True Benefits Blog

2010 Government Benefits Update

Each year, government benefits such as EI and CPP are updated. The figures for 2010 have been summarized on a PDF available at our website.

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

Be Mortgage Insurance Savvy

Just bought a home or renewed your mortgage? Protect your loved ones with the right insurance.

If you want to protect your family with life or critical illness insurance, make sure it’s with an individual policy and not through the bank. Here’s why:

• The right to choose your own beneficiary; with bank insurance, the bank is the beneficiary.
• Coverage is portable and you are the owner. If you move, your insurance moves with you, and there's no need to reapply. With a bank plan, if you change lenders, you need to reapply for new coverage.
• Lock in your rates with guaranteed pricing and coverage. With a bank plan, your coverage and rates may not be guaranteed.
• Bank insurance does not allow your family to decide how to spend the money; with an individual plan, your beneficiary can use the money as they wish: to pay the mortgage, take time off work, or pay for a child's education.

On top of these important reasons not to buy from the bank, we're often able to save our clients money, usually between 10% and 30%, over their bank insurance with individual life, and critical illness coverage!

Every client receives a customized insurance needs analysis report that gives a personalized picture of what type and how much coverage they need. Our recommendations are prepared based on a full market survey of top Canadian carrier rates and products. We shop the market on your behalf.

Please give us a call at 604.872.2866 or email info@truebenefits.ca for more information.

Rachel von Sturmer, BA, GBA, CFP

What's an Insurance Medical?

Depending on the type and amount of insurance you are applying for, as well as your age, you will be required to provide certain information and medical evidence in order to qualify. This is paid for by the insurer.

Commonly, a nurse will be sent to your home or office to take a blood and urine sample and do a health history questionnaire with you. They will also take blood pressure readings, and measure your height and weight.

For certain age groups and for higher insurance amounts, the nurse may do an electrocardiogram reading (EKG). An EKG records electric impulses of the heart through a band across your chest while you rest.

There are several things you can do to prepare for your insurance medical, and make sure you are going to get the best possible results:

• Get a good night's sleep the night before
• Consider booking a morning appointment with the nurse so that you don't have to fast during working hours
• Avoid alcohol, caffeine, nicotine, strenuous exercise and salty/fatty/rich foods 24 hours before your medical
• Have a glass of water an hour ahead of the meeting
• Rebook if you are feeling upset or particularly stressed

For more information, please contact our office at 604.872.2866 or info@truebenefits.ca.

Rachel von Sturmer

2010 EI Maximum Update

The federal government recently announced new Employment Insurance (EI) premium rates and maximums for 2010.

Previously, the annual maximum for insurable earnings was $42,300 and the corresponding weekly EI benefit max was $447.

This is increasing slightly for 2010 to $43,200 and $457 respectively.

Benefits plans that have Short Term Disability (STD) or Weekly Indemnity coverage may be affected by this. If your plan has a set weekly maximum, such as $450, the contract may need to be amended. If your plan has a description such as "equal to the current federal maximum", then the coverage automatically updates each year and nothing need be done. Ideally, STD plans are set up with a floating definition for maximum coverage.

PS: if your business offers STD or WI coverage to employees, make sure you take advantage of the EI Premium Reduction program.

If you have any questions, please feel free to call our office at 604.872.2866 or email info@truebenefits.ca.

Rachel von Sturmer, BA, GBA, CFP

Popular Employee Benefits and Allowances

According to Benefits Canada, here are the most commonly offered employee benefits and allowances. Does your office cover these?

Insured benefits:

• Medical (71%)
• Life insurance (57%)
• Dental (52%)
• Accident (47%); and
• Vision care (35%)

Allowances:

• Mobile phones/telecommunications (29%)
• Cars (29%)
• Gym memberships (28%)
• Childcare (24%)
• Food (18%)
• Public transportation (15%); and
• Housing (13%)

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

2009 Employee Wellness Survey

Did you know that this is Canada’s Healthy Workplace month (October 5 to November 1, 2009)?

