Why Group Insurance?

Group Insurance PoliciesGroup Insurance safeguards a company’s most valuable assets: its people. Members of group insurance plans are insured in the event that they die or are diagnosed with a terminal illness, or suffer from a partial or total disablement from sickness or injury and cannot work, either temporarily or permanently. Members have peace of mind that they are covered 24 hours per day, 7 days per week, even when they are not working.

Group Insurance is a tremendous employee benefit simply because it makes a material impact on the financial futures of insured members.

Group insurance structures

Group insurance policies can be structured inside or outside superannuation. 

Types of group insurance policies available

The types of group cover available include:

  1. Group Salary Continuance (GSC) provides an income stream (up to 75% of insured member's pre-disability income) if members are unable to work (either temporarily or permanently) due to sickness or injury.
  2. Group Life & TPD (GL): provides lump sum benefits in the event of death or total and permanent disablement of members.

Trauma Cover is usually not offered under group schemes.

Benefits to employers or funds 

Product advantages:

  • Automatic Acceptance Levels which means no underwriting for members up to pre-defined limits.
  • Cheaper premium rates
  • Approximately 1% of payroll cost covers 100% of employee lives
  • Unlike workers' compensation, group insurance covers employees even when they are not at work
  • Guaranteed renewal period (for example, up to 3 years)
  • Addresses the issue of Underinsurance through Group Insurance
  • Innovative ancillary benefits can be provided
  • Continuous reviews means that benefits are based on employee's or member's salary at the time of claim.

 

Overall advantages:

  • Improves staff morale
  • A stand out benefit for companies known for being 'employers of choice'
  • Helps to attract and retain staff
  • Minimal administration
  • Tax advantages
  • Guaranteed level of cover  

Download our Employer Flyer and contact us today.

To find out more, contact AGI.