What is group insurance and how will it benefit your business? | Protection Solutions

What is group insurance and how will it benefit your business?

What is group insurance and how will it benefit your business?

April 23rd, 2021

Are you the perfect employer? What employee benefits are you currently offering your staff? What better way to show you genuinely care about your employees than taking out a group insurance policy for your staff? We are going to discuss the benefits of putting a group scheme in place for your staff.  

What is Group insurance?

Group insurance can be used by employers who want to provide value and added benefits for their employees. There are a few different types of cover that is available to choose from.

Employer-funded policies can offer attractive benefits, such as full cover for pre-existing health conditions, and lower premiums. This type of cover is generally arranged quickly for your staff, without the need for medicals or forms.

At Protection Solutions we partner with product providers to create a custom-made employee benefits plan that best suits your business needs. The policies we can help you set up usually include employer-funded group medical insurance and different types of group life insurance.

Who uses employee benefit programmes?


If your business has ten or more staff, you can consider offering fully subsidised employee insurance in which we can help you with at Protection Solutions. Our advisers manage policies for a range of New Zealand businesses, large and small.

Types of employee benefits

Insurance benefits for employees are usually made up of the following products:

•           Group medical insurance

•           Group life, disablement, and critical illness (trauma) insurance

•           Life insurance

•           Retirement plans

•           Disability insurance

Income protection gives employees financial support if they’re unable to work through illness or injury. Life insurance means a lump sum is paid if an employee dies, while TPD is for total and permanent disabilities that leaves employees unable to work. Trauma cover provide a lump sum for employees who have experienced one of the illnesses specified in the policy.

What are the benefits for my staff and my business?

Workplace insurance can produce a tangible return on investment for your business, by helping to:

  • Reduce staff absenteeism
  • Increase job satisfaction!
  • Increase staff loyalty

Your employees can expect to see the following benefits:

  • Subsidised premiums
  • Discounted premiums for their spouse
  • Immediate cover
  • Cover on pre-existing conditions

How do group insurance policies work?

As an employer you can choose a category of people to cover under specific group insurance policy, but you may not be able to offer the cover as a voluntary benefit.

You will pay an amount of money called a ‘premium’ for a Group policy. Your policy is a contract so you know exactly what the provider will pay out for. As long as you keep paying for your insurance, and the policy terms and conditions have been met, the provider will pay out for everything agreed.

Our directors Grant and Thurl have a strong background in group medical and group life insurance, they can help make a group insurance plan that suits your business needs. Please don’t hesitate to contact us on 04 976 1099 to set up an employee benefits programme for your staff now!