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Group Salary Continuance

Employees are a company’s greatest asset but what happens when one of them suffers an injury or illness and is unable to work? Does the company continue to pay them after they have exhausted their sick leave? This decision becomes even more difficult if the employee in question has given many years of faithful service or is a key person in the organisation. Can the company afford to continue to pay the employee as well as his or her replacement?

A simple solution to remove this moral and financial dilemma is Salary Continuance Insurance.

In short, Salary Continuance Insurance:

  • Provides an income stream in the event that an employee is unable to work due to illness or injury until the employee returns to work or reaches age 65 (shorter benefit periods can be chosen).
  • Covers employees 24 hours a day, so includes events that may not be covered by workers compensation insurance.
  • Removes the moral and financial dilemma of whether to continue to pay disabled employees by allowing the employer to financially support loyal employees after sick leave benefits expire.
  • Offers very cost effective premiums, usually less than 1% of insured payroll. When you consider the fact that these premiums are tax deductible and do not usually attract Fringe Benefits Tax or GST, you can see why group salary continuance insurance is such a popular employee benefit with both employers and employees.

Many companies realise that protecting their valuable employees against sickness and injury is essential not only in providing an attractive employee benefit, but more importantly in strengthening the partnership with their employees. This will assist in increasing productivity and ensuring the organisation’s competitiveness is maintained as we move into the 21st century.

This benefit is common in executive salary packaging arrangements and many companies are now providing the benefit for all staff.

This form of protection is also recognised by employers as being a cost effective method of planning and budgeting for their long-term sick leave commitments. Generally, the cost of providing this form of employee protection is also tax deductible to the employer and no Fringe Benefits Tax is applicable.

Once the policies have been introduced as part of the staff packages, we have come to observe these benefits as being highly valued by employees and employers alike. Considering the growing number of employers now offering these employee benefits as part of their employment package, can you afford not to offer these benefits to your employees?

Did you know?     

For most employees, the likelihood of being off work due to serious illness or injury is significantly greater than death. The average salary continuance claim lasts between 9 to 12 months while most families have enough cash on hand to last only 3 weeks without a pay cheque.

What cover is provided?   

Salary Continuance insurance replaces up to 75% of an employees’ income in the event of total disability. With improvements in medical science, the rate of recovery and rehabilitation from serious illness or injury is forever increasing, suggesting that fewer claims will be made under traditional Life & Total Permanent Disablement insurance policies as people are more often able to return to work.

Who needs it?   

Anyone who relies on income from salary or wages to meet financial commitments such as mortgage payments, credit card debts, car repayments, household bills children’s education and other lifestyle expenses.

Who Provides it?

  • Group Salary Continuance is used by superannuation funds to insure their liabilities with respect to TTD.
  • Used by companies as an “employee benefit” to protect their employees and their dependents. Can be used as part of Enterprise Bargaining Agreement negotiations.
  • Available to companies and super funds with a minimum of 10 lives.


This page contains general information, does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Pty Ltd on request. Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges the insurance and is not the insurer.