Summary:
In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host interviews Keith Foot, CEO of Ralph Moss Insurance. Jason Pereira and Keith Foot discuss employee benefit plans, the different components of the plans, and tips on how you can contain cost.
Episode Highlights:
● 01:00: – Keith Foot introduces himself and what he does.
● 01:41: – What are the reasons for group employee benefits?
● 03:53: – What is the cost of setting up a group employee benefit?
● 04:58: – What kinds of ‘target loss ratios’ can companies be looking at?
● 12:04: – People need more than what is offered through a group insurance plan.
● 15:22: – How does accidental death and dismemberment insurance work?
● 19:48: – Who is paying for these employee benefits?
● 23:27: – How does dental insurance factor into group employee benefits?
● 31:28: – What is involved in extended insurance plans and reimbursements?
● 37:02: – Keith Foot’s company audits the claims of their clients every year.
● 41:41: – There is a period of stability required before traveling with travel insurance.
● 44:48: – What can employee assistance programs, spending accounts and wellness accounts look like?
● 53:15: – What is the benefit versus cost for vision care?
● 57:36: – There are fewer and fewer stop-less providers that are willing to ensure a stand-alone self-insured plan.
● 1:00:53: – So many employers don’t know the cost of their employee insurance benefits.
3 Key Points
1. Keith Foot is seeing group employee benefits as averaging about 10% of payroll. In real dollars to an employee it comes to about $3000-$4000 per year for a benefit program with life, accidental death and dismemberment, some form of disability, some health and some dental. 2. Dependent life benefits are adjunct plans to the employee benefits that are
usually around $5000 for a child and $10,000 for a spouse.
3. The various tiers of dental insurance are basic dental for x-rays and
cleanings, level two that covers fillings and levels three and four which are crowns and bridges.
Tweetable Quotes:
● “Any dollar that the employers pays out in benefits, is a total write-off to the company and the employee gets the benefit tax-free, with the exception of life insurance where there is a tax on the premium.” – Keith Foot
● “Our job as a consultant is to allow the insurance company to make money, because if they don’t make money, we don't have anyone to ensure our clients or to ensure our companies. – Keith Foot
● “The thing with group life insurance to remember is it is not portable. When an employee leaves, if he has $100,000 of coverage and he leaves the company, it is gone.” – Keith Foot
Resources Mentioned:
● Facebook – Jason Pereira’s
● LinkedIn – Jason Pereira’s
● FintechImpact.co – Website
● jasonpereira.ca – Website
● Linkedin – Keith Foot’s
● RalphMoss.ca – Website
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