Category: FAQ’s
Reasonable and Customary Fees
A description of reasonable and customary fees, how they are developed and implemented within Canadian group insurance and employee benefit plans.
What is the Life Insurance Conversion Option?
The Life Insurance conversion option provides an employee whose group insurance coverage is ceasing to convert their current Basic and Optional Life insurance amount to an individual insurance policy without the need to provide evidence of insurability. To exercise the conversion option, the employee must fill out and return the relevant forms to their group insurance […]
What is Mandatory Generic Substitution?
Mandatory Generic Substitution is a drug plan feature that limits the ingredient cost of a drug charge to that of the lowest cost alternative. Where there is a generic interchangeable drug (a generic equivalent) then the generic drug will be dispensed or the plan member will be reimbursed up to the cost of the generic […]
How To Calculate Monthly Life Insurance Premium
Life insurance is expressed as a rate per $1,000 of insurance. To calculate Life Insurance premium you take the benefit volume per $1,000 of coverage multiplied by the monthly rate. For example, to calculate the monthly premium based on a 2x annual earnings (assume $40,000) schedule and a rate of $0.12 per $1,000 of coverage […]
How To Calculate Monthly Long Term Disability Premium
Long Term Disability (LTD) is expressed per $100 of benefit volume. To calculate monthly LTD premium you take the benefit volume multiplied by the rate per $100 of coverage. For example, if you have monthly salary of $5,000, a 66.7% LTD benefit schedule, and a rate of $1.50 per $100, the calculation is as follows: […]
