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Extended Health Care (EHC) benefits, also known as major medical benefits, are designed to supplement your provincial medical plan. It covers expenses or portions not covered by the provincial plan. These categories of expenses include:

• Prescriptions drugs, diabetes supplies and certain vaccines.
• Paramedical services (physio, chiro, massage, clinical counselling, podiatry etc.).
• Private or semi-private hospital room charges.
• Prescription eyewear and exam.
• Medical supplies and equipment.
• Out-of-country emergency medical.
• Many other health care benefits such as nursing, hearing aids orthotics and more.

Dental Care benefits provide coverage for professional dental services and supplies to plan members and their dependents. The types of covered services vary by plan design that generally includes three major categories:

• Basic (aka Plan A): Diagnostic and preventative treatments, such as examinations, x-rays, cleanings (scaling & polishing), fluoride, oral hygiene, fillings, extractions, periodontic services to treat the bone and gum around the tooth and endodontic services including root canal therapy.
• Restorative (aka Plan B): Dentures, crowns, inlays, onlays and bridgework.
• Orthodontic (aka Plan C): Procedures and appliances, such as braces, wires, and other mechanical aids to align bite and straighten teeth.

Life insurance helps loved ones deal with the financial impact of death. It provides them with a one-time, tax-free death benefit payment as specified by the policy/contract. The tax-free payment can be used for anything that may include, replacing income to allow loved ones to maintain their standard of living, pay for final expenses and debts, donate to charity etc.

There are various types of life insurance to fulfill different objectives (e.g. whole life, universal life, term life).

Group Life insurance differs from individual life in at least three major ways:

• Death benefit: Usually a scheduled amount that is fixed (e.g. $15,000 to $100,000) or based on salary (e.g., 1 or 2 times) depending on the size of the group.
• Benefit limit: Usually non-evidence maximum (NEM) meaning that employees do not need to provide medical evidence (unlike individual life insurance). For employees who may not qualify for an individual life insurance policy, the NEM allows them to have coverage through their group insurance plan.
• Term and Conversion: Always a term insurance, often the benefit limit is reduced by 50% to 75% at age 65 and many policies allow for conversion to individual insurance (subject to limits) without evidence of insurability which is a plus.

Health Spending Account (HSA) reimburses eligible health care expenses or other benefits that are not covered by the provincial health insurance plans or other benefits plans such as employer-sponsored group plans. For business owners, particularly incorporated businesses, HSA can be a stand-alone pay-as-you-go plan (no monthly premiums) to reimburse business owners for eligible expenses. Expenses that are eligible for CRA’s medical expense tax credit are eligible under HSA, which includes a wider range of eligible products and services than a group benefits plan. The contributions towards an employee or business owner’s HSA plan are a tax-deductible expense to the employer/business but tax-free in the hands of the employee or business owner.

Lifestyle Spending Account (LSA) reimburses employees for a wide range of lifestyle-related expenses such as fitness memberships, recreational equipment and programs, family leisure, lessons, alternative health care, transportation, etc. Unlike HSA, while LSA is still tax-deductible to the employer, the reimbursements are taxable income in the hands of the employee. Employees like this, particularly those who aren’t as keen about health spending, as it gives them a choice.

Critical illness insurance (CI) pays a tax-free lump sum benefit if the insured is diagnosed with one of the illnesses covered by the policy. For example, CI insurance may cover life-threatening cancer, heart attack, stroke, and more. This living benefit can reduce the financial stress brought on by a critical illness by helping to pay for treatment, nursing care, child care, replace lost income temporarily, etc.

CI is available as an individual (on your own) or group policy through an employer-sponsored plan.

Short-Term Disability (STD) or Weekly Indemnity (WI) benefit compensates an employee for income lost as a result of short-term absences from work due to an accident or sickness. Pre-defined payment is based on a percentage of pre-disability earnings and maximum that starts after an elimination period (waiting period) of up to 15 days. Common benefit periods are 15 weeks (to coincide with the E.I. Sickness Benefit period), 17 weeks, and 26 weeks to coincide with Long-Term Disability (LTD) elimination period (around 17 weeks are common).

Long-Term Disability (LTD) benefit protects an employee’s income and assets during an extended illness or injury that may create a significant financial hardship.

Key Person Insurance (also known as key employee insurance) is insurance a business buys on the life or health of an owner or employee who is critical or essential to the success and viability of the business.

There are three types of Key Person Insurance to mitigate financial impact to the business and/or the employee in the event of death, illness, or disability:

1. Life,
2. Critical Illness, and
3. Disability Insurance.

Life Insurance is a great vehicle to fund Buy-Sell agreements between owners of a business to ensure business continuity in the event of an owner’s death. To do this, each business owner purchases a policy on the life of each of the other owners in an amount equaling their share of the purchase price of the insured owner’s interest at an established value. The business can also be the beneficiary of the owners’ life insurance policies where the death benefits can be used to buy out the share of the deceased owner from the estate.