In today’s competitive job market, offering a paycheck alone isn’t enough to attract top talent – employee benefits are the real deal-maker. In fact, a survey by Glassdoor revealed that 79% of job seekers consider benefits and perks among their top priorities before accepting a job. 

That’s why knowing how to buy group insurance in Canada isn’t just about ticking a box. It’s about building a workplace that attracts, retains, and protects your best people. This guide will walk you through every step, from comparing providers to tailoring coverage that fits your team’s needs and your budget.

What is group insurance in Canada?

Group insurance in Canada is a policy that typically covers a group of employees under a single contract. This type of employee benefits plan helps businesses attract and retain top talent, while providing employees with peace of mind. 

Employers can customize group insurance in Canada to include core benefits like prescription drugs, vision care, and dental coverage, along with extras such as mental health support or wellness programs. 

Group insurance can be provided to a workforce with a minimum of two working employees or owners. This makes group insurance a smart choice for companies that want to provide valuable protection while keeping premiums manageable.

Here’s what group insurance in Canada typically covers:

• Health coverage: Prescription drugs, hospital stays, ambulance services, and paramedical care like physiotherapy, chiropractic care, massage therapy, and acupuncture.
• Dental coverage: Routine checkups, cleanings, fillings, scaling, polishing, and sometimes major services such as root canals, crowns, and orthodontics
• Vision care: Eye exams, prescription glasses, and contact lenses, with allowances for frames and lenses
• Life insurance: Lump-sum payment to beneficiaries in case of the employee’s death
• Accidental death and dismemberment (AD&D): Additional payout for accidental death or severe injuries such as loss of limbs or vision
• Disability insurance: Short-term or long-term income replacement if an employee cannot work due to illness or injury
• Mental health support: Coverage for therapy, counselling, and psychiatric care
• Employee assistance programs (EAPs): Confidential counselling services for personal, financial, or work-related issues
• Wellness benefits: Support for healthy living, such as gym memberships, smoking cessation programs, or nutrition counselling

How to choose the right group insurance plan for your employees?

Choosing the right plan when buying group insurance in Canada requires careful planning so you can meet employee needs without overspending. Employers should assess team demographics, understand pain points and compare multiple insurance options before choosing the right fit for their organization. 

Here’s everything you need to look for when buying group insurance in Canada:

• Assess your team’s demographics, health conditions, and family coverage needs to design a plan that works for everyone
• Decide whether a mandatory plan for all employees or a voluntary enrollment option, based on your total employee size. Companies with a workforce of fewer than 10 employees should make group insurance mandatory for all full-time employees
• Include essential core benefits like health, dental, life, and disability coverage, and offer optional add-ons for extra flexibility
• Evaluate coverage for dental, vision, mental health, and paramedical services to ensure the plan addresses diverse employee needs
• Compare multiple group insurance providers based on pricing, claims approval times, provider network size, and customer satisfaction ratings
• Choose a plan with adjustable coverage options so you can scale benefits as your workforce grows or changes
• Review renewal terms, rate guarantees, and factors that may cause premium increases over time
• Check if the plan offers wellness benefits, such as gym memberships, smoking cessation programs, or nutrition counselling, to encourage healthier lifestyles
• Ensure the policy has minimal medical underwriting so employees with pre-existing conditions can easily qualify
• Look for tax advantages by confirming that employer-paid premiums qualify as deductible business expenses
• Confirm whether dependents can be added to the plan at affordable rates to make the coverage more attractive
• Partner with an experienced group insurance broker or advisor (such as our experts at PolicyAdvisor) who can negotiate better rates and customize benefits for your workforce

How to buy group insurance in Canada: A step-by-step guide

When buying group insurance in Canada, employers should follow a clear, structured process to balance employee needs with budget limits. Determining the budget and contribution split, shortlisting the best group insurance plans, comparing multiple quotes, customizing your benefits package, etc, can help employers buy the right group insurance for their needs.

