Group Insurance for Staff – Are You Paying Too Much for Cover?

When it comes to looking after your employees, group insurance is one of the most effective ways to provide financial protection and peace of mind. Whether it’s life insurance, TPD (total and permanent disability), income protection, or trauma cover, a well-structured group policy can safeguard your staff and their families in difficult times.

But here’s the catch: many businesses are either underinsured or overspending on their group insurance policies. Without regular reviews, you may be paying for cover that isn’t aligned with your workforce’s needs—or worse, leaving gaps in protection that could put your employees at risk.

Why Group Insurance Matters

• Attraction & Retention: Employees are more likely to value and stay with an employer who provides meaningful protection.

• Financial Security: Provides staff and their families with peace of mind in case of illness, injury, or death.

• Cost-Effective: Group policies are often more affordable than individual cover, leveraging economies of scale.

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Common Issues with Group Insurance Policies

1. Paying for Cover You Don’t Need. Many businesses adopt a "set and forget" approach. Over time, your staff numbers and demographics may change, leaving you paying premiums that don’t reflect your current needs.

2. Insufficient Coverage for Staff. Conversely, if your group cover hasn’t been reviewed recently, employees may not have the right level of protection. For example, younger staff may not need the same type of cover as older employees, while key staff may need additional layers of protection.

3. Rising Premiums Without Review. Insurers regularly adjust pricing. Without comparison and negotiation, your business may end up overpaying compared to similar policies available in the market.

Benefits of Reviewing Your Group Insurance

• Tailored Cover: Ensure benefits align with the age, family structure, and roles of your workforce.

• Cost Savings: Identify opportunities to reduce premiums without compromising on protection.

• Improved Value: Balance affordability with the right level of benefits for staff.

• Compliance & Governance: Demonstrate that your business is actively managing employee entitlements.

How Often Should You Review Your Group Policy?

We recommend reviewing your group insurance at least annually, or whenever your workforce changes significantly (e.g., growth, downsizing, or changes in staff demographics).

How Covermate Life Can Help

As an independent life insurance broker, Covermate Life can:

• Review your existing group insurance arrangements.

• Benchmark your policy against others in the market.

• Negotiate with insurers on your behalf.

• Provide general advice to ensure your business isn’t paying too much while still protecting your staff.

Final Thoughts

Group insurance is a valuable benefit for staff, but without regular review, it can become a costly and inefficient expense. By taking the time to assess your policies, you can strike the right balance between employee protection and business affordability.

Frequently Asked Questions

1. What types of cover can be included in group insurance? Typically, group policies can include life insurance, total and permanent disability (TPD), income protection, and trauma cover.

2. Is group insurance cheaper than individual cover? Yes, group cover is often more cost-effective because risk is spread across a larger pool of people.

3. Can we change insurers if we find a better deal? Yes, but it’s important to compare benefits carefully to ensure there’s no reduction in cover for staff.

4. How do we know if we’re paying too much? The best way is to have your policy reviewed by an insurance broker who can compare it against market options.

5. Does every employee receive the same level of cover? Not always. Policies can be structured differently depending on your business’s needs and employee demographics.