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Group Life Insurance

Engaged employees cost less

Group Life Insurance

Group life insurance shows employees you value what matters most to them—their loved ones

 

employee insurance
group life insurance

Evidence-based
Approach to Wellness

Your organisation’s bottom line is affected by your employees’ ability to perform at their peak. To address these challenges, you need an experienced partner to help you create a comprehensive, effective program that addresses every aspect of employee health and wellbeing. 

Looking Beyond Health

Health and wellbeing go hand in hand. That’s why many employers are finding it helpful to look beyond traditional medical benefits to address some of the challenges that affect their employees’ wellbeing. At LifeCovered, we help companies like yours create programmes that focus on:

  • Physical wellbeing, such as managing or avoiding chronic conditions
  • Mental health concerns, such as depression or stress
employee insurance
key employee benefits

We Start with Strategy

LifeCovered will help you identify your company’s key issues, set measurable goals, and develop targeted strategies. By designing a tailored health and wellbeing programme that demonstrates your commitment to your employees, that can help you:
  • Reduce absenteeism
  • Improve morale
  • Increase retention

Why LifeCovered?

Just real human help from start to finish.

What is Group Life Insurance?

Group Life Insurance is an employer-sponsored benefit that businesses can offer to their employees typically available to the organisation of 10 staff or more.

Employer-funded schemes can come with powerful benefits, such as full cover for pre-existing health conditions and heavily discounted premiums.

Group insurance encompasses Life, Income Protection or Medical insurance cover for a defined group of people.

When employees choose to add family members, discounts also apply. 

Your employee benefits package as a whole can contribute to employee happiness and well-being, and improve your company’s recruiting and retention of valued employees.

LifeCovered has a strong background in group medical and group life insurance schemes.

What types of group coverage are available?

Some employers will bundle multiple types of coverage into a group policy, which can include:

Life Insurance

A traditional life insurance policy pays out a lump sum if the insured dies or is diagnosed with a terminal illness. This is the most common benefit type.

Total and Permanent Disablement Cover (TPD)

If your employee is totally and permanently disabled they will receive a lump sum of money with TPD cover. This can help with modifications to their home, to pay for the family to be closer or for additional help.

Income Protection

Also known as disability insurance, income protection insurance pays out up to 75% of the pre-disability income of your income if you become unable to work.

Critical Illness

Pays out a lump sum if you’re diagnosed with a serious medical condition such as cancer, heart attack or stroke.

Health Insurance

Medical insurance benefit generally comes with discounted premiums to employers. It enables staff to get medical insurance and pre-existing health conditions may be covered. Health insurance means your staff can avoid the long waiting lists and therefore return to work sooner.

What are the key employee program benefits?

Automatic Acceptance

A key benefit of group life insurance is automatic acceptance, which means that your employees do not need to take a medical exam or submit medical information to be approved for coverage.

This is different from life insurance purchased in the individual market, which often requires a medical exam for the insurer to underwrite and make you an offer.

This makes insurance cover readily accessible for some employees who might otherwise not be insurable on standard terms

Value for Money

For a small proportion of your total salary budget you can provide cover for your staff, which helps them to feel valued and helps you retain your valuable employees.

Continuation Options

When an insured person leaves your employment they can choose to continue their coverage under an individual policy with no additional underwriting.

Cover available during unpaid leave

Cover can continue for your employees on parental or other unpaid leave as long as premiums continue to be paid.

How does Group Life Insurance work?

Group Life Insurance is much like individual life insurance. A payout is if your employee is diagnosed terminally ill or dies. Premiums are paid by the company. 

Why should I offer Group Life Insurance?

A recent survey by Seek.co.nz identified that employee benefits play a significant role in addition to salary when considering to stay or change jobs. 

Here are some benefits

  1. Attract Potential People
  2. Retain Key Staff
  3. Improve Productivity

A group life insurance scheme therefore is 

Who pays the insurance premium?

You can choose to pay for all, part, or none of the premium with group life insurance. If your budget is tight, employees could pick up the entire cost of premium with voluntary group life insurance.

How employee benefits programmes work?

As an employer and setting up the employee benefits program, employers can opt for different types of schemes.

Voluntary schemes

With voluntary schemes the premiums are not subsidised by the employer; they are instead paid by the employee. As a result, employees choose whether or not to join.

Compulsory schemes

With compulsory schemes the employer pays for insurance cover for all eligible employees. As the benefit is free to employees, membership of the scheme is usually mandatory and all employees who fit within the eligibility criteria are included.

Partially subsidised schemes

Partially subsidised schemes are voluntary schemes where the employer and employee share the costs. As there is no guaranteed uptake of membership, these types of schemes only attract limited concessions from insurers.

For businesses an employee benefit programme makes a very sound investment.

IRD, Group Life Insurance and Fringe BenefitS Tax (FBT)

Inland Revenue (IRD)is reviewing employers who take out group life insurance, disablement and trauma insurance policies to cover employees.

Where an employer has taken out an insurance policy in its own name, but it’s the employees who receive the benefit of any claim, FBT will apply to that policy.

FBT will also apply where the employer is the beneficiary of the policy, but the employer is holding the policy for the benefit of the employees or their estates (that is the employer has agreed to pay any receipt under the policy to the employee).

For more about Fringe Benefits Tax on Group Life insurance, disablement & trauma insurance.

I'm interested in Group life insurance. What is next?

We are fast-growing NZ financial advisers built on old time values with a mission to make insurance easy to understand. 

We specialise in financial advice to both individuals and SME’s on everything from life, health and income protection insurance.

LifeCovered is a registered financial service provider with the New Zealand Companies Office.