Group insurance protects your company’s most valuable assets: your staff. It insures your employees in the event of suffering partial or total disablement from illness or injury leaving them unable to work either temporarily or permanently, diagnosis of terminal illness or even death. Your employees are protected 24 / 7 even when they’re not at work.

How group insurance works

  1. You as the employer select the type(s) of group insurance, the benefit designs and levels of cover for your staff. Once this is set it may be altered, but only you as the policy owner can change the benefit designs and levels – individual members or employees do not have individual choice. Cover is compulsory for all eligible members.
  2. The employer as policy owner is responsible for the payment of premiums to the insurer.
  3. In the event of a claim, the proceeds are paid to the employer as policy owner for onward remittance to the employee or to the nominated beneficiary(s) of the employee.

    The Benefits

    ▪ Concessional underwriting – automatic acceptance for insurance cover, meaning your employees can be covered up to a certain amount regardless of their medical history, pastimes and smoking status. They can also continue this cover when they leave your employment, subject to certain conditions
    ▪ Protection against costs associated with absent employees
    ▪ Improves staff morale by providing security and peace of mind in the event of injury, illness, permanent incapacity or death
    ▪ Tax effective
    ▪ Wholesale premium rates
    ▪ Secures retirement benefits
    ▪ Guaranteed renewable
    ▪ Customised to your business
    ▪ Group insurance can provide far more comprehensive cover for employees than other types of insurance such as worker’s compensation and health insurance.

    Adviser Services

    Some of the services provided by a professional group insurance adviser include:
    ▪ Tender management and due diligence: getting you a policy that provides great value, tailored to your needs
    ▪ Helping you ensure your staff are underwritten to their maximum available cover and guiding you through the claims process
    ▪ Continuation options – assisting your employees to take up continuation of their cover when they leave your employment
    ▪ Provide your staff with individual financial and insurance advice at their request (at no extra cost to you)
    ▪ Assist you in promoting the benefits to employees. Group insurance can be complex. Enlisting professional advice will save you time, money, and ensure you get a group plan that your employees appreciate.

    All about Group Salary Continuance (GSC)

    Group Salary Continuance provides a monthly benefit (up to 75% of pre-disability income) for an insured employee who is unable to work due to temporary or permanent illness or injury. As the policy owner, employers can choose their plan benefit periods, which range from two years to age 65. Employers can also select from a range of waiting periods, from 30 days up to two years. Premiums are highest on group plans with longer benefit periods and shorter waiting periods. Finally, employers wishing to provide the most comprehensive cover to their staff can choose to add a range of additional benefits to their plan(s), such as trauma benefits, rehabilitation expenses benefits, etc, available for an additional cost.

    Uses and benefits

    Salary continuance is another term for income protection insurance. This insurance is crucial as it protects employees’ lifestyles, helping them continue to meet their financial commitments, such as mortgages, credit card debts, household expenses, children’s school fees, and much more. Your employees will enjoy peace of mind knowing that they will still have an income stream in the unfortunate event that they are disabled and unable to work, either for the short-term or permanently. As an employer, the moral obligation to continue paying your employees in the event that they suffer from protracted illnesses or injuries, but exhausted their income and statutory entitlements - is removed.

    All about Group Life & Total and Permanent Disablement Cover (TPD)

    Group Life pays a lump sum payment on either the death or total and permanent disablement of an insured employee.

    As the policy owner, employers can choose to provide just group life cover, or both life and TPD cover, but cannot choose to offer Group TPD only. Group Life and TPD can be structured inside or outside superannuation, however for taxation reasons, cover inside super is generally preferable. A range of TPD definitions are available to employers, depending on the occupational profile of their group.

    Uses and benefits

    Life and TPD cover is another crucial insurance employee benefit, especially for employees with families to support. Typically proceeds are used by employees’ beneficiaries or estates to pay for funeral costs, extinguish debts, or provide ongoing income for the spouses and children of insured employees. Lump sum benefits can also be advanced in the event an employee is diagnosed with a terminal illness. Finally, TPD as part of a group insurance plan is particularly useful in either eliminating or minimising financial hardship in the event that lifestyle adjustments need to be made by an insured employee and their family (for example, renovating the home for wheelchair access, or paying for in-home care). This provides great peace of mind for your employees, particularly when they are faced with financial pressures and experiencing an emotionally difficult period in their lives.