Group Life Insurance: What is it?
Group Life insurance is a single policy that allows many members of an organisation (usually an employment group) to purchase a life insurance policy with competitive wholesale premium rates, offering minimal or no medical underwriting and simple administration provided by your broker.
Who Needs Group Life Insurance?
Any responsible employer should offer group life insurance to their employees. No company can afford to pay salaries to absent staff for long periods of time due to illness or injury. Group life insurance ensures that you won’t have to.
Why Take Group Life Insurance?
By providing a Group Life or Salary Continuance insurance policy to your employees, you will be giving them valuable protection for themselves and their families.
You will also be providing an invaluable benefit to your business protecting against unforeseen extended sick leave expenses.
You will also providing financial protection and risk management for your organisation, to protect against unforeseen extended sick leave expenses.
It also negates any moral or financial dilemma you face as to whether to continue to pay a sick or injured employee.
How Much Will It Cost?
Premiums are usually less than you would expect. As a general rule of thumb, the premium should cost you less than 1% of your total payroll.
How much could it cost you not have this insurance?
How Many Members Do I Need?
Some policies allow groups as small as ten people to join, whilst others require a minimum of 200 or more. If you have a group smaller than this, speak to an experienced Lifebroker consultant who can tailor a retail product to suit your business.
Are There Any Tax Implications?
The premiums are fully tax deductible to the company, you can insure as much as 75% of each member’s gross salary and the best part is benefits don’t attract any fringe benefits tax or GST.