Health & Dental Insurance Online

Now you can buy individual and family health and dental insurance directly online:

For Manulife FlexCare and FollowMe plans click HERE 

For Sun Life HCC conversion health plans click HERE

For Sun Life PHI personal health plans click HERE

Poll

What type of coverage do you most need help with?
Life / Mortgage Insurance
23%
Disability Insurance
16%
Employee Health & Dental Benefits
25%
Critical Illness Insurance
19%
Personal Health Trust/PHSP
18%
Total votes: 266

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One of the most common questions surrounding setting up a Private Health Services Plan (PHSP) is: what type of income qualifies a person for a PHSP?

Employment income is a requirement. There must be an employer-employee relationship where an employee receives employment income from the business. Most simply, this means having T4'd income each year.

Link: What is a PHSP?

Shareholder Income

Another popular question surrounds the paying of dividends from a corporation. Dividend income accrues to shareholders not employees. Unfortunately, if a shareholder receives only dividend income and no T4 income, they do not qualify for PHSP coverage.

Company Directors

Every incorporated company has at least one director, and that director may or may not be a shareholder. A director's responsibility is to direct the operations of the company and for doing so may be considered an employee, and therefore be eligible for coverage under a PHSP. 

For example:

  1. The director and their accountant agree that a director can be considered an employee even though they receive only dividends. In this instance coverage could be put into place.
  2. The director and their accountant agree that the director should take a portion of compensation in employment income. In this instance, the amount of employment income should be in line with the expected medical expenses to be put through the PHSP. In this instance coverage could be put into place.

If you have questions about setting up a Private Health Services Plan to cover employees' health and dental expenses, please call our office at 604.872.2866.

When setting up your payroll system or doing T4s, you'll need to know which employee benefits are taxable.

The benefits for which an employer’s contributions are taxable are: Life & Dependent Life Insurance, AD&D Insurance, Critical Illness Insurance and Provincial Medical Services Plan premiums.

For other group benefits such as: Extended Health Care, Vision Care, Dental Care and Health Spending Accounts, employer contributions are tax-free.

In the case of Disability Insurance, employer contributions have potential taxation consequences for the employee if claims are paid.
 
Group Life & Dependent Life Insurance
·         Employer paid life insurance premiums are a taxable benefit to the employee, and added to the employee’s T4
·         Death Benefits are not taxable to the recipient
 
Accidental Death & Dismemberment & Critical Illness (Non-ROP) Insurance
·         Employer paid life insurance premiums are a taxable benefit to the employee, and added to the employee’s T4 (new for 2013)
·         Benefits are not taxable to the recipient
 
Extended Health Care, Vision Care, Dental Care and Health Spending Accounts (HSA)
·         Employer paid premiums are not a taxable benefit to the employee
 
Disability Insurance (Weekly Indemnity and Long Term Disability)
·         Employer paid premiums are not a taxable benefit to the employee
·         Any employer contributions to the premium will result in disability benefits paid to employees to become subject to income tax
·         Employers may choose to do payroll deductions from employees to ensure disability claim payments are tax free, OR, employers may pay the premiums and employees will pay income tax on the disability benefits received
·         Some companies choose to add the disability premiums to each employee’s T4 as is done with Life Insurance; however, the CRA may not find this an acceptable method of making the benefits tax free
 
Provincial Medical Services Plans such as BC MSP
·         Employer paid premiums are a taxable benefit to the employee

This information is provided for the purposes of designing benefits cost sharing arrangements; for detailed tax information please consult with your business accountant.
 
 

Benefits Plans

True Benefits can help you find the best employee benefits plan.

We have access to over 25 insurers, including the Chamber of Commerce Group Benefits Plan.

Clients Say:

"Rachel is professional, courteous and very knowledgeable while providing outstanding customer service. She is well prepared, delivers personal service, and understands our desire to provide the best possible benefit plan to our employees in the most cost effective manner."

Anne, HR Manager

"I appreciate having a person who is both local and accessible, and was impressed with the initial presentation outlining the options available to us. It is extremely helpful to have Rachel advocating on our behalf."

Sarah, Business Owner

"True Benefits has totally met our needs. Rachel gives personalized attention, and is very thorough. She has suggested many good ideas that we have used to benefit our employees."

Vicki, Controller

"I have referred many clients to Rachel in the past, and without exception, they have all commented to me on her professionalism, vast industry knowledge, great service, and fast response time."

 
Rowan

Thank you for everything that you have done for our family. We are grateful for all your hard work. We look forward to working with you again in the future.

Laurin

"True Benefits has an understanding and awareness of the importance of an effective benefits program. They're proactive in looking for cost effective improvements to plan design and cost containment strategies. My expectations were exceeded - Rachel delivered as promised in a timely manner."

Norrey, CFO

"Thank you Rachel. Great service as always. You anticipated our needs."

Pam, HR Director

I used True Benefits to sort through a tricky health insurance issue related to immigration status and an expired work permit.  Rachel recommended a cost effective solution and quickly verified the policy was the best choice for my situation.  My new health coverage was effective within 2 hours of my initial call to Rachel!  I highly recommend working with Rachel at True Benefits for cost effective solutions and friendly and efficient service.

Mike

Your attention to detail and willingness to never to never take "no" for an answer on my behalf left me in awe of your business ethics.

I will continue to use your services, based on your work ethic and my ability to trust that the policy you are suggesting is perfect for me.

Claire

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