These are a few of the top reasons I have seen that cause grief for employees and employers. The goal here is to make you aware of some of the pitfalls. Please bare in mind each industry, plan type, and company has their particularities and only a fully exhaustive review can result in a customized plan recommendation.

First and for most we must ask ourselves Why we want to establish a group insurance plan? There are several reasons to set up a group insurance plan such as, but limited to:

• Attracting top talent.

• Maintaining your top employees.

• A sense of responsibility to your employees,

• Tax strategy,

• And many more...
  *If you are unsure of the goal of your plan, it makes it difficult to build a plan tailored to your needs as well as the needs of the employees. It takes a clear vision to implement a successful plan.

An overly generous plan. I often see this with respect to newly started group plan; the coverages are simple too generous. There is a cost/benefit relationship. Each employee not covered by a group plan, must pay up to 660$ per year directly from their income taxes to RAMQ*. The hurdle with an overly generous plan is the renewal you may be in for a surprise after the first 15-16 months upon renewal time.

1. A limited plan. Sometimes I have seen the opposite end of the spectrum where a plan has been in place for a long time and has never been updated or reviewed. If no one is using the plan or seeing value in it, there may as well be no plan.

2. The disability benefit is not graded. Due to the government prescribed maximums for disability benefits, some employees above the average salary mass will pay for benefits they can never receive. If everyone is covered at the same rate, 66 and 2/3rds of their salary, the employees with the highest incomes will be penalized.

3. Not reviewing your plan prior to the renewal. I think this is an under utilized strategy to evaluate and prepare for the renewal. This is especially important for a newly established plan. A group insurance plan takes time to get right, and it is only through communication, and analysis can we get it right. There is no exact science, however, this is the best way to get a benchmark of your current consumption and prepare a for the renewal.

4. Survey the employees. This can be a simple yet effective way to increase employee engagement. The owner has the ultimate say, however, simply asking can create a higher satisfaction rate.

There are a few more points I plan on touching upon, stay tuned for the next addition to these top 5 reasons your group plan isn’t working. I value your time and appreciate the time you took to read my article. I have other ideas to present in the time to come. Namely “Cost plus”. If you are a plan owner and are unfamiliar with this term, you are missing out.