Trusted Tips and Resources

Trusted Tips & Resources

Trusted Saskatoon Group Benefits Advisors at Wiegers Financial & Benefit Discuss Group Benefits Plans For Employees and Their Families

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Its Saskatoon Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning, division. In this latest Wiegers Group Benefits expert tip, they discuss how the group benefits plan you provide employees help look after their loved ones too. Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits experts.

 

HOW THE GROUP BENEFITS PLAN YOU PROVIDE YOUR EMPLOYEES HELPS LOOK AFTER THEIR LOVED ONES TOO


When most people think about what it takes to help protect their loved ones’ financial security, they tend to think about life insurance – and it makes sense. Owning insurance that pays out a lump sum benefit to your beneficiaries in the event of your untimely death is the most effective way to ensure that even when you’re no longer here to contribute to them financially, they’ll be looked after. When an individual wants or needs to purchase life insurance, he or she typically contacts a financial advisor or insurance representative who then conducts a needs analysis to determine the individual’s life insurance needs, applies to one or more insurance companies for it, and then if the individual’s insurance application is approved (including potentially a medical questionnaire and tests), begins paying insurance premiums to keep it in-force.

What a lot of people don’t realize is that as important as it is to purchase sufficient life insurance to protect their loved ones’ financial security after their gone, the group benefits plan you provide your employees likely includes a number of benefits that are also important in helping. Your company’s benefits plan, for example, likely includes a life insurance benefit that amounts to a flat amount or a multiple of each employee’s gross annual income, and that is partly or entirely guaranteed regardless of the employee’s health. This can amount to a relatively significant benefit, though for most people, it is not enough on its own to adequately look after their loved ones financially. A qualified advisor will want to include a person’s group life insurance benefit in a thorough analysis of how much insurance he or she has, and how much is still needed.

But beyond the life insurance you likely provide in your company’s group benefits plan are other benefits that directly or indirectly help care for your employees’ loved ones. Most plans, for example, include short and long-term disability insurance for employees that pay out a benefit each week (in the case of short term disability) or each month (in the case of long term disability) when an employee becomes disabled and is unable to work for an income. This is as beneficial for your employees as it is for their families, given that most families cannot sustain the loss of an income for even a short period of time. When you consider that group disability insurance – unlike Workers’ Compensation Insurance – covers disabilities sustained both on and off the job, the financial security it affords your employees and their families becomes even more apparent.

Most group benefit plans include more than just insurance, though, that benefits the employees’ families. Plans that include Health, Prescription Drug and/or Dental benefits, for example, almost always include coverage (or the option for coverage) for each employee’s dependent spouse and/or children. And in cases when an employee dies when he or she still has coverage under a group benefits plan, there is usually a survivor benefit that continues to afford the employee’s dependents with coverage for one or two years following the death with no insurance premiums required.

In order to really stand out as an employer who cares, you have options to take your benefits plan beyond what’s become standard and, in the process, help improve your competitive position in the war on talent. As just one example, you can supplement your company’s benefits plan with a Health Spending Account and/or Personal Spending Account as a means to providing your employees and their families with the flexibility to choose how to spend wellness dollars. You can add an Employee and Family Assistance Plan (EAFP) to provide a number of important services, including but not limited to counselling. You can add Critical Illness Insurance coverage to your plan – either as a mandatory or voluntary benefit – that provides a lump sum financial benefit to an insured person diagnosed with a covered critical illness. There are other benefit options too that your group benefits advisor should recommend or at least advise you about so you can make the most informed and impactful decision for your own team.

Really, then, by helping to take care of your employees with a group benefits plan, you’re helping take care of their families too. At a time when employees are in the position to choose who they want to work for, and when working for an employer who actively demonstrates care and concern for his or her employees is non-negotiable, it’s important that you make clear what you do for your team. To learn more, please speak with your benefits advisor.

Amanda Getzlaf
Benefits Account Manager, Wiegers Financial and Insurance Planning Services Ltd.


