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Group Income Protection

Group Income Protection provides ‘umbrella’ income insurance to a large group of employees within the same organisation. Its main advantage is that it allows each individual to purchase the insurance at a highly competitive wholesale rate. Also known as group salary continuance insurance, it works as a combined policy and can be a cost-effective way to attract and retain employees as well as differentiate your company from your competitors.

How does Group Income Protection work?

Group Income Protection provides covered individuals with an income stream if they can no longer work as a result of illness or accident. It is normally paid as a monthly benefit of up to 75% or more of total income, and is paid until the individual returns to work or the policy runs out.

Benefit periods can range from one to six years, and the policy is available to persons up to the age  of 70. Similar to group life insurance, it protects employers from having to pay salaries to sick or injured employees who are not able to contribute to company profitability for extended periods of time.

What does Group Income Protection offer?

Group Income Protection or salary continuance can provide:

  • Up to 80% of salary if the employee is disabled, injured or sick
  • Super contributions up to 10%
  • Booster payments
  • A choice of waiting periods
  • Optional extra cover including trauma insurance and home care benefits

When should you choose Group Income Protection?

Income Protection provides 24 hour protection every day of the year regardless of the insured’s location. When you as an employer provide Group Income Protection to your employees, you gain the following benefits:

  • Protection of your employees and their families, helping them continue to pay the bills if one of their main providers is injured or falls sick
  • Protects the business and reduces financial risk by shielding it from having to pay extended sick leave
  • Saves you from the decision as to whether to keep paying the absent employee’s salary

How do you qualify and what are the costs?

Group Income Insurance policies can range in size from just a few employees to 200 or more. As the policy is provided at near wholesale price, they can be extremely cost effective and become a solid part of your company’s growth strategy.

Choosing a Group Income Protection broker

A Group Income Protection policy can be one of the best ways to retain your best people, while ensuring your business is protected from having to make large payouts to absent employees.  At Wealth Smart, we work hard to negotiate the best Group Income Protection underwriting from the leading providers, ensuring you get the best deal possible.

Page last updated: January 16, 2015