This type of policy can be utilised by employers wishing to provide cover for their employees, and can give the right balance between an employer’s financial objectives and the needs of employees.  Group Life (GL) Plans are convenient, simple, yet comprehensive insurance cover that can assist in easing financial burden when the employer, employee or their families need it most.

Benefits for Employers

Employers who implement a GL contract receive the following benefits to their business:

  • Improved planning, budgeting and cash flow.

Because you have outsourced the risk to an insurer, you do not need to tie up your own capital. Your annual insurance cost is predictable and can be incorporated into your budgets.

  • Attractive to good staff.

Your organisation can attract the best staff, who may be accustomed to having income protection as part of their package.

  • Tax savings

Group Life premiums may also be deductible, depending on the structure or purpose of the cover.

  • Delegated financial responsibility for employees’ suffering injury or illness.

The Insurer takes on this responsibility, fulfilling obligations without any undue pressure on the business or other employees.

  • Professional claims management

The Insurer’s claims management team will consult with medical services including rehabilitation services, to ensure a swift return to work where appropriate, or to provide direction with employment alternatives.

Benefits for Employees
  • Access to a cost effective and valuable benefit.

GL provides a lump sum payment to relieve the stress for the family at their time of need in either the death or total and permanent disability of the insured.

  • Access to cover without health evidence.

GL policies can have an Automatic Acceptance Limit, which means that employees can obtain cover without having to be medically underwritten by the Insurer.

  • Continuation of Cover

Upon ceasing employment the employee has the option (within a specified time, ie. 30/60 days from date of termination) to continue the cover on an individual basis without the need to be medically underwritten.  This is an extremely valuable option for any employees that have a pre-existing condition and would find it difficult to obtain cover on an individual basis in the market place.