Wiegers’ Benefits Consulting Division includes many consultants and support staff who custom-design the most employee-valued and cost-effective group benefit, personal insurance, employee assistance programs, and retirement plans available. Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits Advisors 

Trusted Saskatoon Group Benefits Advisors at Wiegers Financial & Benefits Explain The EI Premium Reduction Program

Wiegers Financial & Benefits is one of Saskatchewan's largest private financial planning and employee benefits consulting firms.  In this latest Wiegers Group Benefits expert tip, they explain how the EI Premium Reduction Program benefits employers and employees with group short-term disability insurance. Wiegers Financial & Benefits is a Trusted Saskatoon Insurance and Group Benefits expert.

 

EI PREMIUM REDUCTION PROGRAM BENEFITS 


WHAT IS THE EI PREMIUM REDUCTION PROGRAM?

The Employment Insurance (EI) Premium Reduction Program is a government incentive that allows employers to pay EI premiums at a reduced rate if their employees are covered by group Short-Term Disability insurance.  The Program intends to reduce the EI premiums of both the employer and the employees (though, for administrative reasons, legislation reduces only the employer’s premiums).  Consequently, the Program requires that the employer return a portion of the savings to all the employees for whom the reduced rate applies.  Some of the more popular means of doing this include providing employees with a cash rebate (taxable income), paying for new or enhanced employee benefits, or hosting a staff party – each of which typically has a direct and positive impact on employee morale.  Only written mutual agreements that identify how the employees will benefit from the reduction will be accepted.

Your company qualifies for the EI premium reduction if it:

  • Provides at least 15 weeks of benefits for Short Term Disability
  • Matches or exceeds the level of benefits provided under EI
  • Pays benefits to employees within eight days of illness or injury (the elimination period cannot exceed 7 consecutive days)
  • Is accessible to employees within three months of hiring
  • Covers employees on a 24-hour-a-day basis

HOW MUCH CAN YOUR COMPANY SAVE?

Maximum insurable earnings in 2021 are $56,300.  An employee who earns this much (or more) will pay EI premiums of $889.54 (calculated at 1.58%). For this calculation, we have used a reduced employer multiplier of 1.166.  Note that reduced rates change annually on January 1st and are prorated throughout the year.  If you apply effective January 1st, your rate will be slightly lower than if you apply at a later month in the year.

Employer regular premium =                                          $889.54 x 1.4 = $1,245.36

Employer reduced premium =                                        $889.54 x 1.166 = $1,037.20

Amount of total premium reduction =                              A – B =  $208.16

Employee’s portion of reduction =                                 C x 5/12 = $ 86.73

Employer’s portion of reduction =                                  C x 7/12 = $121.43


Assuming the above numbers, an employer can save as much as $121.43 annually in EI premiums per employee and can return $86.73 in some form to the employee and/or his or her colleagues.  The financial incentives for utilizing the program are clear.


WHAT MUST I DO TO PARTICIPATE IN THE PROGRAM?

To participate in the Program, you must register by submitting an initial application form, which is available on Service Canada’s website at www.servicecanada.gc.ca.  If you already participate in the Program, you needn’t reapply; your entitlement will continue until you change or cancel your approved plan.

Debra L. Wiegers, GBA, CLU, Ch.F.C.
Managing Principal, Benefits Division  

Wiegers’ Benefits Consulting Division includes many consultants and support staff who custom-design the most employee-valued and cost-effective group benefits, personal insurance, employee assistance programs, and retirement plans available. Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits Advisors 

Trusted Saskatoon Group Benefits Advisors at Wiegers Financial & Benefit Share The Importance of Benefits Plan Administration Tasks

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Its Saskatoon Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning, division. In this latest Wiegers Group Benefits expert tip, they explain the importance of benefits plan administration tasks. Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits experts.

 

THE IMPORTANCE OF BENEFITS PLAN ADMINISTRATION TASKS


Plan administration is an important job! An eligible employee who is not insured correctly or who has not been offered benefits can not only have a negative impact on the employee’s well-being but it can also pose liability issues for you and the business.

What types of plan administration tasks do you need to remember?

Most such tasks apply to all employees so they should become an automatic part of your group benefits plan administration. Some of the most important tasks include the following:


  • It is the employer’s responsibility to ensure that each employee is enrolled properly and on time. If an employee is enrolled late on the plan (typically 31 days after becoming eligible to join), his or her coverage is typically not guaranteed. The employee and his or her dependents will be considered late applicants, and will need to complete and submit forms about their health. They will then need to be medically approved before enrolling on the plan, at which point they will likely learn that their coverage is restricted or has been declined entirely. This not only has the potential to negatively impact the employee’s and/or dependents’ well-being but it also poses a significant liability risk to the employer. It is far better and easier for everyone for an employer to enroll an eligible employee properly and within the required timeframe.

