Group benefits insurance provides health, dental, life, and disability coverage to a group of employees under a single plan. The employer sets up the plan, selects the coverage options, and typically shares the premium cost with employees. Employees and their eligible dependants are covered under the group plan.

Group plans are generally not medically underwritten for individual employees — everyone in the group is covered regardless of health history, subject to minimum participation requirements and any late applicant provisions. This is one of the most significant advantages of group coverage: an employee with a pre-existing condition who might face exclusions or higher premiums in the individual market is covered on the same terms as everyone else.

For employers, a group benefits plan is one of the most valued employee perks available. According to the Canadian Life and Health Insurance Association (CLHIA), group benefits are consistently ranked among the top factors employees consider when evaluating a job offer — often ahead of salary increases. For small businesses competing for talent against larger employers, a well-designed group plan can be a meaningful differentiator.

Group benefits are regulated under the Insurance Act (Ontario) and equivalent provincial legislation. Oracle RMS Insurance London North operates through A Bajaj Financial Services Inc., FSRA Licence No. 41867M, and is authorized to place group benefits with multiple Canadian carriers.

Many Canadian insurers offer group benefits plans for businesses with as few as two employees. Some insurers have specific small-group products designed for 2 to 10 employees, with simplified underwriting and administration. The minimum group size, participation requirements, and available coverage options vary by insurer.

For very small groups (2 to 5 employees), some insurers may require a minimum participation rate — for example, 75% of eligible employees must enrol — to ensure the group is not composed entirely of high-risk individuals. Some small-group products use a simplified medical questionnaire rather than full underwriting.

For groups of 10 or more employees, a broader range of plan designs and insurers becomes available, and the pricing is typically more competitive because the risk is spread across a larger group.

Business owners can generally include themselves and their families in the group plan, subject to the insurer's requirements. For incorporated business owners, a group plan can be a tax-efficient way to provide health and dental coverage for the owner and their family.

Group benefits plan costs depend on the number of employees, the coverage selected, the age and claims history of the group, and the insurer. Employers typically pay a portion of the premium — often 50 to 100% — with employees paying the remainder through payroll deduction.

For a small business with 5 employees, a basic group plan covering extended health care and dental might cost a few hundred dollars per month in total premiums, split between the employer and employees. A more comprehensive plan with higher dental maximums, life insurance, and long-term disability will cost more.

Group benefits are generally more cost-effective per person than individual health and dental insurance because the risk is spread across the group and administrative costs are shared. For employers, the premium cost is also a deductible business expense, which reduces the after-tax cost of providing benefits.

Pricing varies significantly between insurers for the same group profile. As an independent broker, Oracle RMS Insurance London North compares options from multiple carriers to find the most competitive pricing for your group.

Yes — business owners can generally include themselves and their families in a group benefits plan, subject to the insurer's requirements. For very small groups (2 to 3 employees), the insurer may require that the owner is a bona fide employee of the business — meaning they receive a regular salary and are on the payroll, not just a shareholder drawing dividends.

For incorporated business owners, a group benefits plan can be a highly tax-efficient way to provide health and dental coverage. Employer-paid group benefits premiums are generally a deductible business expense, and most employer-paid group benefits are received tax-free by employees (including owner-employees). This makes group benefits more tax-efficient than equivalent salary increases.

For very small incorporated businesses (one or two people), some advisors recommend a combination of a group plan and a Health Spending Account (HSA) to maximize tax efficiency. The group plan covers predictable recurring expenses; the HSA covers expenses that fall outside the plan or below the deductible.

Group benefits and individual health insurance serve the same fundamental purpose — covering health and dental expenses not covered by provincial health plans — but they differ in important ways.

Group benefits are provided through an employer and cover a group of employees under a single plan. They are generally not medically underwritten (everyone in the group is covered regardless of health history), and premiums are often shared between employer and employee. Coverage is typically more comprehensive and cost-effective than individual plans for the same premium dollar.

Individual health insurance is purchased directly by an individual or family. It is medically underwritten — your health history may affect eligibility, premiums, or coverage. Individual plans are portable (they stay with you regardless of employment) and can be customized to your needs, but they are generally more expensive per dollar of coverage than group plans.

