IFA – Group Insurance Solutions

Flexible, tax-efficient, and cost-controlled benefits specifically designed for small teams and growing businesses in Canada.

What Is an IFA?

An Individual Flex Account (IFA)—often referred to as a Health Spending Account—is a modern alternative to rigid traditional benefits. Instead of paying unpredictable premiums, you set a budget, and your employees choose how to spend it.

Employer sets a fixed annual budget per employee
Employees use allocation for eligible expenses
Reimbursements are 100% tax-efficient
Only pay for actual claims—not unused insurance

Ideal For:

Small Businesses (1–20 emps)
High-Growth Startups
Family-Owned Businesses
Incorporated Professionals

Accountant's Favorite: IFAs provide total budget certainty. You know exactly what your maximum benefit expense will be for the year.

How IFA Works

Employer Sets Budget

Choose an annual allowance per employee (e.g. $2,000). You can vary the amount based on role or seniority.

Employees Submit Claims

Employees submit medical receipts for expenses not covered by provincial plans (like OHIP).

Reimbursement

Approved expenses are reimbursed from the account. You only pay for what's actually claimed.

What Expenses Are Covered?

IFA covers a vast range of CRA-approved medical expenses for you and your dependents.

Prescription Drugs

Dental Services

Vision Care

Physiotherapy

Chiropractic

Psychologists

Medical Devices

Travel Medical

IFA vs Traditional Plans

Feature	IFA	Traditional Group Plan
Cost Control	Fixed budget	Variable premiums
Flexibility	High (Employee choice)	Limited (Set coverage)
Predictability	Very predictable	Can increase annually
Claims Risk	Employer pays actual use	Insurer spreads risk
Ideal For	Small teams / Startups	Larger organizations

Strategic Tax Advantages

For Employers

Contributions are generally 100% tax-deductible business expenses.

For Employees

Reimbursements are typically received as a 100% tax-free benefit.

Cost Efficiency

A much more efficient way to compensate than a tradition salary increase.

Frequently Asked Questions

Yes — IFA is often structured as a Health Spending Account (HSA) under Canadian tax rules, providing a tax-efficient way to offer healthcare benefits.

Yes. Incorporated business owners often use IFA as a tax-efficient medical expense solution for themselves and their families.

Not necessarily. Many businesses combine a basic Extended Health plan (for catastrophic coverage) with an IFA for everyday flexibility and balanced protection.

Typically no. Since IFA is a reimbursement-based account rather than insurance, there is no medical underwriting required for employees to join.

Employer Advantages

Predictable budgeting (no surprise hikes)
Simple administration & zero underwriting
High employee satisfaction via choice
Scalable as your business grows

Key Considerations

Employer assumes claim usage risk up to budget
Requires clear communication of "flex" concept
Not a full replacement for catastrophic coverage

Modernize Your Company Benefits

Ready to take control of your benefits budget while wowing your team? Let our experts design your custom IFA strategy today.