How to Select the Right Level of Coverage as an Employee

With 72% of Canadian small businesses offering benefit plans to their employees, there are going to be situations where a couple both have access to benefits through their employer. When someone has access to a benefit plan through a partner, they are given the option, do they join the plan or do they waive their health and dental coverage? While the answer is entirely dependent on circumstances and there is no one answer, there are a few things that you can consider to help make that decision.

The first step is understanding your benefits plan. Asking for the plan coverage details so you can compare it to your partner’s coverage. Understanding if there is a cost involved and what the cost is. These two items will help you formulate a decision. You can start asking yourself these questions: Who has more extensive coverage?  Is one plan 100% employer paid? Are both 100% paid?  Do both require you to pay a portion? Does it make sense to be covered under both plans?

Once you have a good understanding of the plan coverage and the costs associated with the plan, you can start to decide if being covered under both plans makes sense. Family coverage under the two plans does have its advantages. It could double the available coverage and allow you to coordinate your benefits with your partner. In a situation where both plans are covered at 80%, the extra 20% can be submitted to the other plan, essentially providing 100% coverage. You also have access to additional benefits. If both plans offer $500 for a massage therapist, you now have access to $1,000 of coverage. This additional coverage can go a long way for families in need. However, you must remember that this additional coverage can come at a cost. 

The next option to consider is waiving one plan and taking family coverage on the other. This option is quite common but as mentioned above, it is important to understand the plans and cost before making this decision. Would you prefer more extensive coverage where the employee pays a portion of the premium or a more basic plan and the employer pays 100%?   

Finally, there is also the option to both take single coverage. This doesn’t work in a situation where dependent children are involved. Again, this requires you to understand your plan and the costs associated with it. It could be most cost effective to be on your own plan and could provide you with similar coverage. If your situation changes in the future and you need family coverage to include a child or two, you will be able to update your coverage. Once again, you can make an informed decision as long as you have done the work to understand your coverage and costs.