Group Policies

Strength in numbers can be a benefit in business.

Business Insurance

What are group policies?

Group policies exist where an employer gives a collective benefit to employees for life, health, income protection or total permanent disability insurance, or all or any combination of these.

Good people can be hard to find and when you’ve got them, you want to be sure you keep them. One way to inspire their loyalty and encourage long tenure is through group insurance policies. Offering discounts for personal insurance types, and the other benefits that can come from these sorts of policies, can be of significant value to staff. It’s up to each business whether they want to pay the premiums on their employees’ behalf, pay a percentage up to a capped amount, or merely pass the savings onto their staff as a result of their involvement – either way, staff win.

FAQs

  • Do I need to offer all insurance types and to everyone?

    Absolutely not! This is entirely at the business’s discretion. Some companies opt for just one type of insurance – i.e. medical – where others bundle multiple options together for a comprehensive package. In some companies this benefit is reserved as part of the senior leadership team’s package, in others it is open to all employees… Anything goes!

  • Do employees need to be underwritten?

    This is at the discretion of the insurer and all schemes are different. Some will deem there to be big enough numbers that they’ll offer automatic acceptance if everyone enrols in the scheme. Others will require each employee to make an application and be accepted or declined into the scheme on their own merits. This is an area that your advisor can help you navigate.

  • What happens if an employee leaves the business?

    This is based on the terms and conditions of each policy, but there is usually a continuation option for the employee when they leave – so they have the right to take their aspect of the policy (or policies) over individually, as long as they opt to do so within the specified timeframe (usually 30 days).

  • Do group policies include the immediate family of employees?

    Again, this is entirely up to each business. Some choose to extend the offer to employees for their family members and cover those costs, others pass on the benefit and it’s at the employees cost to cover those premiums if they choose to take up the offer.