Types of Coverage

• Basic Life Insurance – Provides a lump-sum cash benefit upon the death of an employee and is payable to a beneficiary of the employee’s choosing. The amount of insurance can be a flat rate or can be tied to earnings. Ex 150% of base salary.
• Dependent Life Insurance – provides a lump-sum cash benefit up on the death of a spouse or child. This benefit is payable to the employee and is intended to help with the financial aspects of dealing with the death of a family member (ex. Funeral expenses, counseling, etc)
• Accidental Death and Dismemberment – this is usually tied to the basic life insurance benefit. Should an employee’s death be due to an accident, the beneficiary of the basic life insurance will receive an additional amount. Should an employee experience a dismemberment (ex loss of or loss of use of an arm) an amount is payable to the employee to help with the financial and psychological hardships that may be associated with the loss.
• Optional Life and Spousal Optional Life – this benefit is usually 100% employee funded and requires employees to provide medical evidence of insurability. It affords the employee and their spouse to top up their basic life amounts if they choose. Not all employees have to participate in this benefit.
• Short-Term Disability (STD) – Also known as Weekly Indemnity (WI), this is a wage-loss replacement program for employees who need to be away from work due to an injury or illness. The benefit is typically based on a percentage of earnings and is usually payable for 15 weeks.
• Long-Term Disability (LTD) – LTD is a wage loss replacement program that covers absences due to illness or injury for an extended period of time. It can be co-ordinated an integrated with STD and government sponsored plans such as EI, C/QPP and Workers Compensation.
• Critical Illness (CI) – A lump-sum benefit is paid out to the employee upon the diagnosis of a specified illness. This “living benefit” is intended to help with the financial burdens incurred when faced with a critical illness.
• Health Care – Provincial plans provide basic coverage to all residents but this coverage can fall short. Private health insurance plans, such as those provided by an employer, can top-up the provincial coverage. Health and drug coverage is probably the most valued benefits an employer can provide.
• Dental Care – There are three basic levels of dental coverage available: basic & preventative, major restorative, and orthodontics. Each level can be reimbursed with various plan maximums and co-insurance levels.