  • In almost all cases, it is to the employer’s and employees’ benefit to make participation in the benefits plan mandatory. If an employee was permitted to join a plan only when he or she anticipates needing a claim paid, this would make the plan financially non-viable; both non-claimers and claimers need to be contributing premiums into a plan to build up funds to cover claims (similar to home and other forms of insurance). This is why Wiegers Financial & Benefits recommends that employers make participation in their benefits plan mandatory for all eligible employees. If, though, you wish and are able to permit employees to waive all benefits coverage under your plan, it is important that you have those employees sign a group benefits plan waiver form that makes clear that you offered coverage to these employees but that they chose to decline it.

  • Almost all group benefit plans permit an employee to waive Health and/or Dental coverage if he or she has comparable coverage through another plan (typically a spouse’s plan). The employee must be enrolled for all other applicable benefits on the plan as Life, Disability and other benefits are not offered to dependents.

  • Changes to an employee’s coverage must be submitted to your group insurance carrier no later than 31 days after the event. Have your employees communicate regularly with you about changes that need to be made such as:
    • Marriage, divorce, new baby, legal guardianship of child (requires proof)
    • Overage dependents, enrollment in a secondary school with the required amount of classes
      Note: Dependents over age of 18 working more than 20 hours per week are not considered eligible for coverage under a parent and should be removed from the benefits plan

  • If you have employees who are eligible to apply for additional Life and/or Disability coverage above what is automatically provided through your benefits plan, it is your responsibility to advise them of the option to apply. To apply, the employee must complete a health questionnaire provided by the carrier. If he or she chooses not to apply, Wiegers Financial & Benefits recommends that the employee sign a waiver confirming that he or she is aware of the option to apply for additional coverage but has decided against it.

There are, predictably – or not-so-predictably – a number of other plan administration tasks that employers like you need to be diligent about remembering to do to ensure that your employees and their dependents have all of the coverage available to them (and that you’re not doing anything to put yourself or your business in a liable position). An effective and talented benefits advisor will ensure that you are aware of all of the plan administration tasks you need to be aware of, and will ensure that you are also aware of any particularities about your own plan that differ from the norm. As long as you remember to do what you need to do, you’ll have a benefits plan that helps you take care of your valued employees and their families while also preventing you from liability. Benefits plan administration done correctly is a win for all.


Amanda Getzlaf,
Benefits Account Manager, Wiegers Financial and Insurance Planning Services Ltd.


Wiegers’ Benefits Consulting Division includes many consultants and support staff who custom-design the most employee-valued and cost-effective group benefit, personal insurance, employee assistance programs, and retirement plans available. Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits Advisors 

Trusted Saskatoon Group Benefits Advisors at Wiegers Financial & Benefit Explains Employee Benefits Plans

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Its Saskatoon Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning, division. In this latest Wiegers Group Benefits expert tip, they explain just how much employee benefits plans do for employees and their families. Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits experts.

 

Takes Care of Employees With A Group Benefits Plan


When employees think about their benefits plan, the benefits that most often come to mind are for prescription drugs, massages, and maybe a dental check-up every year. However, I’m confident that if you were to ask any Benefits Advisor or Consultant, he or she would swiftly tell you that benefit plans are so SO much more than that! These benefits are just the tip of the iceberg in terms of what a plan can provide for employees and their families.

Many people – employees and employers alike – are surprised by just how extensive an employee benefits plan can be. They’re often also surprised by how much a plan can do for an employee’s physical, mental, and financial well-being. If the COVID-19 pandemic has taught us anything, it is that our well-being is something we can no longer take for granted. And having an employee benefits plan is one of the best ways to stay protected.

There are two cornerstones of a benefit plan that deserve a lot more attention than they typically receive: Life Insurance and financial protection in the event of a disability or illness, namely, Short-Term and Long-Term Disability Insurance. These benefits are often included in benefit plans but are not touted enough for the critically important protection they provide.

