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Group Income Protection

A benefit often used by companies to help protect their employees and their dependents. It is available to companies and super funds with a minimum of 10 people.

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 has given many years of faithful service or is a key person in the organisation. Can the company afford to continue paying the employee as well as his or her replacement?

A simple solution to remove this moral and financial dilemma is Income Protection Insurance.

In short, Income Protection 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, worldwide. Includes medical events that are not covered by ACC
  • Removes the moral and financial dilemma of whether to continue to pay disabled employees after sick leave benefits expire
  • Provides a powerful tool to assist you company’s attraction and retention strategies
  • 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, you can see why group Income Protection 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 employees and their families. This will assist in increasing productivity, loyalty, and ensuring your organisation’s competitiveness is maintained into the 21st century.

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

Income Protection is also recognised by employers as being a cost effective method of capping their long-term sick leave commitments.

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 Income Protection claim lasts between 9 to 12 months while most families have enough cash on hand to last only three weeks without a pay cheque.

What cover is provided?

Income Protection 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. Therefore, 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?

  • Used by companies as an “employee benefit” to protect their employees and their dependents. Can be used as part of remuneration negotiations
  • Available to companies & super funds with a minimum of 10 people
  • Companies who need to attract and retain high value staff