Step 1: Determine your budget and contribution split

Decide how much your company can spend and whether you will cover premiums fully or share costs with employees, such as an 80/20 split. However, the minimum contribution split for most insurers is capped at 50% from the employers, although some companies may allow employers to go below 50%. Consider using tools like Health Spending Accounts to control costs and add flexibility.

Step 2: Research and shortlist the best group insurance providers

Identify the top group insurance providers in Canada that offer competitive pricing, strong customer service, customizable coverage options, and digital enrollment tools. Focus on companies with a proven track record and flexible plan designs.

Step 3: Request and compare multiple quotes

Gather quotes from several providers or brokers to compare premiums, coverage details, participation requirements, and additional services. Comparing side-by-side helps ensure you secure the best rates when buying group insurance in Canada.

Step 4: Review policy terms and exclusions

Examine the fine print, including eligibility rules, coverage limits, exclusions, and renewal conditions. Check whether dependents can be easily added, and if minimal medical underwriting applies to make coverage accessible to all employees.

Step 5: Customize your benefits package

Tailor your plan to meet workforce needs by including core coverage like health, dental, vision, life, and disability benefits, along with optional add-ons such as mental health services, critical illness coverage, and wellness programs.

Step 6: Complete enrollment and implementation

Set up an open enrollment period, establish payroll deduction systems, and ensure employees understand how to access their benefits. Use digital tools to streamline onboarding and make it easy for staff to manage their coverage.

Step 7: Monitor, review, and adjust annually

Track claims data, gather employee feedback, and compare your plan to industry standards. Adjust coverage levels or add new benefits to keep your plan competitive and aligned with employee needs.

Step 8: Leverage expert guidance

Work with an experienced group insurance broker (like our licensed professionals at PolicyAdvisor) or benefits advisor to negotiate better rates, customize benefits, and ensure compliance. Professional advice can help you maximize value and avoid costly mistakes when buying group insurance in Canada.

How much does group insurance cost per employee in Canada?

The cost of buying group insurance in Canada depends on the coverage level, benefits included, and the insurer’s pricing model. Employers can expect to pay between $130 and $300 per employee per month for an employee benefits plan in Canada.

• A basic group insurance plan costs between $130 and $250 per employee per month, offering essential health coverage
• A mid-tier plan with additional benefits such as dental and vision typically costs $180 to $225 per employee per month
• An advanced group insurance plan with comprehensive coverage, including mental health support and extended health benefits, ranges from $250 to $300 per employee per month

The total cost can vary depending on employee demographics, industry risk factors, and whether you choose mandatory or voluntary participation. Employers can reduce costs by customizing coverage, bundling benefits, and working with a group insurance broker to negotiate better rates.

Are there tax benefits when you buy group insurance in Canada?

Yes, when you buy group insurance in Canada, both employers and employees can enjoy tax advantages. For employers, group insurance premiums are typically considered a business expense, making them tax-deductible and reducing overall taxable income. Employees often receive certain benefits, like health and dental coverage, tax-free.

However, some benefits, such as group life or disability insurance, may have taxable portions if the employer pays for these policies. Taking advantage of these tax benefits not only reduces costs but also makes group insurance a more attractive and affordable option for businesses of all sizes.

Is it better to buy group insurance through a broker or directly from an insurer?

In Canada, buying group insurance through a broker is often the better choice because group insurance brokers, such as our experts at PolicyAdvisor, have access to multiple insurers, allowing them to compare plans, negotiate competitive premiums, and design coverage that fits your team’s unique needs. 

They guide you through the entire process, right from assessing requirements to explaining policy terms. They also provide ongoing support for renewals and claims. In contrast, buying directly from an insurer limits you to their products and pricing, which may not offer the best value or flexibility for your business and employees.

Why should you buy group insurance in Canada?

Buying group insurance in Canada gives both employers and employees access to affordable, comprehensive benefits under a single policy. Through employee insurance plans, companies strengthen their benefits package, reduce absenteeism, improve productivity and gain a tax advantage. Employees also enjoy a more comprehensive coverage, affordable premiums, income protection and peace of mind.

