellness a part of our everyday lives. That's why we include free wellness benefits for our plan members and offer regular Wellness Moments on our blog and social media. And, wellness stays top of mind as we continue to build our plans. 

Health Insurance vs. Emergency Funds

Just to put it out there at the outset, we believe everyone should have health insurance. We're insurers, which means we're not huge risk takers, at least in this area. We've seen the trends in health spending over the years. We want people to be protected. That said, you should have the knowledge to make your own decision. So we'll break it down for you. Can you "self-insure" with your own medical emergency fund or should you sign up for health insurance?

What is an emergency fund?

An emergency fund is money set aside for, you guessed it, emergencies or situations when you need quick access to money to deal with something unexpected, such as job loss. A medical emergency fund is savings specifically reserved for medical emergencies, such as illness or a serious accident. These savings can be integrated into your regular emergency fund or separate. 

What specifically are you saving for?

With any good savings goal there are a couple of important questions to answer. What are you saving for? And how much do you need? We'll get to the second question in a minute but first, let's consider what you actually need to save for. Routine health expenses such as annual dental exams, contact lenses, or occasional professional therapy are not emergencies and can be built into your regular budget. Unexpected costs due to illness or injury are what you should prepare for. They may include ongoing expensive prescription medication costs, medical equipment, extensive physiotherapy or nursing care. These costs could also include related expenses such as time off work to recover, non-medical assistance in your business or household, or home modifications. 

How much do you need in your health emergency fund?

In a typical emergency fund, financial experts advise saving between 3-6 months living expenses. If you choose to go without any insurance, you should consider having additional money saved so that in the event of an emergency, you don't have to dip into money earmarked for routine living expenses. This is particularly important as medical emergencies often impact your ability to work. But how much is the right amount to save? There is no one answer; everyone's access to outside support and risk of developing chronic illness or sustaining a serious injury are different. In part due to the optimism bias, we tend to underestimate this risk for ourselves. Looking at some actual numbers can help. The average cost of specialty drugs in Canada is almost $20 000 / year. These drugs treat chronic inflammatory conditions such as rheumatoid arthritis, Crohn’s disease, and severe psoriasis, as well as cancers and other conditions. 1 in 5 Canadians experience a mental health problem or illness in any given year. With a gap in mental health services in public healthcare, Canadians spend an estimate of $950 million per year on psychologists.

What is health insurance?

Health insurance provides protection against the possibility of financial loss by paying for some or all of your medical bills. Provincial plans alone do not cover all routine healthcare or unexpected costs. Private health insurance for which you pay a fee, usually monthly, provides coverage for many health expenses not covered by provincial insurance. 

While coverage for routine medical expenses is good, the true benefit of insurance is protection against the risk of facing large, unexpected, ongoing expenses that could entirely drain a typical emergency fund. Disability insurance is also important to consider. It replaces some of your income should you become unable to work due to illness or injury. 

Why you should have both an emergency fund and health insurance

If the past two years have taught us anything it's that life is unpredictable. A serious health issue can wipe out a typical emergency fund quite quickly. While you can build up a larger safety net, through your own savings, your money can work better for you. Insurance, including health and disability provides a regular, budget-able, tax-deductible expense. After building up a modest emergency fund, you can focus on growing your money through investing, or using it for personal or professional projects, guilt and worry free. While it's true there's always a risk you won't "need" all your insurance, that means you'll have been lucky enough to lead a healthy life. Both insurance and an emergency fund provide peace of mind. Both help you build a healthy, resilient financial future.