Group insurance
What is Group Insurance?
Group insurance provides coverage for groups of people, such as employees of a company, members of an association, or members of a superannuation fund. It offers financial protection in the event of death, disablement, or serious illness that prevents a member from working.
Members benefit from cost-effective premiums and enhanced product features, ensuring peace of mind and financial security.
Available products
Group Salary Continuance (GSC)
provides an income stream (up to 75% of insured member's pre-disability income) if members are unable to work (either temporarily or permanently) due to sickness or injury.
Group Life & TPD (GL)
provides lump sum benefits in the event of death or total and permanent disablement of members.
Benefits
Benefits to members
Group insurance is a tremendous employee benefit because it makes a material impact on the financial wellbeing of insured members. Members gain peace of mind that they are covered 24 hours per day, 7 days per week, even when they are not working. In addition, because they belong to a group, they have access to competitive wholesale rates and unique product features such as automatic cover for all lives meaning no medical underwriting up to certain limits.
Benefits to employers or funds
There are several key advantages with providing employees or fund members with group insurance.
Enhancing Staff Morale
Providing financial security through insurance is a valuable employee benefit, especially for those with dependants. It fosters a sense of security and well-being among staff.
Attract & Retain Talent
Offering group insurance positions your company as an employer of choice, helping you attract and retain top talent in a competitive market.
Seamless Administration
AGI ensures hassle-free installation and ongoing management, reducing administrative burdens while maintaining industry-leading service standards.
Cost Savings
Employers and trustees of superannuation funds can benefit from tax-deductible premiums, making group insurance a cost-effective solution.
Guaranteed Cover
Eligible members receive automatic coverage up to predetermined limits, ensuring peace of mind without the need for individual underwriting.
Key Advantages of Group Insurance Products
Automatic Acceptance Levels
Members receive coverage without medical underwriting up to pre-defined limits, ensuring easy access to insurance.
Competitive Premium Rates
Group insurance benefits from economies of scale, leading to lower premium rates compared to individual policies.
24/7 Coverage
Unlike workers' compensation, group insurance covers employees at all times, whether they are at work or not.
Guaranteed Renewability
Group policies are guaranteed renewable, meaning the insurer cannot cancel the policy within the agreed term (e.g. up to three years).
Reducing Underinsurance
Group insurance helps address underinsurance, a widespread issue in Australia, as noted by the Insurance Council of Australia (2020).
Additional Benefits
Many policies offer enhanced benefits, such as:
- Accommodation Benefit
- Family Care Benefit
- Home Care Benefit
- Nursing Care Benefit
- Overseas Assistance Benefit
- Specific Injury Benefit
- Enhanced Death Benefit
- Trauma Benefit
These features provide added value and financial support beyond standard coverage.