If enacted as proposed, the Federal Budget will make employer contributions to premiums for group accidental death and dismemberment insurance and group critical illness insurance taxable income in the hands of employees for premiums that are paid after the budget date (March 29, 2012) but that relate to coverage that begins on or after Jan. 1, 2013.

This is similar to how employer contributions to group life insurance premiums are taxable income in the hands of employees.  The tax treatment of private health services plans, group life insurance plans and group disability insurance plans are not affected by this proposal.

In the event that this goes through as proposed, to maximize the tax effectiveness of your group plan,  at that point, Bennett Insurance will recommend that the all Plan Sponsors change their group AD&D and group CI premiums from “employer-paid” to “employee-paid.”

This is all of the information we have at this time.  More details will be sent, as information becomes available.

Sunlife – Mobile Apps

Should you have any questions about updating employee salaries, please feel free to contact Janice Clost or Lenny Unisa at Bennett Insurance Agency Limited and we will be pleased to assist.  See below for a specific bulletin from the vaious insurance carriers regarding this topic.

Empire Life – Salary Updates Bulletin-BL

GWL – Important Claims Information

November 29, 2011

Continued commitment to Group Insurance in light of changes to retail product offering 

Dear Group Insurance customer, 

Today we announced a change to our retail offering in order to continue sharpening our strategic focus on the long-term savings and investment market for retail customers. Effective January 1, 2012, Standard Life will stop selling individual life insurance and critical illness products but we will continue to service our in-force block of life insurance business. 

We would like to reassure you that this change will not impact the ability for your members to convert to a Standard Life individual life insurance policy and the process remains unchanged. 

Standard Life continues to be committed to providing you with excellent service. Should you have any questions, please contact your advisor [Bennett Insurance Agency Limited] or your Standard Life Customer Relationship Manager. 

This is a milestone in the strategy that we started deploying in 2005. We want to bring more focus to our activities in those areas of our business which have the best potential for sustainable growth – namely retail investments including Standard Life Mutual Funds, group savings and retirement plans and group benefits and disability management. 

I take this opportunity to thank you for your support over the years and wish that Standard Life can continue building on our partnership to grow our businesses. 

Sincerely, 

Joseph Iannicelli 

President and CEO 

This decision could impact some of your plan members in Quebec as we are changing the way we process death claims involving minor beneficiaries in Quebec as a result of this court case.

Only parent(s) or legal guardian can administer death benefits proceeds

Currently, when a member names a minor beneficiary, they are also able to name an individual (an “administrator”or “trustee”) other than the parent(s) (or other legal guardian when applicable) to manage the proceeds on behalf of the child until that child reaches age 18.

In some cases – commonly when parents are separated or divorced – the member may wish to name someone other than the other parent of the child as the administrator/trustee, as they do not want the other parent to manage the child’s proceeds.

The Quebec court has ruled that when a death benefit under a life insurance policy is payable to a minor beneficiary, it must be paid to the child’s parent(s) (or other legal guardian when applicable) and not to any other administrator/trustee named under the life insurance policy.

Further to this ruling, in Quebec where the beneficiary of a life insurance policy is a minor at the time of an insured’s death, [Sunlife] will pay the proceeds to the parent(s) (or other legal guardian if applicable), and not to anyone else who might be named as administrator/trustee of the proceeds. This change is effective immediately.

For members who wish to have another person to administer the child’s proceeds, they should ensure they have the proper provisions in their will.

Please see below link for a communication PDF that you can use to inform your employees.

Sunlife – Focus Update Quebec Employees & Minor Benef’s

Sunlife – Focus Update Increase to Quebec Sales Tax

See attached article for more carrier specific information on how this may affect your Short Term Disability Insurance Program (Weekly Income Program).  Should you have any questions, please feel free to contact any member of the Bennett Insurance Team.

GWL – Federal government changes EI maximum

Sunlife – Focus Update 2011 EI Maximum Increase

GWL – Quebec to lower generic drug prices

Should you have any questions, please feel free to contact any member of the Bennett Insurance Team.

Please click on the appropriate link below for your Insurance Carrier’s update to determine how this change will impact your coverage.  Please feel free to contact any member of the Bennett Insurance Team should you have any questions.

Standard Life – Assisted reproduction in Quebec

Empire Life – Assisted Reproduction in Quebec Legislative Changes

Desjardins Financial – Assisted Reproduction in Quebec Legislative Changes

SunLife – Assisted reproduction in Quebec

Manulife Financial – Assisted reproduction in Quebec

GWL – Assisted Reproduction in Quebec Legislative Changes

Other Carrier Updates will be added as they become available.  Updates expected shortly.