Grouped Critical Illness

Grouped Critical Illness insurance will allow the employer to put together a common plan whereby two or more employees are covered by individual Critical Illness policies. This is NOT a group insurance plan, as it does not consist of a single contract with several insured employees. As the employer, you are the owner of the plan and pay the premiums for the individual policies for your employees. These premiums are tax-deductible. Each employee is covered by a policy and is also the beneficiary. The premiums you pay are not taxable to the employee. The employer will determine the type of coverage and amount of the benefit received should an employee be diagnosed with one of the covered illnesses.

Advantages for the Employer and Employees

Employer

> Premium deductible as an expense 

> Way to reward current employees and attract new ones   

> Opportunity to offer a product not widely offered through group insurance plans  

EMPLOYEE

> Non-taxable benefit where employer pays premium for employee

> Should a claim be made, the benefit is not taxed

> If the employee changes employer, the employee can assume the policy by continuing to pay the premiums at the same cost and with no modifications to the policy