GROUP INCOME PROTECTION INSURANCE
In challenging times, Group Income Protection supports employees' recovery while easing financial concerns.
Group Income Protection provides your staff a financial safety net if they cannot work due to sickness, injury, or mental illness. It pays a percentage of an employee’s regular income until the employee returns to work or retires.
- Helps you attract and retain the best staff
- Pays your staff up to 75% of monthly salary
- 24/7 worldwide protection, at work or during one’s own time
- Easy onboarding – no health questions or health checks – staff can claim right away
- Cost-effective premiums, between 0.5% and 1% of annual payroll
What is group income protection?
Group income protection insurance is a type of income protection policy paid for by the company that covers a part of an employee’s income if they are unable to work due to sickness, mental illness, or an accident.
Group income protection insurance is a sort of income protection policy paid for by the company that covers a part of an employee’s income if they are unable to work due to illness, mental illness, or an accident.
Financial support kicks in after a waiting period, known as the waiting period. This is set by the employer and could be in line with sick pay arrangements or a period such as 4, 8, 13, 26 or 52 weeks.
It offers a way for businesses to provide financial support and expert rehabilitation services for staff under a single policy to their employees, and it’s available to companies with ten staff and more.
Long-term absence often means high costs for a business or organisation, leading to a financial dilemma. Can the company afford to continue paying the employee and their replacement?
One of the benefits of group income protection insurance is that it is more affordable than individual private income protection insurance since the risk is dispersed over a more significant number of individuals.
The key benefit of purchasing as a group is that an insurer will charge a significantly reduced premium per person for a high-quality policy. In addition, generous policy features can also be negotiated and included at a minimal additional charge and, in some cases, no additional charge.
What are the benefits of group income protection insurance?
Group income protection provides a valuable financial safety net where an employee is unable to work due to long-term illness or injury, but it is also an important workplace health and wellbeing tool.
Whether reducing the length of time someone is absent by facilitating appropriate rehabilitation and support, or providing employees with tools and advice that encourage them to adopt healthier lifestyles, it can help benefit the business and its workforce.
Benefits for employers
- Competitive benefits package to attract and retain employees
- Reduce the impact of long-term absence
- Easy to set up with simple yearly accounts
- A company culture that promotes health and wellbeing
Benefits for employees
- Continue to earn income during illness or injury
- Support with rehabilitation
- Automatic Acceptance, no health questions
How Group Income Protection can help
If an employee is too sick or hurt to work, they may be eligible for income protection insurance. It is important that employees understand income protection covers a portion of their income – replaces an income loss.
Injuries and illnesses covered by group disability insurance
Depending on the insurance provider, group disability insurance can cover:
- Physical injuries
- Illness or sickness
- Chronic pain
- Mental health issues
How much does group income protection cost?
The cost of group disability insurance will vary depending on how your business sets up its plan and which insurance provider you’re with. Some factors that will impact the rate include, but are not limited to:
- Benefit coverage amount
- Number and the average age of employees
- Industry and occupational risks
Similar employee insurance benefits
Jump the waitlists and gives your employee access to medical treatment. Your staff can therefore recover sooner.
Regular payments to help you maintain your lifestyle while you’re unable to work due to injury or illness.
Think of this cover as extra financial protection beyond medical and income protection insurance.
Why choose LifeCovered for your small business group income protection insurance?
As independent disability insurance brokers, our primary goal is to help companies determine what they need and find the best options for employee salary continuance.
Since we’re not tied to any one insurance provider, we can offer you objective guidance while searching for the most comprehensive, tailor-made policy at the most reasonable cost.
Apart from this, there are other advantages to working with us:
There are no extra charges beyond the cost of your insurance to work with us.
We’ll work with you to develop a group income protection 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 income protection insurance quote?
Since 2017, LifeCovered has worked hard to provide our customers with tailored Group Income Protection solutions that are easy to manage. Every month, we help protect the financial futures of over 1,600 New Zealand staff.
Group Income Protection Insurance FAQs
How do I get a quote?
If you’d like to apply for Group Income Protection, you can start by filling in this form.
How much does it cost?
The average group income protection insurance policy costs 0.5% to 2% % of annual salary expenditure.
Who can be insured?
- You can choose different benefit levels for defined groups of employees.
- Benefits can be paid until the benefit termination age, for a maximum of 2 or 5 years, or until 65.
Who owns the policy?
The policy is owned and paid for by the employer, but the beneficiary is the employee.
Employees who leave or retire from the business can take the policy private.
What if staff leave?
When staff exit or retire from the company, they can choose to continue their cover privately and pay for it themselves.
The policy will not be associated with your workplace insurance plan.
Is there any health questions?
Typically, we can cover each employee for up to $60,000 per year without medical underwriting. The limit depends on the size of the policy and the benefit choices.
Employees will be medically underwritten if their cover exceeds this ‘free limit’. We can provide cover temporarily for up to 90 days whilst medical underwriting is completed, subject to conditions and criteria.
How many employees do I need for group income protection insurance?
You need at least ten employees to offer your staff a group income protection insurance policy, whether you are a company or an organisation. Pre-existing conditions are covered, and your team can claim right away.