Benefits for employers

• Attract and retain top talent: Competitive benefits make job offers more appealing and reduce employee turnover
• Boost employee loyalty and satisfaction: Workers value companies that invest in their health and well-being
• Gain tax advantages: Employer-paid premiums for group health and dental benefits are tax-deductible business expenses in Canada
• Lower hiring and training costs: Keeping experienced employees reduces expenses tied to recruiting and onboarding new staff
• Improve productivity: Healthy employees take fewer sick days and perform better on the job
• Enhance company reputation: Offering strong group benefits positions your business as an employer of choice in your industry
• Flexible plan design: Employers can tailor coverage to meet workforce needs without overspending
• Simplified administration: Managing one group policy is easier than handling multiple individual plans

Benefits for employees 

• Affordable premiums: Group rates are lower than individual insurance costs because the risk is shared among many members
• Broader coverage: Plans often include health, dental, vision, life, disability, and wellness benefits
• Minimal medical underwriting: Employees can qualify for coverage even with pre-existing conditions
• Access to preventive care: Routine checkups, screenings, and early treatments are covered, helping maintain long-term health
• Income protection: Disability benefits ensure a steady income if an employee can’t work due to illness or injury
• Mental health support: Access to counselling, therapy, and employee assistance programs for mental health support and emotional well-being
• Family coverage options: Employees can extend benefits to spouses and dependents at a lower cost
• Peace of mind: Knowing that health expenses are covered reduces financial stress and improves overall quality of life

What are the common mistakes to avoid when buying group insurance in Canada?

When you buy group insurance in Canada, making the wrong decisions can lead to higher costs, limited coverage, and unhappy employees. Avoid common mistakes like skipping assessment, focusing only on cost, not comparing multiple providers and ignoring policy exclusions.

• Skipping a needs assessment: Many employers choose plans without evaluating employees’ actual health, dental, and wellness needs, leading to gaps in coverage
• Focusing only on cost: Choosing the cheapest plan may save in the short term, but can result in inadequate benefits and low employee satisfaction
• Not comparing multiple providers: Failing to shop around limits your bargaining power and can cause you to miss out on better coverage or lower premiums
• Ignoring policy exclusions: Overlooking what’s not covered can lead to unexpected out-of-pocket expenses for employees
• Underestimating plan flexibility: A rigid plan without optional add-ons can make it harder to accommodate diverse employee needs
• Skipping professional advice: Avoiding brokers or advisors may result in missing tailored solutions and hidden savings
• Failing to educate employees: Without proper communication, employees may not understand or use their benefits effectively
• Neglecting regular plan reviews: Market rates, employee needs, and regulations change; not reviewing annually can lock you into an outdated plan
• Overlooking tax implications: Not understanding taxable vs. non-taxable benefits can cause compliance issues and unexpected costs
• Not considering long-term scalability: Choosing a plan that doesn’t grow with your team can lead to costly replacements later

How to get the best group insurance quotes in Canada?

Finding the right group insurance plan isn’t just about comparing prices. It’s about securing long-term value for your employees and your organization. The smartest way to get the best quotes is to explore multiple providers, compare coverage features, and match them with your team’s needs.

At PolicyAdvisor, we take the guesswork out of this process by partnering with top group insurance companies in Canada and tailoring plans for organizations of every size, from hospitals and clinics to small startups.

Here’s how we help you buy the best group insurance policies in Canada:

• We work with Canada’s top group benefits companies to bring you competitive rates and reliable coverage
• We match coverage to your workforce size, industry risks, and benefit priorities, even for smaller teams consisting of only 2 employees
• Our licensed advisors explain plan features, cost-saving strategies, and legal requirements in clear language
• You can access free, no-obligation quotes that help you compare multiple offers without any commitment
• We provide dedicated after-sales support to keep your coverage relevant as your business grows