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Group Life Insurance

March 8th, 2012 | Posted by Editor in Articles

Group life insurance is generally provided by your employer to its staff members, or an association to it members and is typically offered as an inclusion to your employment package or as a membership benefit.

Products included under this cover are generally Term Life, TPD and Group Salary Continuance (Income Protection) Insurance.

The Benefits
The benefits of providing Group Life Insurance is that it can provide financial protection to an individual and their family members in the event of Death or Disability, the employee or association member has peace of mind that they and their family members are able to continue with the lifestyle they have become used to.

There is also the benefit to the employer or association as they do not have to worry about the financial welfare of the member of the Group Life Insurance plan in the case of Death or Disability.

To the employer the use of Group Life insurance can be a used to entice and retain employees as it can be included as part of their work package.

Premium payments for Group Life insurance are generally tax deductible to the company or association

Where to get it?
Most of the major Australian insurance companies offer Group Term Life insurance, quotations, product information, policy terms and conditions.

These can generally be obtained from a licensed insurance broker who acts as an intermediary between the company or organisation and the insurer, this area of insurance is quite specialised and may be best to use a broker who deals in this area regularly.

What is the cost?
Group life insurance premiums are usually reasonably priced as the cost to insure a single person as a member of a group rather insuring that person on their own is calculated based on the group as a whole.

Insurers understand that the company or association are going to be making the payments on a regular basis. The higher the numbers involved under a Group insurance plan, the lower the premium associated the plan.

The coverage under a plan can be flexible based on the amount of premium a company or association is able to afford.

Ownership
Group Life insurance policies are generally owned by an employer or association for the benefit of their employees or members.

These arrangements are made for two reasons, firstly protecting their own interests against any loss of an employee or member for the long term and to minimise the cost of sick leave entitlements.

Secondly to provide a valuable benefit to their employees or members.

This material is not intended to constitute personal advice, and must not be relied on as such. This information has been prepared without taking into account your objectives, financial circumstances or needs. Before making a decision based on this material, you should consider the appropriateness of this material having regard to your own objectives financial circumstances and needs. You should consider obtaining independent advice before making any decision.

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