Group Life Insurance - why you should consider it | Protection Solutions

Group Life Insurance – why you should consider it

Group Life Insurance – why you should consider it

April 24th, 2019

If you own a company or run a successful business and struggle to attract great staff then having a Group Life offering could be a great way to create differentiation between you and other companies looking for staff.

Why would you have a group life policy?:

  • Provides peace of mind for employees and their families in the event of death or terminal illness.
  • Promotes employee loyalty and a positive work environment and culture.
  • Skilled employees are attracted, motivated and retained by employers who provide insurance benefits.
  • Premiums are usually lower than individual premium rates.
  • Automatic acceptance for insurance cover up to the automatic acceptance limit for your plan. Generally, this means there is little or no individual medical underwriting.

We have taken the liberty of using the offering from Fidelity Life to give you information on the terms and conditions of cover, generally, we need to have a minimum of 10 staff to make this work for your organisation.

Life Cover and why your employees need it!

Every day people face a wide range of risks to their personal wellbeing and lifestyle. Life Cover helps reduce the financial impact of death or terminal illness.

Life Cover is designed to provide security for a wide range of financial commitments by paying a lump sum on death. It can be used for a number of purposes including:

  • Reducing or eliminating mortgage commitments.
  • Eliminating personal debt, such as loans or credit cards.
  • Providing a lump sum to fund a family’s future lifestyle in the untimely death of the main provider.

If you want to help your employees meet these and other obligations in the event of their death, or provide a lump sum that the employee’s family can draw upon to meet their needs, then Group Life Cover is an essential part of your offering to your employees.


This cover provides a lump sum in the event of a covered employee’s death. Cover generally expires at age 70.

Some available features of such policies* include:

  • Terminal Illness Benefit – if a covered employee is diagnosed as terminally ill and likely to die within 12 months, you may apply for early payment of the Death Benefit.
  • Bereavement Benefit – on application we will pay up to $15,000 on the death of a covered employee, as an immediate benefit to cover funeral and other costs. Any early payment is deducted from the Death Benefit.
  • Interim Accident Cover – any employees not eligible for automatic cover will have interim cover for accidents while their application for cover is being assessed.
  • Continuation Options – if a covered employee leaves the business, he or she may choose to continue their cover by taking up an individual life insurance policy for the same amount of cover, with the benefit of no medical underwriting. Usually, this option must be exercised before the employee is aged 70. Conditions will apply.

*Note: Conditions and limits will apply.

Optional Benefits

  • Personal Accident Benefit – if a covered employee has an accident resulting in specific losses, we will pay a lump sum for that loss. Payment of this benefit doesn’t impact their Life Cover while they remain a covered employee. An additional premium and conditions apply.

If you need to attract fantastic staff and have 10 or more staff then talk to the specialist group team of Grant Uridge and Thurl Gibbs.  Together we manage over 20 schemes with an excess of 3500 staff and we have a very good understanding of what will work for you.

Give us a call on 04 976 1099 or email either Grant or Thurl oat [email protected] or [email protected]