Group insurance is cover that is provided to groups of people, such as employees of an employer, members of an association or members of a superannuation fund. Group insurance provides members with peace of mind in the event of death, disablement or serious illness that renders them unable to work. They also benefit from premium savings and beneficial product features.
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.
There are several key advantages with providing employees or fund members with group insurance.
Enhancing staff morale
Providing financial security to members in the form of insurance is a significant benefit that is appreciated by all, particularly those with dependants.
Attract and retain staff
Positioning your company as an employer of choice is a great way to attract & retain the best possible talent.
Enjoy seamless installation and ongoing coordination of requirements, thanks to AGI. We are proud to be an industry leader in the administration of group insurance plans.
Tax advantages in terms of tax deductibility of premiums to employers and trustees of Funds.
Guaranteed levels of cover up to predetermined limits.
Group insurance provides comprehensive insurance cover that protects a business’ most important asset, its people.
While group insurance products vary in their product features, there are key overall product features and benefits.
Automatic Acceptance Levels
Which means no underwriting for members up to pre-defined limits.
Competitive premium rates due to economies of scale.
Unlike workers' compensation, group insurance covers employees even when they are not at work.
Group policies are guaranteed renewable (non-cancellable), which means a life insurer is not able to cancel the policy. Cover is usually guaranteed to be renewable for a period, (for example, up to 3 years).
Addresses the issue of underinsurance through group insurance. According to the Insurance Council of Australia (2020), underinsurance is a prevalent issue in Australia.
Innovative ancillary benefits can also be provided. Examples include Accommodation Benefit, Family Care Benefit, Home Care Benefit, Nursing Care Benefit, Overseas Assistance Benefit, Specific Injury Benefit, Enhanced Death Benefit and Trauma Benefit.