Group life insurance is best suited to any organisation or business where there is a need for multiple lives to be insured under one common entity. In some organisations there may be a Union requirement or an EBA in place so cover may be mandatory or it may be just part of the employees benefits given by employers.
Group Life insurance is a single policy that allows many members of an organisation (usually an employment group) to purchase an insurance policy with competitive wholesale premium rates, offering minimal or no medical underwriting and simple administration provided by your broker. The cover that you provide through Group Insurance varies, however it may provide Life Insurance, Total and Permanent Disability (TPD) or even Group Salary Continuance (Income Protection).
By providing a Group Life or Salary Continuance insurance policy to your employees, you are providing employees 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.
With the right benefits program in place, businesses can offer employees (including owners) unrivalled security at a low cost to the business. A successful employee benefits program should help to achieve the following:
- Increase employee loyalty, engagement and morale
- Differentiate your employment offering and attract and retain quality employees
- Become and remain an employer of choice
- It also negates any moral or financial dilemma you face as to whether to continue to pay a sick or injured employee.
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. Furthermore, some policies allow groups as small as ten people to join.