Group benefits are insurance plans that an employer arranges for its employees, such as extended health, dental, drug, vision, life, accidental death and dismemberment, and disability cover. They are usually bought as a package for everyone in the company.
For employees
Group plans are often the first cover people have, and can be valuable. They also have limits: the amounts are set by the plan, they are tied to your job, and they usually end when you leave or are laid off. Some plans offer a way to convert group life or health cover to individual cover, often within a short window, so it is worth asking.
What to find out about your plan
- What the plan covers, what percentage it pays, and any yearly or lifetime maximums.
- Whether there is a health or wellness spending account.
- How much life and disability cover you have, and for how long.
- Whether the cover continues after you leave, retire or go on leave.
- Whether your spouse and dependants are covered.
For employers
Group benefits help with hiring and keeping staff, but plans differ in cost, flexibility and administration. Employers usually look at the budget, the plan's design, how renewals are handled and how claims are supported.
Questions to ask
- What would I be left with if I lost this cover tomorrow?
- Is there an option to convert or continue cover?
- Where does the plan stop, and what do I need separately?
Common mistakes
- Never reading the benefits booklet.
- Assuming the plan will always be there.
- Not checking what spouse and dependant cover looks like.