Health and Welfare Trust

Health and Welfare Trust (HWT) is a plan that facilitates self-employed individuals and incorporated companies through paying their health and dental expenses in a tax-effective and cost-efficient manner.
Health and Welfare Trust works very differently than traditional group or individual health and dental insurance programs. In this innovative benefit package, no ongoing monthly premium payments are required following a onetime set-up fee($250).

A company enters into a contract with an insurance company for the indemnification of an employee’s health/dental benefits, whereby the company agrees to provide funding for these expense amounts and the applicable fees and taxes up to a limit the company sets in advance. The total amount paid by the company is 100% tax-deductible to the business and the employees receive a tax free benefit.
For the government to accept medical bills as business expense the plan must be one that is based on insurance principles. The principle is that funds must be accumulated in the hands of trustees or in a trust account calculated to be sufficient to meet anticipated needs.

The reason I am offering this product to small businesses is Many small businesses have investigated health and dental coverage but did not pursue it for the following reasons:

  • Company was too small to have real “purchasing power” with the insurance companies
  • Company was too new or in an industry where insurers are not interested in providing benefits
  • The majority of their workforce had coverage through spousal plans
  • Their workforce wanted control over where they could use funds without being restricted by co-insurance or low maximums in each category (i.e. dental, vision care, chiropractic etc.)

So I am offering this product to small businesses because there is no restriction to any of these matters, There is no monthly premium and Business will pay for healthcare, Cover most of medical expenses which normal group products doesn’t cover them, Create deduction against business income, give them tax-free benefit on the personal side and SAVE the business owner TAXES.
How much is the fee?

there is one time set-up fee of $250 payable to Administration company and there are NO per employee charges at set up. 10% administration fee for each claim submitted to HUB Financial Inc plus applicable taxes depending on province of residence (HST of 12% required on the administration fee for British Columbia). For example, for a $1,000 dental bill, HUB will charge a $100 processing fee and $5 for GST.

I found Hub Financial Inc., a brokerage with offices across Canada to be the company with expertise in Handling the administration of HWT in an efficient and professional manner. FlexSave™ is the name of their Health and Welfare Trust product.

Please have a look on attached brochure and should you have any question do not hesitate to contact me.


"Mahshid Helped me to understand the taxation in BC , my needs as a real estate agent and employer, and the benefits I could have. She found us a great plan to accommodate all our needs as well as maximizing our profits. She was understanding, professional, and concise."
— Sam Mehrbod