|
|
|
|
|
|
A month to show your love
| |
|
|
| Greetings! |
I would like to send out a Happy Valentine's Day to you and your loved ones. One of life's greatest joys is being in love and being loved.
Although I feel that each holiday we celebrate might focus more on the superficial marketing of an overpriced gift to show that special someone just how much they mean to you by how much their gift was worth---this is unfortunate!
The very idea of Valentine's and sharing your love on this one very special day is also a bit unfortunate...I'd rather hear "I Love You" whether it be from a spouse, child or parent every day of the year, why do we have to have one special day to recognize how much we love and appreciate each other...
This month's newsletter is focusing on many of the important day to day administration questions our frontline staff handle. The administration of your health benefits can often feel overwhelming and frustrating. I believe knowledge is power and an informed plan administrator and/or company owner is crucial.
I take great pride in explaining the rationale behind many of the insurance carriers processes and procedures.
I hope you find helpful tips and links this month.
Should you have any feedback on how we are doing with the newsletters please forward them to info@gbsinsurancesolutions.com, we would love to hear from you with future article suggestions.
Have a great day!
Amber Hanlon |
| Your health is one of your biggest assets... |
 Though you may not think of it this way, becoming seriously ill is a life-altering event, financially as well as physically and emotionally.
You'll be off work, probably collecting disability pay that covers only part of your normal income.
Imagine the impact of other costs that can negatively affect your financial health if you aren't prepared for them.
Major illnesses are costly
To pay for the many things that aren't covered by government or employer health plans, you essentially have 3 options.
You can:
Withdraw from your retirement nest egg...
Borrow the money you need ...
Create a recovery plan ...
Withdraw?
It took sacrifice and self-discipline to build equity and create a nest egg. Certainly you don't want to sell assets like a home, car or family heirloom to finance a recovery from illness. And if you were to withdraw funds from your retirement savings, you'd face tax implications and run the risk of drastically reducing the amount of money you'd have at retirement.
Do you understand how much of a difference a withdrawal can have on the amount available for your retirement?
Borrow?
Borrowing money means you could be looking at a loan amount that's the equivalent of taking on another mortgage. The monthly payment could force you to change your current lifestyle, and prevent you from saving for future dreams and goals.
Create a recovery plan
Critical illness insurance will help you meet the financial needs associated with recovery from a life-altering illness. It differs from life insurance, which supports your survivors after you're gone, or disability insurance, which replaces a portion of your income if you're unable to work.
If you're diagnosed with one of the covered illnesses and survive the waiting period stipulated in the policy, critical illness insurance provides you with a cash payment that can be used any way you choose.
This insurance payment allows your retirement savings plan to continue on as you planned. Your retirement fund will be there for your retirement.
Sit down and really think about it
Are your plans for retirement as solid as you'd like?
Do you have a recovery plan to protect your savings as you save?
A recovery plan helps protect your retirement savings, and keeps you in control. It's all about spending your money exactly how you want, when you want.
| |
 |
|
A Message from the President |
|
Well 2010 is now in full swing. I have been busy planning the year and how I will spend my days. I have discovered that action and time are the two ingredients of life and success.
Something most push aside and don't like to talk about is how finite our time here is. We are only given a limited amount of days to enjoy this journey. For some sadly the journey is much shorter than it should be. We can't control everything in our lives but something we can have an affect on is our health.
Stress is the most reported health concern of this millennia to date. Stress leads to a large number of health issues that in the end can bring about the end much too soon. There are many lessons to be learned from our seniors. Many of our century old survivors share the same belief system...
a motto you hear and see everywhere
Our desire to succeed often take us away from
Living, Laughing, and Loving...
Our seniors had the ability to live in the moment and enjoy the journey.
To spend a century here. That's a good amount of time before moving on to our next work. Stress is all related to thought. Thoughts do become things and with that in mind here is what I would suggest. Think your way to a longer life.
Enjoy this day stress free!
Sincerely,
Frank Hanlon | |
|
| Salary Updates |
|
Now that T4's are all done, it's a good time to send updated earnings reports to your insurance provider(s). Salary based benefits such as Life, AD&D, Short-Term and Long-Term Disability rely on this information to provide proper coverage. If there is a discrepancy between what was reported to the insurance company and actual earnings, the insurance company is under no obligation to pay out the difference. Therefore it is imperative that plan administrators keep records current. Failing to due so may open the company up to litigation. |
| Important Administration Reminders |
 In this section we will explore the many issues our staff encounter and how keeping accurate employee records can and will protect you, your staff and your company.
Waiver of Premium
Almost all contracts include a waiver of premium (WOP) feature on the life insurance benefit. Some contracts include WOP on other benefits as well but rarely, if ever, on health or dental benefits. Check your contract to see what benefits include a WOP feature. The WOP feature allows the benefit to remain in force without the associated premium for plan members who are disabled. This feature applies even if your plan does not include long-term disability (LTD) benefits. If your plan does include LTD benefits and the LTD benefits are provided by the same insurance carrier as your other benefits, the WOP is automatically applied with the approval of the LTD benefits. However, if your LTD coverage is with a different insurance company or your plan does not provide LTD coverage, a separate application for the WOP benefit must be submitted. If you have LTD coverage with a second provider, the other insurance company evaluating the WOP will typically accept a copy of the application for LTD benefits from the LTD carrier and/or the explanation of benefits showing benefits were approved. Requirements for the WOP vary by carrier so it's always best to check with your GBS-Account Manger and/or your plan representative.
