My employer uses SunLife Financial for their employee benefits. SunLife not only provides us with extended health benefit coverage for services not covered by the government through OHIP (Ontario Health Insurance Plan), but also with life insurance for ourselves, spouses and children.
As mentioned before, there are three life insurance plans available to employees: Individual, Spouse and Child. The amount of coverage for the Individual (or employee) plan is available in $25, 000 increments up to a maximum of three times your base pay. For an additional fee, accidental death and dismemberment (Ad & D) benefits could also be selected for the employee. The Spousal life plan, is also purchased in increments of $25, 000 to a maximum of $200, 000. The Dependent life plan allows you to purchase a lump-sum of $20, 000 per dependent child. No additional Ad & D benefits are available for spouse or child life insurance plans.
The type of insurance policy is Term but has some flexibility. This means that my employer is able to negotiate low monthly premiums that are guaranteed not to increase but still allows employees the option to increase or decrease the amount of coverage needed and plans selected as things change. No health examination was required. I only completed a simple medical questionnaire for myself, spouse and children, then submitted it to HR for processing. Also, coverage is guaranteed regardless of your health or age, as long as you remain an employee.
I pay $6.60 total in monthly premiums, including taxable life benefits, for me and my family. No need to add to SunLife as a bill to pay on my bank account or send them a 'void' cheque. My employer has arranged for the premiums and taxes to be deducted from my pay.
No, this is not the only life insurance plan that I have. Most insurance brokers or advisors will tell you that a life insurance plan outside of your employer's is ideal, but they are costly and you may be declined due to your health. My husband and I are currently paying $70/month combined for our life insurance plans through the bank. However due to group purchasing, my employer can get cheaper premiums and guaranteed Term coverage from SunLife as long as I'm an employee. This saves me money and offers an additional layer of protection for my family.
Visit www.sunlife.ca for more information on group benefits like Life Insurance.