Group Income Protection - Salary Continuance Insurance
Group salary continuance insurance is a single policy that allows many members of a company to purchase a group salary continuance insurance policy with competitive wholesale premium rates, offering minimal or no medical underwriting and simple administration provided by your broker
The policy will offer a benefit of up to 75% of each member’s salary, payable if they are unable to work due to illness or injury. The benefit is payable after the waiting period of your choosing and payable for the benefit period of your choosing.
Why Use Salary Continuance Insurance?
By providing Group Salary Continuance insurance to your employees, you will be providing them valuable protection for their incomes, offering an incentive that is likely to promote loyalty and thus providing a benefit to your business.
You will be implementing a smart risk management plan so that in the event that a staff member cannot work for an extended period the impact on the business is minimised.
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?
Usually, premiums cost no more than 1% of the yearly payroll.
How Many Members Do We Need to Obtain a Policy?
Insurers will offer policies to groups with as few as 10 members. There is no limit to the number of staff you can insure on a group policy.
How Long Will the Policy Pay Out If My Employee is Sick?
You can select the benefit period on the policy. The options range from 2 years through to the age of 65. The premium is dependent on the benefit period.
When Will the Policy Begin to Pay Benefits to an Employee?
The benefit payments will begin after the waiting period. You are able to choose the waiting period yourself. These range from 14 days through to 2 years. Many employers select a 90 day waiting period, as they cover the salary for the first 3 months then benefit payments begin.
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 benefits don’t attract any fringe benefits tax (FBT) or GST.