Who Assumes the Cost of a Group Insurance Plan?
 

• Group insurance plan premiums may be paid:
   
  • in full by the employer;
  • in part by the employer and in part by the employee;
  • in full by the employee, although this is rare.
     
• At Desjardins Financial Security, we generally recommend that employers contribute, and our plans generally provide for shared payment between the employer and employee.
   

What Determines the Cost of a Group Insurance Plan?
 

• The extent of coverage and the options selected by the insured party (e.g., optional coverage, additional life insurance)
• The types of eligible expenses (e.g., types of drugs and healthcare specialists, etc.)
• The deductible amount and the percentage or reimbursement by the insurer
• Choice of coverage status (individual, single parent or family). Family coverage is more expensive.
   

Average Cost of a Group Insurance Plan
 

• On average, group insurance plans cost between 4% and 5% of the employee's salary.
• The portion of the cost that is assumed by the employee depends on the employer's level of contribution. For example, if the employer pays half the premiums, the employee will only pay the equivalent of 2% to 2.5% of his or her salary.
   

How are Group Insurance Plan Premiums Paid?
 

• The policyholder pays the insurer.
• The employee's portion is paid through payroll deduction.