What is group health insurance?
Group health insurance is a type of health insurance policy typically paid for by businesses to cover the costs of their workforce’s private healthcare, such as surgery, diagnostic testing, and medical treatments.
It offers a way for businesses to provide access to the benefits associated with private healthcare under a single policy to their employees, and it’s available to companies with five staff and more.
One of the advantages of group health insurance is the lower cost compared to individual private health insurance because the risk is spread across more people.
Depending on the size of the group, employer-subsidised health insurance can be discounted, and family members can be eligible to join. The policy owner is usually an employer, and the beneficiary is the employee and immediate family members if they join the group insurance plan.
How much does Group Health Insurance cost?
The following factors influence the cost of Group Health Insurance:
- Age: the average age of those employees included in the scheme & ratio of young to old.
- Benefits selected: the benefits to be included in the scheme: vision and dental or non-pharmac funding.
- Claims: previous claims history (if your group has had claims) from a previous insurer.
- Insurer: each insurer will offer different price points, which partly depends on their existing financial performance, but also inclusions/exclusions offered
- Number of employees included: the more people included in a scheme, the lower the premium per person.
Below are indicative costs for small and medium businesses
| No. of Employees | Average Age | Monthly cost per Employee |
|---|---|---|
| 5 – 14 | 35 – 40 | $75 – $125 |
| 41 – 45 | $90 – $170 | |
| 46 – 50 | $125 – $250 | |
| 51 – 55 | $160 – $280 |
*Premiums shown are based on multiple sources including LifeCovered existing client base, quotations issued and market averages. Other variables can apply and all figures presented are for indication only purposes.
What are the benefits of group health insurance?
Group health insurance is considered the most attractive work perk that New Zealand businesses can offer employees ².
Employees covered by corporate health insurance experience a 54% reduction in wait times for elective surgery compared to individuals without private health insurance. In addition, insurance provides peace of mind in a time of uncertainty.
Here are some of the benefits of group medical insurance for your business.
Group Health plans typically cover:
- Private hospital surgical procedures and operations and in-hospital nursing care
- Cancer surgeries and treatment (chemotherapy, radiotherapy and brachytherapy)
- Consultations with a specialist
- Diagnostic imaging (such as x-ray, ultrasound, ct-scan, MRI-scan )
- Psychiatrist consultations and mental health assistance
Benefits for employers
- Medical insurance is a highly valued employee benefit and helps improve employee retention and recruitment.
- Employees receive faster and better treatment and, therefore, sooner back to work.
Benefits for employees
- Pre-existing conditions are covered for staff and their partner and children.
- Family members may be included at a discounted rate.
- Claim right away – no wait or stand-downs.
- Mental health service.
Key points
- A company health insurance policy helps increase productivity and employee retention
- Automatic acceptance for all staff and no paper application process
- Your staff can claim right away – no stand-downs
- Pre-existing conditions are covered for staff and their family members.
- Claim online via app or portal
- Provide your staff with faster medical treatment and return to work quicker.
- Quick and simple onboarding
Why offer workplace medical insurance?
A competitive employee benefits program is critical for attracting and retaining top talent.
One of the main advantages of group health insurance is cost — premiums are generally lower than individual policies because the risk is spread across a larger group of healthy, working individuals.
Another key benefit is that pre-existing medical conditions may be covered, depending on the size of the group and the insurer’s terms.
Spouses and children can often join the group plan at discounted rates, and may also receive cover for pre-existing conditions.
If you’re exploring your options, it’s worth comparing group insurance plans like Southern Cross Wellbeing One and nib Premier Business Health to understand how they differ in cover limits, eligibility, and personalisation options.
Group health insurance & mental health in the workplace
As the importance of mental health in the workplace becomes better understood, companies will discover that providing their employees with access to a group health insurance plan positively impacts morale and productivity.
Registered psychologist and psychiatrist consultations are a benefit provided by some workplace health insurance policies.
Counseling and Coaching
Group health plans often cover mental health services like Psychiatrist appointments and therapy. Providing a channel via which workers can speak with trained mental health specialists can prevent mental health disorders and enhance treatment for those who already suffer from them.
Why choose LifeCovered for your business health insurance?
As independent health insurance brokers, LifeCovered’s priority is helping your business find the right group health insurance solution – without bias.
We’re not tied to any single insurer, which means we provide objective, expert advice based solely on what works best for your team, your goals, and your budget. Whether you’re comparing cover levels, pre-existing condition terms, or pricing across providers like Southern Cross and nib, we guide you through every step.
By working with LifeCovered, you benefit from:
- Access to a wide range of group medical plans from trusted New Zealand insurers
- Clear, side-by-side comparisons tailored to your workforce size and needs
- Support with setup, onboarding, and ongoing plan management
- Advice that’s free to you—our service is paid by the insurer, not added to your premium
In short, We do the heavy lifting so you can make confident, cost-effective decisions.
There are no extra charges beyond the cost of your insurance to work with us.
We’ll work with you to develop a group health insurance plan that’s tailor-made for your business.
We’re here for you and your group to assist whenever you need us.
Request a group health insurance quote?
Willi Olsen
Director
Choosing the right medical cover for your business
Your health plan is made to fit your business.
We work with all of New Zealand’s top insurance providers as independent insurance experts. There are three major providers of business medical insurance:
- Accuro
- Southern Cross
- nib
Each insurer is unique, and your circumstances depend on which is best for your company and employees.
Our job as insurance brokers is to ensure you get the best coverage for your company and employees at the best price.
LifeCovered is a locally owned insurance broker offering insurance advice and claims advocacy for you, your family and your business. As your insurance broker, you will receive financial advice from us regarding the providers we are accredited with. Our service is free to you, as the insurer pays LifeCovered a commission, which is disclosed during the advice process.
Similar employee insurance benefits
Group Salary Continuance
Jump the waitlists and gives your employee access to medical treatment. Your staff can therefore recover sooner.
Group Total Permanent Disablement
(TPD) Insurance pays a lump sum benefit if you are no longer able to work due to an injury or sickness
Group Life Insurance
Regular payments to help you maintain your lifestyle while you’re unable to work due to injury or illness.
Group Critical Illness Cover
Think of this cover as extra financial protection beyond medical and income protection insurance.
Group Health Insurance FAQs
How much does group health insurance cost?
The average group health insurance policy costs a little more than 1% of annual salary expenditure.
We’re covered for all critical illnesses – and that’s all the cover we need
Trauma insurance policies will only cover your employees for specific conditions and will then only make a one-off payment. On the other hand, private health insurance covers many conditions and treatments, and your staff can claim multiple times.
How many employees do I need for group health insurance?
You need at least five employees to take out a group health insurance policy, whether you are a company or an organisation. Pre-existing conditions are covered, and your staff can claim right away.
All across New Zealand, we offer small businesses comprehensive staff health insurance packages, allowing them to focus on their core operations with peace of mind.
Who owns the policy?
The policy is owned and paid for by the employer, but the beneficiary is the employee.
Employees who leave the business can continue the health cover as a private policy.
What if staff leave?
Upon leaving employment, employees can choose to continue their cover privately.
The policy will not be connected with your workplace insurance plan.
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