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Mandatory insurance at work

  • Last Updated:
  • Oct 13th, 2017 8:30 am
[OP]
Member
Nov 9, 2008
493 posts
63 upvotes
Ottawa

Mandatory insurance at work

Started a new job two months ago and noticed I am
Now paying $200 a month for a "weekly indemnity and long term disability insurance". I never paid for this before... it was part of my contract that the employer would pay for health insurance and I would pay for this disability thing... but the amount wasnt there. I thought it would be much cheaper. I thought health insurance would cost more.

I think there is a mistake simply because i think $200 a month is too much. But i have nothing to compare it with. I recall seeing private health insurance plans a while ago... for less. So i assumed long term would be a fraction of that cost

I asked HR and they will confirm shortly but can anyone tell me if the cost makes sense?

Please dont tell me it was a mistake to assume. I know.

I have the option to opt out of the whole thing including health...only if i can get other insurance elsewhere. No way to just opt out of this part
8 replies
Deal Addict
User avatar
Apr 1, 2001
4512 posts
189 upvotes
Not sure what the weekly indemnity insurance is. For the disability insurance, would really have to find out the details of your plan. For example, some companies make you buy a mandatory "own occupation" plan, which can be costly. However, most companies will simply have an "any occupation" type plan, for a much lower cost.
Deal Addict
User avatar
Feb 19, 2010
4596 posts
1537 upvotes
LTD insurance is expensive and would be a function of your salary.

The reason you pay the premiums is that should you ever need to collect on it, the proceeds are tax free. If the employer pays the premiums they are taxable.
[OP]
Member
Nov 9, 2008
493 posts
63 upvotes
Ottawa
Thanks. Good to know there is a reason to this. And that it is expensive in general.

Sunlife sells insurance with worse conditions for 5% of your salary. I thought group insurance would be cheaper. Maybe it is..because it has better coverage/benefits.

I hope someone here will be able to give me an idea..about group plan costs. i just need to know if there is a mistake. HRs answer to anything seems to be "yeah yeah we dont make mistakes"
Newbie
Jan 1, 2017
92 posts
39 upvotes
Can't you ask your coworkers what they are being charged?
Deal Expert
User avatar
Jun 9, 2003
23339 posts
1083 upvotes
Markham, ON
another reason is that your company has a past history of a lot of workers going into LTD (guessing)...and all the current employees are paying the price...unfortunately.


where i work...there are options for each employee...different plans and different price points. Some ppl don't need many of the benefits...and get a lower plan at a lower cost.
Member
Jul 15, 2003
459 posts
64 upvotes
GTA, Ontario
I work at a place where I need to pay into LTD as well. It was unfortunately part of the union agreement and we are stuck with it. I pay about $100/mth. Obviously, the amount is based on my salary (if it was higher, it would be higher, likewise if it was lower).

I do agree that it is high, but unfortunately there isn't anything I can do about it other than look for another job.
Newbie
Aug 22, 2015
7 posts
2 upvotes
Mississauga
You premium is very cheap....I am paying much more and they keep increasing.
Deal Addict
User avatar
Dec 3, 2006
1323 posts
70 upvotes
GTA
premium of $200 / month seems a bit high, but the premium depends on what the payout is.

What % of salary do you get paid if you go in to LTD? (It is usually something like 50%/75%/100% of your salary up to $xxxxx).

So, $200 / month seems ok for 100% of salary, but too high for 50% of salary paid out.
Since you're paying the premium, you won't be taxed if you collect LTD.

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