One such measure is through the provision of salary continuance (or income protection) insurance, which can be funded by employers on behalf of their employees. It is designed to help an employee in the unfortunate case that they become injured or ill in a way that renders them unable to return work for a period of time.
While the benefits to employees are clear (providing them, if eligible, with guaranteed income while they are unable to work), for employers, the returns may also be significant.
To start with, premiums are generally tax deductible and do not attract fringe benefits tax. Salary continuance insurance may also act as an independent framework to manage employee absences (assisting with the “how much longer should we give him/her?” conversations) and enhancing the likelihood of successful return-to-work outcomes.
Group insurance is a type of insurance policy that provides cover to a group of people. Typically, the individuals in the group are employees of the same company.
Group insurance can provide important protection for the individuals in the group, sometimes at a lower cost than they could negotiate themselves.
Historically, you would have needed 50, but you can now obtain automatic acceptance group insurance for 5 or more employees
Automatic acceptance is where members in a group are automatically provided with a certain level of insurance cover, without having to be individually assessed. There’s a maximum that applies for the policy, and members need to meet some criteria, like being in active employment.
The automatic acceptance limit is set at the policy level, and depends on the size of the plan, the benefit structure and the eligibility criteria.
It depends on the level and breadth of cover, but as a rough guide between anywhere between 0.5 – 3.0% of payroll.
For more information and / or a quote for your business, please get in touch with us for an initial discussion.