Illustration | Better support to meet Executive Health Plan (EHP) criteria

Desjardins Insurance April 19, 2022

From now on, when you offer the Health priorities – Business product, your illustration software will automatically ask you to identify the 2 policyowners (company and shareholder/key employee).

Information bubbles have also been added to better support you in the process.

If the EHP concept rules are not being followed, a note will be added under the Premium Allocation section of the coverage summary in the illustration:

We'd like to remind you that the Executive Health Plan requires both a company and a shareholder or key employee. Since we didn't receive your company's information, you are currently considered to be the only policyowner on the contract. You'll need to pay the above-mentioned portion of the company's premium, as well as your portion of the premium. We strongly recommend adding your company as a second policyowner by contacting your representative within 12 months of the contract issue date. Once you've added your company, we recommend that you don't get reimbursed for the portion of the company's premium, because it could have negative tax consequences.

These adjustments will give you all the information you need to issue policies correctly the first time. This will reduce the time it takes to review insurance applications and give you and your clients a better experience.

Business not yet registered?

Here's how to avoid processing delays:

  1. Leave the "Business Name" field blank.
    Since some applications are automated, if you enter information in this field, the policy may be issued with the information you enter.
  2. Remove the business policyowner.
  3. Select at least 1 policyowner from among the proposed insureds you've already added.

Once the business is registered, you can make it a policyowner by filling out a Request for Change of Policyowner – 09614A form.

What is the EHP?

The EHP allows owners of businesses incorporated as Canadian-controlled companies to hold critical illness insurance jointly with their company. The company and the insured share the financial advantages and tax obligations. Premiums are allocated according to an actuarial formula.

To learn more about this concept, see Webi or contact your Desjardins Insurance regional sales director.


Desjardins Insurance