If your plan does not include LTD, an application for WOP must be submitted to the insurance company. Your GBS account manager can get you the appropriate forms.
Notice Period & Severance Packages
When you terminate an employee you must, by law, continue the compensation package for a period of time. This time period is broken into two separate and distinct periods. The first is the notice period. The length of the notice period varies by provincial legislation and length of the employee's service. For example in Ontario, an employee who has been with the company for 5 years is entitled to 5 weeks notice or 5 weeks pay in lieu of notice. Benefits must be continued during this time. However, not all insurance companies will continue all benefits during the notice period - in particular the LTD benefits. The second period is the severance period. There are no set guidelines for the length of this period. It will depend on various factors such as the position of the terminated employee and the availability of a similar position in the region. Benefit coverage during this period must be approved by the insurance company and almost never includes LTD or travel coverage. There are also restrictions as to how long the insurance company will extend benefits. Before making a termination offer to your employee always check with your insurance company to see if it will provide coverage for the period you want to offer and if there are any restrictions.
New Applicants and Changes to Existing Employee Coverage
30 days, 30 days, 30 days. This is the length of time you have to submit new enrolments or make changes to the coverage for an existing plan member. Failing to submit the required forms to the insurance company within 30 days will result in the plan member and/or his/her family members being treated as a late applicant. A late applicant is required to submit a brief medical questionnaire. If there are medical issues that come to light on that form, the insurance company can limit coverage or decline coverage altogether. Dental coverage for late applicants is always limited for the first 12 months of being on the plan. It is very important that all applications and changes are submitted in the 30 day period because the late applicant restrictions may prove to be severe.
Spousal Coverage
If an employee is covered for benefits through their spouse's plan, they do have the option to waive their coverage. However, they can only waive the health and/or dental benefits. The employee must still be enrolled for all other benefits. The employee may resist coverage but there are a variety of reasons why they must be enrolled:
1. Most contracts require mandatory participation;
2. Failing to enrol eligible employees may lead to costly litigation from employees who fall ill and/or his/her family members if he/she passes away.
3. If the spouse loses coverage, your employee will want to join the plan. The employee and all his/her dependents will be considered late applicants and may have coverage declined. If you ever encounter a situation where you are not sure how the benefit plan will be affected or even if it will be affected, call us. We are here to answer your questions. It is always easier to plan ahead than to work yourself out of a jam - but we're here for that too! |
Compassionate Care - What to do when a family member becomes ill. |
Many workers struggle to maintain a healthy work-life balance. The scales generally tend to tip in favour of work more often than family but when a family member becomes gravely ill, family life take precedence. Demands at work do not change but worker focus does forcing the worker to make difficult decisions about how to prioritize their time. For some, this may mean temporarily leaving work to provide care for the ill family member. The Employment Standards Acts (ESA) of the various jurisdictions provides job protection to workers who find themselves in such a situation. The Compassionate Care Leave fundamentals under all the ESA's are the same but each program has its own unique nuances. Compassionate Care Leave allows workers to take up to eight weeks of unpaid job protected leave when a family member is at risk of dying within 26 weeks. To qualify for a leave, a worker must provide a medical certificate stating that the ill family member is at risk of dying within 26 weeks.
The definition of "family member" varies by jurisdiction but generally includes those in your immediate family - parent, spouse, child, grandparent, etc. Family members residing outside of Canada qualify under all definitions. Check with Service Canada for more details.
The eight week leave does not need to be consecutive. Workers may break it up into shorter periods as they feel is needed and they can share it among other family members. In most jurisdictions, benefits and seniority continue as if the worker was actively at work.
Employers must continue paying their share of the premium unless the employee gives written notice that he/she does not intend to pay his/her contributions, if any. Only then can the employer terminate benefits. In addition to job-protected leave provided by the ESA's of each jurisdiction, the Federal government provides financial assistance to workers on a Compassionate Care Leave through the Employment Insurance (EI) program. To qualify for Compassionate Care benefits through EI, you must show a 40% reduction in earnings and have accumulated 600 insured hours in the last 52 weeks or from the start of the last EI claim. The program pays 55% of the average insured earnings up to a maximum of $447 per week.
Benefits are payable after a two week waiting period and are payable for a maximum of six weeks. The six week payment period may be split up over the 26-week period. It can also be shared with other family members. If the benefit is shared, only the first family member to collect benefits has to serve the two week waiting period. There are some exceptions to this rule. Check with Service Canada for specific details. Compassionate Care benefits can also be combined with other EI benefits such as maternity, parental, sickness or regular benefits. Consult Service Canada for more details. | |
|
|
"QUOTE OF THE MONTH"
"For every beauty there is an eye somewhere to see it. For every truth there is an ear somewhere to hear it. For every love there is a heart somewhere to receive it. " - Ivan Panin
All the staff at GBS-Group Benefit Solutions Inc would like to wish you and your family much joy this Valentine's Day and much more joy that is spent with your loved ones on Monday, February 15th (Family Day)...Enjoy yours!
Employee Benefits * Group Retirement Plans * Pensions Plans * Life Insurance * Living Benefits * Corporate Buy-Sell Funding Arrangements
Disclaimer: The information provided in this newsletter is for general information only. Advice of a specialist should be sought for your specific circumstances. |
|
|
|
|
|
