Top Questions About Group Insurance for Staff
- Covermate Life
- Sep 24
- 2 min read
For many businesses, offering group insurance is one of the most practical and cost-effective ways to support employees. Whether it’s life insurance, income protection, or total and permanent disability (TPD) cover, group insurance provides financial security and peace of mind for staff and their families.
At Covermate Life, we’re often asked a range of questions from business owners who want to make sure they’re protecting their employees while keeping premiums under control. Below, we’ve answered the most common questions to help you better understand group insurance and how it could benefit your workplace.
1. What is group insurance for staff?
Group insurance is a policy arranged by an employer to cover multiple employees under one plan. Instead of staff arranging cover individually, the business provides a single policy that offers benefits like life insurance, income protection, or TPD.
2. Why should employers offer group insurance?
Providing group insurance demonstrates that you value your employees’ wellbeing. It helps attract and retain staff, supports workplace culture, and can sometimes offer more competitive pricing compared to employees buying cover on their own.
3. Is group insurance cheaper than individual policies?
In many cases, yes. Because risk is spread across a larger group, premiums can be lower compared to individual policies. Businesses can also negotiate terms with insurers to achieve better value.
4. What types of cover are included in group insurance?
Typical inclusions are:
Life insurance – pays a lump sum to beneficiaries if an employee passes away.
TPD insurance – provides financial support if an employee becomes permanently disabled and unable to work.
Income protection – replaces a portion of an employee’s income if they are unable to work due to illness or injury.
5. How do I know if my business has the right level of cover?
The right cover depends on the size of your business, the demographics of your workforce, and your budget. Regular policy reviews are essential to ensure your employees are adequately covered without your business overpaying for unnecessary benefits.
6. Can employees take their cover with them if they leave?
This depends on the insurer and the terms of your policy. Some policies allow staff to convert their cover into an individual policy when they leave the company, while others do not.
7. How often should we review our group insurance policy?
We recommend a review at least annually or whenever there are major changes to your business, such as expansion, downsizing, or significant workforce changes. This ensures your policy remains relevant and cost-effective.
8. How can I avoid paying too much for group insurance?
The best way is to regularly compare your policy against others in the market. Working with an insurance broker like Covermate Life ensures your cover is benchmarked, negotiated, and tailored to your needs—so you don’t pay for benefits your staff don’t need.
Final Thoughts
Group insurance is a valuable benefit that protects both your employees and your business. By asking the right questions and reviewing your policies regularly, you can strike the right balance between providing meaningful cover and managing costs effectively.
At Covermate Life, we can review your current policy, compare it against market options, and help you secure a policy that fits your business and your team.
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