Benefits Canada reported recently that many people between the ages of 30-50 have no Life Insurance outside of what is provided through their employee benefits plan. On the one hand, this makes for a hefty responsibility for employers. But on the other hand, employers who provide their employees with a strong Life Insurance benefit have a competitive advantage that helps them attract and retain top talent.

As for Disability Insurance, Wiegers Financial & Benefits is passionate about including it in every benefits plan. The reality is that many employees work paycheck to paycheck, and in the event of a severe or prolonged illness or injury, most don’t have enough money saved to be able to weather the storm financially. Disability Insurance is very often a financial lifeline that enables employees to focus their time and energy on getting better instead of stressing about how they’re going to pay their bills. And it’s apparent that the pandemic’s impact on mental health and disability is not going to lessen any time soon. This Benefits Canada article speaks to how the majority of Canadian employers are prioritizing mental well-being, and Disability Insurance benefits are a key part of what they’re doing about it.

If you’re like a lot of Canadians who believe that employee benefit plans are most important for getting their prescription drugs paid for or their massages covered, I encourage you to delve into the details of your plan. You’ll likely be surprised by what you learn, and you’ll be in a better position to know what you can be, or should consider, doing outside of your plan to protect your well-being. Your personal financial advisor will be a great asset to you in advising you on a good path to take and then actually putting these wheels into motion. But always remember that your benefits plan is likely doing more for you than you realize so be sure to provide your advisor with all of the details. Your benefits plan is there to help take care of you; let it do all that it can!


Jewelian Berry,
Benefits Account Manager, Wiegers Financial and Insurance Planning Services Ltd.


Wiegers’ Benefits Consulting Division includes many consultants and support staff who custom-design the most employee-valued and cost-effective group benefit, personal insurance, employee assistance programs, and retirement plans available. Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Insurance and Group Benefits Advisors 

Trusted Saskatoon Financial Planners at Wiegers Financial & Benefits Help Keep Your Financial Plan Current

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Its Saskatoon Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance division. 

They explain everything you need to keep current in your financial plan in their latest Wiegers Financial tip. Wiegers Financial & Benefits are Trusted Saskatoon Financial Advisors 




Up to Date or Out of Date? Everything You Need to Keep Current in Your Financial Plan

It seems like just yesterday that we first started hearing about the COVID 19-virus, and now it’s been almost a year of uncertainty with only a blurry horizon in the future. What that horizon will look like, or when we will reach it, is still unknown but the hope is that we get there soon… and that we can hold our loved ones tight again!

As we all know, life can change in an instant, leaving our best-laid plans torn to pieces. However, it is critically important to pick up the pieces and find the new course we are to take so that despite the interruption, we can get to where we want to be. As a Certified Financial Planner with Wiegers Financial & Benefits for almost seven years, I have experienced with every client some kind of change in their lives and ultimately their financial goals. Given that life is not stagnant, it’s critically important that your plan and goals change with it to keep up.

What kind of life changes can impact your financial plan? Any number of things can change your goals but some of the most common changes are those concerning:

  • Job and pension
  • Income
  • Marital status
  • Dependents (children or elderly parents)
  • Real assets (e.g. primary residence or rental properties)
  • Other investments
  • Insurance policies
For instance, if you changed jobs due to COVID-19 or something else, your pension might have changed too, which will impact your projected retirement income. Without advising your advisor and potentially modifying your plan accordingly, you might find yourself behind, or ahead, of your retirement goals.

As another example, a change in your marital status or in how many dependents you have and who they are could make your beneficiary designations outdated. The last thing you likely want is for your insurance benefit to be paid to people you no longer want to receive it, or for any loved ones – including children – to be left out (and potentially taking the issue to court in an attempt to get it sorted out in their favour). Given that the solution to avoiding this kind of upset is a simple beneficiary change, it makes a world of sense to ensure that you regularly review your beneficiary designations to ensure that they remain current with your plans and wishes.

Life changes; so should your financial plan. If you have any questions or wish to review your financial plan, please speak with your financial advisor.


Kim Chicoine, CFP, B.Comm.
Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.
Financial Planner, Manulife Securities Investment Services Inc.


Contact Wiegers today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Financial Advisors 

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