The Independent Consultant’s Newsletter

“BENEFIT PLANS

What to look for when you put your plan together.

 

There are FIVE  basic features in a benefit package. When you leave your full time employer, these are what you give up.

1. Extended Health Care - Coverage that provides: vision care, home support services, ambulance service, registered specialist therapy, hearing aids, private or semi-private hospital rooms, dental & prescriptions.

2. Short-Term Disability - Coverage designed to pay you a daily or monthly benefit from day 1 should you become disabled due to sickness or accident.

3. Long-Term Disability - Coverage designed to pay you a monthly benefit should you become disabled due to sickness or accident. Payments usually begin after 30, 60, or 90 days of total or partial disability. These payments can continue as long as you are disabled to age 65 or beyond.

4. Life Insurance - Coverage usually payable in a lump sum to the beneficiary of your choice should you die while the coverage is in force. Coverage and premium paid will vary based on the amount and type of coverage you have. 

5. Out of Country Coverage - Coverage designed to cover your medical costs should you become sick or injured while travelling outside of the province or Canada.

 

Here are the top five questions we are often asked when we meet our clients.

 

Q.1. Which features should I choose?

A.1. If you where happy with the coverage that you had at your previous employer then you should replace it apples for apples.  What most people do not realize is that they can make their benefits as comprehensive as they want


by purchasing their own coverage

Q.2. How much of this coverage should I have?

A.2. One of the advantages of being self-employed is that you can design your benefits to exactly meet your needs. Of utmost importance you must have flexibility in altering your plan as you grow in your profession and as your lifestyle changes.  You can even build your  plan by gradually purchasing only the most important components first.

 

Q.3. Can my spouse’s plan cover me for some of this?

A.3. A spouses group plan, depending upon its comprehensiveness, usually will have some coverage extended to the other spouse. This can include any or all of the following, extended health care, dental, prescriptions, vision care, and hospital accommodation. There is usually a small amount of  spousal and dependent life insurance included. However there is NEVER short-term and long-term disability coverage extended to the spouse or other family members.

 

Q.4. How much is this going to cost?

A.4. The cost of your benefits will depend on a variety of factors. Some of which require answers to the following questions. Would you like family or single coverage? Do you want dental and prescriptions or just dental? How comprehensive and how much disability coverage do you want? How long do you want your life insurance in force?  As you can see the cost is dependent upon a myriad of items. You can make your benefits as expensive or inexpensive as you would like.

 

Q.5. Is the premium deductible?


 


A.5. You are allowed to deduct, as an expense, traditionally the premiums for extended health care, dental, prescription coverage. Disability premiums are usually not deductible because the benefit is paid to you tax free. However, you and your accountant should discuss how aggressive or conservative you want to be in your tax reporting.

 

Q.6. How quickly can I get my benefits?

A.6. You can get your extended health care, dental, and prescription coverage on the first of the month after the month in which you are approved.  Your disability and life insurance coverage can be made effective immediately should you choose.

 

What is your first step in getting a customized and portable benefits package designed?

 

In order for you to make an educated decision about your benefits, we suggest you go through our needs analysis interview.  This will pinpoint the  appropriate levels of coverage you should have.   The Consultant’s Insurance Consultants  can help you make the right decisions based on our experience dealing with thousands of  self-employed IT professionals.

 


 

 

The Consultant’s Insurance Consultants

Jeffery Dorland & Alec Liatsidis

 

Suite #1206

90 Burnhamthorpe Road West

Mississauga, Ontario, L5B 3C3

 

(905) 276-5505     1 (800) 604-0040

Fax (905) 270-1177

E-Mail. info@thecic.com

WebSite. http://www.thecic.com

 

Call us for a personalized quotation