Should small businesses offer health and dental plans?

Every small businesses should investigate the value of offering health and dental plans to their employees for several compelling reasons:

Competitive Advantage: Offering health and dental benefits can give small businesses a competitive edge in attracting and retaining top talent. In a competitive job market, prospective employees often consider the availability of benefits when evaluating potential employers. By providing these benefits, you can make your business more attractive to skilled workers.

Employee Retention: Offering health and dental plans can help retain valuable employees. When employees have access to these benefits, they are more likely to stay with the company for the long term, reducing turnover and the associated costs of recruitment and training.

Tax Benefits: In Canada, employer contributions to health and dental plans are generally considered a non-taxable employment benefit. This means that both the employer and employees can benefit from tax advantages, as premiums paid by the employer are typically tax-deductible, and benefits received by employees are not considered taxable income.

Enhanced Employee Wellness: Health and dental coverage contribute to the overall health and well-being of employees. Regular check-ups, preventative care, and access to dental services can help employees stay healthy, reducing absenteeism due to illness and promoting productivity.

Lower Absenteeism: Employees with health and dental benefits are more likely to address health issues promptly, reducing the number of sick days taken. This can help maintain productivity and minimize disruptions to the business.

Employee Satisfaction: Providing health and dental coverage demonstrates that you value and care for your employees. This can boost morale, job satisfaction, and overall workplace happiness, leading to increased productivity and a positive work environment.

Positive Company Image: A small business that offers health and dental benefits is often seen as a responsible and caring employer. This positive image can enhance your brand, reputation, and relationships with customers, partners, and the local community.

Recruitment Success: Access to health and dental plans can help you attract candidates who might otherwise overlook small businesses for larger employers who offer benefit packages. It can also attract candidates who place a high value on their health and well-being.

Customization: Small businesses can tailor health and dental plans to suit their specific needs and budget. This allows for flexibility in selecting coverage options that align with your employees' requirements and your financial constraints.

If you have any general questions or would like to learn more about health and dental plans for small business I invite you to contact me today.

Please note: As an insurance broker, at Bequest Insurance we also offer a variety of small business health and dental plans.

Jack Bergmans CFP

Certified Financial Planner/ Founding Partner 

Life Insurance & Estate Consultant

Bequest Insurance

jack@bequestinsurance.ca

Phone: (416) 356-4511 

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Quick estate planning tips that can help with a smooth transition

Planning for your estate is a practical gift that you can leave for your family, heirs and charities.

Here is a short list of some common estate snags that you can avoid with just a little bit of planning.

1. Get a Will. 

i)In general, in most jurisdictions dying without a Will means that your estate will be distributed by the courts in a rigidly prescribed manner which neither you nor your survivors have any control over. 

Having a Will avoids having your estate being distributed to people you didn't intend to give money to.

ii) Powers of attorney for your financial affairs and health care are very important additional items that you walk out of your lawyers office with when you make out your Will. These may seem like throwaway items at the time but can become extremely important documents that can have a dramatic influence for many years of your life, long before you pass away. 

Though not technically an estate snag, having powers of attorney in place avoids giving up control over these important life matters and can often help to avoid potential abuse of your assets while you are alive.  

2. Review and update your Will.

Over time things in life change. Births, deaths, preferences, divorce, remarriage and the charities you support are just a few things that should be considered. A rule of thumb is to review your Will at least once every 5 years.   Be sure to share any changes with your financial advisor who should be able to help you protect your assets and get the most out of your estate for your heirs. 

Like getting a Will in the first place, updating your Will avoids your estate being distributed to people you didn't intend to give your money to.

3. Probate.  

Thankfully there are exceptions however in general,  when you die most of your assets instantly belong to a new legal entity that's referred to as your estate, known as 'the estate of ... '. In most jurisdictions 'the estate of ...' must go through the probate process before it can be distributed. Probate is time consuming and expensive, reducing the value of your estate while your executor has little if any control over it. In general, your estate can't be accessed by your heirs until it clears probate which includes paying probate taxes and legal fees etc. 

If your estate is simple, probate can often take six to nine months or more; in more complicated cases it can literally take years. In particular, if you expect that your heirs will quickly need access to your estate assets to pay the bills etc. ask your financial advisor about setting aside money that sidesteps being included in your estate and avoids the probate process entirely.  

Avoiding probate where ever practical avoids putting a lot of unnecessary stresses on your survivors and allows 'the estate of....'  to flow quickly and smoothly to your intended heirs.