Group Life Insurance

What is Group Life insurance?

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, as well as minimal or no medical underwriting and simple administration provided by your broker.

The cover that you provide your members is up to you. You may choose life insurance, total and permanent disability (TPD) or even group salary continuance (income protection).

Who should take a Group Life insurance policy?

Any responsible employer will offer group life insurance to their employees. If your company could not afford to pay salaries to staff that are absent from work, through sickness or illness for long periods of time, then you should consider group insurance.

Why should I 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 their families.

You will also be providing an invaluable benefit to your business. For example if you have a highly skilled, long term employee that becomes sick or suffers an injury outside the workplace, you will have the peace of mind knowing that you won’t lose them.

You are 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 me?

Premiums are usually very reasonable. As a general rule of thumb, the premium should cost you less than 1% of your total payroll.

How much would it cost you to not have this insurance?

Are there any tax implications I need to be aware of?

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 (FBT) or GST.

How many members do I need to obtain a policy?

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 experience Lifebroker consultant who can tailor a retail product to suit your business.

Find out more answers to other frequently asked questions about group insurance.

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