March/April 2008, Contractor Advantage Magazine
Major Expansion Plans
Three levels of health coverage and a new tax-smart option for small contractors have recently been introduced.
By Mark Beckham
In the previous issue of Contractor Advantage we were excited to introduce you to Castle's Castlecare Group Employee Benefits program for Contractors. Initial response has been overwhelming. It is clear that contractors like yourself are very interested in acquiring Life Insurance, Accidental Death and Dismemberment, Critical Illness, Extended Health Care and Dental coverage for themselves, their families and their employees.
One of the attractive features of Castlecare is that it is 'premium sensitive.' In other words, the coverages are based on your budget.
We created three levels of coverage: The Bronze package provides basic benefits. Silver provides more. Gold provides the highest level of coverage.
Naturally, each higher level is more expensive, however, do not forget that many companies share the premium cost with their employees 50/50, so your company would only need to pay half of the total premium of the plan you choose.
Like all insurance coverage, Castlecare premiums are based on the cost of claims. Castlecare coverage for contractors pools all claims and premiums are derived from that experience. What this means to you is that your premium is based on the claims of all participating contractors, not just yourself and your employees. All persons insured by Castlecare will pay the same rates and have a common renewal date where rates will be adjusted.
As mentioned in the previous issue of Contractor Advantage, to be eligible for Castlecare coverage you must have three employees or more working a minimum of 20 hours per week.
We realize many contractors do not meet the three employee minimum so we are offering a program that provides tax effective coverage to small (fewer than three employees) businesses. This program allows you, as an owner of a company, to pay for health and/or dental costs with 'before tax dollars.'
The program we are introducing is not new but is relatively unknown. It is called 'Cost Plus.' For example, say you need a dental crown that costs $1,000. To pay that $1,000 in after tax dollars you must earn roughly $1,500. Here is how you would pay for the $1,000 crown using Cost Plus. You pay the $1,000 to your dentist then send the receipt plus a cheque for $1,100 ($1,000 for the crown, and 10% or $100 for administrative fees, to Benefits by Design.). BBD then sends you a cheque for $1,000 to reimburse you for the out of pocket expense. Your company can expense the $1,100. So effectively you end up paying the $1,000 with less expensive corporate dollars. Any expense can be put in for reimbursement. Drugs, dental care, glasses, chiropractor or massage therapy, virtually all expenses that are recognized by Canada Revenue Agency as an eligible medical expense. (You can visit our Web site for the complete list.)
Contractors are a group that has traditionally found it hard to get coverage at an affordable price.
Castlecare Group Benefits fills that gap thanks to Castle Building Centres Group Ltd. If you would like more information about Castlecare Programs. Or click here if you are ready to get a quote. We will take it from there.
ARCHIVES: Castlecare articles in Contractor Advantage magazine
March/April 2009 How to succeed in tough times
January/February 2009 The Bronze Benefits Plan
November/December 2008 Can you spare 15 minutes?
September/October 2008 It may not be sexy but insurance really matters
July/August 2008 What to look for in a broker
May/June 2008 Benefits can make a difference
March/April 2008 Major expansion plans
January/February 2008 Health Care now available
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