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Group insurance is a single policy that allows many members of an organisation (usually an employment group) to purchase an insurance policy with competitive wholesale premium rates, offering minimal or no medical underwriting and simple administration provided by your broker.  The cover that you provide through Group Insurance varies, however it may provide life insurance, total and permanent disability (TPD) or even group salary continuance (Income Protection).

By providing a Group Life or Salary Continuance insurance policy to your employees, you are providing employees with valuable protection for themselves and their families.  You will also be providing an invaluable benefit to your business protecting against unforeseen extended sick leave expenses.

With the right benefits program in place, businesses can offer employees (including owners) unrivalled security at a low cost to the business.  A successful employee benefits program should help to achieve the following:

  • Increase employee loyalty, engagement and morale
  • Differentiate your employment offering and attract and retain quality employees
  • Become and remain an employee of choice
  • It also negates any moral or financial dilemma you face as to whether to continue to pay a sick or insured employee

Premiums are usually less than you would expect.  As a general rule of thumb, the premium should cost you less than 1% of your total payroll.  Furthermore, some policies allow groups as small as ten people to join.

How common is this type of benefit for an employee?

Group Salary Continuance is common in executive salary packaging arrangements and many companies are now providing the benefit for all staff.  It is a great way of attracting and rewarding talent to your business.

Is this expense tax deductible for the employer?

Generally, the cost of providing this form of employee protection is tax deductible to the employer and no Fringe Benefits Tax is applicable.

What is the average salary continuance payment period?

For most employees, the likelihood of being off work due to a serious illness or injury is significantly greater than death.  The average salary continuance claim lasts between 9 to 12 months whilst most families only have enough liquid funds to live for 3 weeks without payment of their regular income.

Staff Profile

Please contact the following Account Managers directly for a referral to Planned Life for this product:

Carina Bogaard 

Account Manager NSW/ACT 

Genevieve Reed

Account Manager - VIC

Cos_Cirocco

Cos Cirocco

National Business Manager - State Manager SA

Kylie McGrath

State Manager
WA Branch

Karen Meiklejohn

State Manager – QLD/NT

Planned Life product support and expertise provided by:

Daniel Orrell

Business Development, Partner - Planned Life Cover

Darren Conway

Principal/Director - Planned Life Cover