The Benefits of Having an Employee Benefit Plan

Jan 18, 2016

You may recall the monthly deductions on your paystub that read LTD, CI, EHC or a number of other abbreviations which lower your take-home pay. You know you can’t do anything about the federal deductions, but you may be tempted to opt out of the employee benefit plan as a way to boost your disposable income. It’s the right thing to do?

WRONG! Your compensation isn’t just your regular salary as it includes the employer paid portion of all employee benefits premiums, pension contributions and training and education costs. If you decline the benefits plan, you could be foregoing part of your total compensation package.

Without a benefits plan, you would have to pay for uncovered dental and day-to-day health expenses—with after-tax income. From an employee’s point of view, this is just one of the many benefits of being on the benefit plan. Here are a few more:

  • Adds financial security to you and your family
  • Eliminates the need to complete any health requirements to be on the plan
  • Offers more robust coverage and at a lower rate through a group plan than in the individual insurance market
  • Gives access to insurance products that might not be available on an individual basis e.g. long-term disability
  • Provides out-of-country emergency health care for business or pleasure travel so there is no need to purchase individual travel insurance
  • Offers the option to convert the group life insurance to a private plan with no requirement for a health statement or exam
  • Works out to be more financially beneficial than getting a raise because there are no additional increases in CPPEI deductions

So the next time you look at your paystub, hopefully you will look at those abbreviations with a clearer set of eyes and realize that being on the benefit plan actually increases your take-home pay.

blog rss subscribe button


Jump to:

Place content block here for staff contact info
Place content block here for social media links


Group Benefit Plan Administration – Be a Superhero

By Neil Wallace on September 1, 2015


You Think Good Health is Only Physical?

By Neil Wallace on March 28, 2017



Place content block here. Add accent and heading in editor.

What Does My Group Benefit Plan Cover?

By Neil Wallace on May 4, 2015

Generational Differences

By Neil Wallace on October 14, 2014

Plan Administrators – Due Diligence

By Neil Wallace on July 21, 2014

What are CAP Guidelines?

By Neil Wallace on April 21, 2014

Stop Loss

By Neil Wallace on December 18, 2012

Fully Insured

By Neil Wallace on September 17, 2012

Retention Accounting

By Neil Wallace on June 12, 2012

Self Insurance

By Neil Wallace on March 6, 2012


Learn how Neil can help with your group benefits.

Phone 604.714.4641, email or send a message.

Message for Neil