Cost of Group Insurance

The cost of a group insurance plan is usually stated in terms of premiums. For each type of coverage, one or several rates are set by the plan insurer. The total premium is calculated by multiplying the premium rates by the volumes applicable to each type of coverage.

The average annual premium for a group insurance plan normally ranges between $1,500 and $4,000 per employee. Typically, the premium payments are shared between employer and employees and optimized in order to minimize the tax impact for employees.

The cost of group insurance is affected by several factors specific to the employer, the insured and their plan, such as:

  • Demographics of the insured (age, gender, marital status)
  • Salary
  • Type of industry
  • Types of coverage offered (dental care, short-term disability, etc.)
  • Levels of coverage (co-pay, deductible, maximum, insured volumes, etc.)
  • Use of plan (claims experience)

Costs are also strongly impacted by other less tangible factors, such as the quality of negotiations with the insurer, a recent call for tenders, the competitiveness of insurance market, etc.

AGA Benefit Solutions advisors can help you set up a plan that meets the needs of your employees at the best possible cost. This process can be summed up in three simple steps:

  • Determine required coverage.
  • Obtain quotes from insurers.
  • Communicate plan information to your employees.

Are you ready to implement a plan for you and your employees? Please fill our form "Get a quote"