Group Insurance Plans

What is a Group Insurance Plan?

A group insurance plan is a type of insurance policy that is offered to a group of people, usually through an employer. Some common types of group insurance plans include life insurance, disability insurance and salary continuance (also known as income protection). We can do group insurance plans for small businesses or large organisations.

Some of the benefits of a group insurance plan for employees include:

• Access to coverage: Group insurance plans can make it easier for employees to access coverage that they might not be able to afford or qualify for on their own.
• Cost savings: Because group insurance plans are often purchased in bulk, they can be less expensive than individual insurance policies.A range of options: Group insurance plans often provide a range of coverage options, allowing employees and employers to choose a plan that best suits their needs.
• Reduced administrative burden: Group insurance plans are often administered by the employer, which can reduce the administrative burden on employees.
• Tax benefits: the employer may be able to claim a tax benefit on the premiums they pay for group insurance.
• Attracting and retaining employees: Having a group insurance plan can be an attractive benefit for potential employees, and it can help retain current employees.
• Employee morale: By providing a benefit like a group insurance plan, an employer is showing that they care about their employee’s wellbeing, which can have positive effects on employee morale.

However, there are also some drawbacks to group insurance plans, such as less flexibility in terms of coverage options and a lack of portability if an employee leaves the company.

Our Newcastle, Singleton and Maitland advisers will help you navigate these potential issues.