Employment Hero has recently partnered with Integrity Life to bring group insurance plans to small and medium businesses. But first things first – what is a group insurance plan? And how do they benefit Aussie businesses and their employees?

What is a group insurance plan?

Group insurance plans are pretty much exactly what they sound like; insurance for a group of people, rather than an individual. These policies can cover most types of insurance, but life and health insurance are the most popular. Group insurance plans are typically cheaper than personal insurance because the policy covers a larger amount of people, mitigating the risk to the insurer.

Do I need a group employment plan?

Yes and no. Depending on the individual, insurance is generally a good idea. However, many Australians find it difficult to cover the premiums of some policies. So while things like income and life insurance sound like a great idea, they’re not always financially possibility – and that’s where group insurance plans come in. 

Group insurance plans are generally cheaper than individual retail offers because the risk to the insurer is reduced with each new member, but before you start sending a mass email to your nearest and dearest, there’s a catch. Group insurance plans must be managed by an entity, like a company or association. 

Who can set up a group insurance plan?

Until recently, insurance companies only provided larger organisations with group insurance products. However, small and medium businesses can now provide their employees with group insurance plans through Integrity Life.

Employment Hero has partnered with Integrity Life to provide group insurance plans to small and medium businesses. Integrity 5+ gives businesses with 5 to 50 employees a product to provide their employees with income and life insurance, while also providing the business protection to the employer.

How a group insurance plan benefit my business?

There are a number of reasons that group insurance plans benefit employers. Employers can also improve their employee value proposition by providing a group insurance plan. Providing employees with the cover should they need it not only increases retention, it also improves the quality of the candidates willing to work with you. Cheaper insurance is a considerable perk! Plus, the employer is also usually included in the plan. 

Depending on the type of coverage provided under the group insurance plan, businesses also benefit from the policy. If an employee is unable to work, Integrity 5+ provides the business a 20% monthly income benefit for the duration of his or her absence.

Some employers also want to provide a working environment that feels more like family than work. Providing employees with the confidence that they (and their family) are protected if they have an accident at work is an excellent way to inspire loyalty and the benefits it brings.

What does a group insurance plan cover?

Group insurance plans vary from plan to plan.  Employment Hero customers are eligible for a discount from Integrity Life on the Integrity 5+ Group Insurance Plan, with tax-deductible premiums starting from 0.9% of their payroll. Coverage includes:

  • Employees receive 80% of their monthly income provided each month for a period of 12 months following an absence of 30 days or more
  • Businesses receive 20% monthly income benefit to cover the missing employee for the same period.
  • In the event of death or the diagnosis of a terminal illness, the employee and/or their beneficiary will receive a lump sum of $200,000.

If you would like to obtain a quote or learn more about protecting your business and employees, please email financialservices@employmenthero.com and we’ll be in touch.