The 2009 National Wellness Survey conducted by Buffett & Co. reveals that Canadian organizations are making their employee’s health a priority.

According to the survey results, work-related stress, mental health issues, and high blood pressure are the top three health risks affecting participating organizations. In 2006, the top three major health risks were work-related stress, stress outside the workplace, and smoking. Seeing a pattern?

Stress in the workplace can have a significant impact on productivity, employee engagement, and health-related costs.

The ideal result of a wellness initiative is an increase in employee health and morale, and a decrease in absenteeism and presenteeism.

Almost all insurers now offer employee and family assistance programs, and wellness plans that can include smoking or blood pressure clinics, 24 counseling hotlines, and nutrition/weight management assistance.

What is your workplace doing to encourage employee wellness? Let us know in the comments section.

Rachel von Sturmer

www.truebenefits.ca

Protection for Canadian Policyholders

Did you know that all life insurance companies authorized to sell policies in Canada are required by the federal, provincial and territorial regulators to become members of Assuris?

If a customer holds a policy from a member company, the policy benefits are protected by Assuris. In the case that the insurer you have bought a policy from fails, Assuris or another carrier will step in to honour your coverage. 

The complete member list is available on their web site, along with more information on the protection offered: www.assuris.ca.

Rachel von Sturmer, GBA, CFP

www.truebenefits.ca

New Grads Losing Benefits Coverage?

Under most employee benefits plans, dependent children that are full time students can stay on their parents' benefits plans until age 25. When they graduate or turn 26 they must find their own coverage.

For students continuing studies past age 25, most universities and colleges have voluntary benefits plans that are often cost effective and offer good protection for health and dental claims.

For new grads, the ideal situation is to land a job with great employee benefits. But, if you are entering self-employment, an unpaid internship, or take a position without group benefits, an individual health plan is the next best thing.

Even better, if you enroll in an individual plan within 60 days of losing your old coverage, you won't have to disclose any medical information in order to be approved! This is a real perk when you have an existing condition, prescription or treatment plan. Plans are modular and can range from basic to very comprehensive, so there is always a solution that will be budget-approved.

If you have any questions, please feel free to email info@truebenefits.ca or call 604.872.2866.

Rachel von Sturmer, GBA, CFP

www.truebenefits.ca

Frequent Flier Points A Taxable Benefit?

It seems like every credit card available today has some kind of fringe benefit. Whether it is frequent flyer points, points towards purchases or cash back, a credit card is no longer just a way to defer payment.

After accruing frequent flyer miles while travelling on company business, employees may occasionally cash in their points for vacations, or other merchandise. In the eyes of Canada Revenue Agency (CRA), employees were supposed to calculate the resulting benefit of these points and include it as income on their personal tax return!

However, the CRA has now introduced new guidelines around claiming frequent flyer miles on a personal tax return. Employees don't have to report them if:
• The points are not converted to cash
• The plan or arrangement is not an alternate form of compensation as part of your job
• The plan or arrangement is not designed to avoid paying tax

These rules apply when the employee controls the points. If the points are controlled by an employer, and given to the employee in a situation such as a bonus, employers must continue to report the fair market value of any benefits received by the employee on their T4 slip when the points are redeemed.

BC Announces New Prescribing Regulations

Provinces across the country are enhancing the scope of practice for various healthcare professionals. In keeping with this, BC has recently announced new regulations for optometrists and naturopaths.

The enhanced scope of practice for BC optometrists means practitioners can now:

• Diagnose and treat common eye diseases
• Prescribe, dispense and administer topic prescription medications
• Remove a superficial foreign body from a patient’s eye

The enhanced scope of practice for BC naturopathic physicians means practitioners with additional training will be able to prescribe medication as appropriate in their primary care practices.

More information is available here.

Rachel von Sturmer, Benefits Specialist

www.truebenefits.ca