How to Review Your Group Insurance Policy in 5 Simple Steps
- Covermate Life
- 15 minutes ago
- 3 min read
Group insurance is one of the most valuable benefits a business can provide for its employees. But like any financial product, a group insurance policy shouldn’t be left on autopilot. Over time, your workforce changes, costs fluctuate, and employee needs evolve. That’s why a regular review is essential.
Here’s a simple 5-step guide to reviewing your group insurance policy and making sure it still delivers the best value for your business and employees.
1. Assess Your Workforce Demographics
The first step in reviewing your policy is to consider your employees:
Age profile: Younger staff may not need as much life cover but could value income protection.
Family status: Staff with dependants may need higher life insurance and TPD.
Occupational risk: Employees in higher-risk roles may need tailored cover.
If your workforce has changed significantly since the policy was put in place, your cover may no longer be aligned with their needs.
2. Review the Types of Cover Provided
Group insurance policies typically include a combination of:
Life insurance (death benefit)
Total and Permanent Disability (TPD) cover
Income protection
Trauma / critical illness cover
Check whether the current mix of cover is appropriate for your staff. For example, income protection may be more relevant for younger workers, while trauma cover can provide valuable security for families.
3. Benchmark Premiums Against the Market
Premiums for group insurance can vary widely between providers. When reviewing your policy:
Compare current premiums against what’s available in the market.
Look at the cost per employee versus the level of benefit provided.
Check if your insurer offers experience-rated pricing based on your claims history.
Benchmarking ensures you’re not overpaying for cover or missing out on a more competitive option.
4. Check Flexibility and Portability
A well-structured group insurance policy should offer:
Flexibility to adjust cover as your business grows.
Portability so employees can take their cover with them if they leave.
Scalability to add or remove employees without complex processes.
These features make the policy more valuable for both your business and your employees.
5. Work With an Independent Broker
Group insurance can be complex. Working with an independent broker like Covermate Life ensures you:
Get an objective review of your current policy.
Understand how it compares to other options in the market.
Negotiate better terms or premiums with insurers.
Keep your policy aligned with employee needs and compliance requirements.
Final Thoughts
Reviewing your group insurance policy doesn’t need to be complicated. By assessing workforce needs, reviewing cover types, benchmarking costs, and ensuring flexibility, you can make sure your policy delivers maximum value.
At Covermate Life, we specialise in helping businesses review and optimise their group insurance policies so they’re cost-effective, competitive, and tailored to staff needs.
Frequently Asked Questions About Reviewing Group Insurance
1. How often should a group insurance policy be reviewed?
At least once a year. A yearly review ensures your cover stays in line with changes to your workforce, business size, and industry. If your staff profile shifts significantly (e.g. younger hires, more families, or high-risk roles), it’s wise to review sooner.
2. What should businesses look for when reviewing group insurance?
Key areas to check include:
Whether the types of cover (life, TPD, income protection, trauma) match employee needs.
The cost per employee compared to industry benchmarks.
Flexibility to scale cover as the workforce changes.
Portability options for staff who leave.
Whether premiums are competitive compared to the market.
3. Can group insurance premiums be negotiated?
Yes. Many insurers will adjust premiums based on your company’s claims history, workforce demographics, or overall size. Using a broker gives you more leverage to negotiate better terms or request alternative pricing structures.
4. How do I know if my staff are over- or underinsured?
The best way is to compare your policy against employee demographics and needs. For example, too much trauma cover for young, single staff could be unnecessary, while not enough income protection could leave them exposed. A broker can provide an objective assessment to balance adequate cover without wasted cost.
5. Why use a broker to review group insurance policies?
Group insurance is complex and policies vary widely between insurers. An independent broker benchmarks your policy, negotiates with providers, and ensures compliance, all while tailoring coverage to your workforce’s needs. This saves time and money and ensures maximum value for both employer and employees.
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