Three Lesser Known Coverage Types In Group Benefits Plans

If your employer offers benefits, they may be called “group benefits,” which are basically a packaged group of benefits that cover many of the employee’s medical and disability needs. A group benefit package will extend well beyond the basic medical benefits that all permanent Canadian citizens are eligible for. Your employer may cover the full cost of your group benefits, or you may contribute to part of that cost. Keep reading to learn about three of the very vital—but lesser known—types of coverage that the typical group benefits plans from Booth Scott Ltd may offer.

Life Insurance

Life insurance is often included in group benefits. This coverage will pay the specified amount (every policy differs in amount) to your designated beneficiaries upon your death.

This life insurance policy may contain an “Accidental Death and Dismemberment” clause. This coverage will pay a higher amount (the policy maximum) to your beneficiaries if your death occurs due to a violent accident. It will also pay benefits directly to you if you lose a major body part like an arm or leg (or the use of a major body part, like an eye) in an accident.

Short Term Disability

Short term disability plans are created to cover necessary time off for employees who are injured. Short term disability will partially replace lost income and will begin once you have exhausted any sick leave you may have.

This disability will replace a set percentage (for example 70 percent) of your income for the period of time specified by the policy. This time period may be anything from 15 weeks up to a full year (52 weeks) depending on the policy.

Long Term Disability

Long term disability will begin when your short term disability is exhausted if you are still unable to return to work. Long term disability, like short term disability, will replace a specific percentage of your income (60 to 70 percent is common).

This type of disability coverage does have a monthly maximum. Thus, if you have a high income it is possible that you’ll receive a lesser percentage of your income in disability compensation because you have hit the monthly max.

Long term disability has a time limit, which can vary by policy but may be around two years. If you are still disabled after two years (or whatever the maximum for your policy is) you will need to prove that you are unable to work at any job, not only the job you most recently worked at.

If your employer offers group benefits plans, you will usually find it to your advantage to participate in them. This extra coverage may be fairly inexpensive, and it will give you a safety net in case you are ever injured, or even disabled, while at work. Talk to your employer about possible group benefits participation as soon as possible to get this protection in place!

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