Your “Savvy Retiree” Newsletter for November 2024
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The annual renewal of your group insurance is an essential exercise to ensure the sustainability of the plan.
According to the experience report covering the period from July 2023 to June 2024, there has been an increase in the number of claims in 2024, as well as a significant rise in rates for certain medical services and health products. For example, in 2022, there were 398 claims for the Convalescent Home coverage, while in 2023, this number rose to 722. Similarly, the number of claims for X-rays has doubled. Therefore, it would be reasonable to anticipate an increase in premiums. The amount of the premium, whether it is rising or falling, always stems from the number of claims.
In the face of these financial challenges, it will be essential to make informed decisions to maintain the financial viability of our group plan. In particular, it is crucial to preserve an appropriate stabilization fund, which ensures the financial stability of the plan and allows for the coverage of fluctuations in benefit costs.
We will keep you informed of developments, especially in December when the premium cost is confirmed. Thank you for your understanding and cooperation.
Daniel Dubé
ACR's Retiree Spokesperson
Relevant Articles:
The May newsletter addressed the topic of power of attorney. Many readers expressed a desire to see a sample text.
_________________________________________________________________________
I, the undersigned, Mrs. or Mr. [name],
residing at [address],
authorize [name, relationship, date of birth, address]
to manage my group insurance policy, certificate number [certificate number]
held with Beneva, and to carry out any transactions they deem necessary concerning my policy.
This authorization is valid until notice stating otherwise is received. A certified copy of this power of attorney holds the same value as the original document.
In witness whereof, I have signed in [city], on [date].
[signature]
_________________________________________________________________________
We recommend sending your power of attorney to Beneva by registered mail, with a return receipt to confirm delivery.
The life insurance plan offered to retirees is optional, but understanding how it works is essential to avoid unpleasant surprises. A key feature to keep in mind is the reduction of the insured capital based on age. Indeed, the contract stipulates that at 75 years old, the insured capital automatically decreases to 75% of its initial amount, and then to 50% when the policyholder reaches 80 years of age. This is an important point to consider when assessing the amount of coverage that you or your loved ones could receive upon death.
Furthermore, it is essential to note that the insurance premium will increase every five years with age. The death benefit will be paid to the designated beneficiary or, in their absence, to the policyholder's estate.
In the event of death, the insurer must be notified in writing or by phone within 90 days of the date of death. If notification is made in writing, it is recommended to send the notice by registered mail to ensure proof of mailing and receipt.
Finally, for the surviving spouse wishing to maintain life insurance protection for dependent children, it is imperative to inform the insurer within 31 days following the death of the primary policyholder.
Unclaimed Life Insurance Cases: There are situations where beneficiaries are unaware of the existence of a life insurance policy. In Quebec, legislation requires insurance companies to maintain complete records of all life insurance policies issued. Insurers are also obligated to conduct regular searches for a period of 3 years to locate designated beneficiaries. After this period, the policy must be classified as unclaimed and transferred to the Registry of Unclaimed Property.
Beneva conducts verifications to validate the eligibility for reimbursement of a provider’s fees based on the criteria established in your group insurance contract.
A list of providers whose fees are not reimbursed is available in your Customer Centre. It is updated regularly to allow you to check that the providers you work with are not on the list; otherwise, your claim will be denied.
For example, two foot orthotics providers, massage therapists, and naturopaths are listed among the providers ineligible for claims.
Line St-Cyr, Coordinator, ACR