The key limitation of group benefits is portability: if an employee leaves the company, group coverage ends. Most group plans include a conversion option that allows the departing employee to convert to an individual plan without medical underwriting, provided they apply within a specified timeframe (usually 31 to 60 days).

An Employee Assistance Program (EAP) provides employees and their families with confidential access to short-term counselling, mental health support, financial advice, legal assistance, and other support services — typically at no cost to the employee at the point of use. EAPs are funded by the employer as part of the group benefits plan.

Mental health has become one of the leading causes of short-term and long-term disability claims in Canada. The Centre for Addiction and Mental Health (CAMH) reports that mental illness costs the Canadian economy over $50 billion per year in lost productivity, healthcare costs, and disability. EAPs provide early intervention — helping employees address mental health, financial stress, or personal issues before they escalate to a disability claim.

Many group benefits plans include an EAP as a standard feature; others offer it as an optional add-on. EAP services are typically delivered through a third-party provider and include a set number of counselling sessions per issue per year (often 6 to 8 sessions).

Traditional group benefits plans offer a standard set of coverage for all employees — everyone gets the same plan. This is simple to administer but may not meet the diverse needs of a workforce. A 28-year-old single employee and a 45-year-old employee with a family have very different benefit needs.

Flexible (or flex) benefits plans address this by allowing employees to choose from a menu of coverage options within a set employer-funded budget. Employees can allocate their benefit dollars toward the coverage that matters most to them — higher dental maximums, additional life insurance, or a health spending account for out-of-pocket expenses.

Modular plans are a middle ground — the employer offers two or three pre-designed plan options (for example, basic, standard, and enhanced), and employees choose the tier that best fits their needs, paying the difference in premium for higher tiers.

Flex plans are more complex to administer and are more common in larger groups (typically 20+ employees). For small groups, a well-designed traditional plan with a Health Spending Account component can provide meaningful flexibility at lower administrative cost.

When an employee leaves the company — whether through resignation, termination, or retirement — their group benefits coverage typically ends on the last day of employment or the last day of the month in which employment ends, depending on the plan.

Most group plans include a conversion option that allows the departing employee to convert their group coverage to an individual plan without medical underwriting, provided they apply within a specified timeframe — typically 31 to 60 days of losing group coverage. This is particularly valuable for employees with pre-existing conditions who might face exclusions or higher premiums in the individual market.

Employers have an obligation to inform departing employees of their conversion rights and the applicable deadline. Failure to do so can expose the employer to liability if the employee suffers a loss during the period when they could have converted.

For employees who are retiring, some group plans offer a retiree benefits option — though this is more common in larger organizations and public sector plans than in small business group plans.

Employer-paid group benefits premiums are generally a deductible business expense in Canada under the Income Tax Act (Canada). This means the cost of providing group benefits reduces the employer's taxable income — effectively reducing the after-tax cost of the benefit.

For employees, most employer-paid group benefits are received tax-free. Extended health care, dental, and vision benefits paid by the employer are generally not considered a taxable employment benefit. Group life insurance premiums paid by the employer above a certain threshold may be a taxable benefit to the employee. Long-term disability benefits are taxable to the employee if the employer paid the premiums.

For incorporated business owners who are also employees of their corporation, group benefits can be a highly tax-efficient form of compensation — the corporation deducts the premium as a business expense, and the owner-employee receives the benefit tax-free.

Yes. Oracle RMS Insurance London North operates through A Bajaj Financial Services Inc., which holds FSRA Insurance Act Licence No. 41867M in Ontario. FSRA (the Financial Services Regulatory Authority of Ontario) is the provincial regulator responsible for licensing insurance brokers and agents under the Insurance Act (Ontario). Our licence authorizes us to place life and accident and sickness insurance products — including group benefits — with multiple Canadian carriers.

As an independent broker, we compare group benefits options from multiple insurers — including Manulife, Sun Life, Canada Life, iA Financial Group, Blue Cross, and others — to find the plan that best fits your business size, budget, and employee needs. We are not tied to any single insurer.