Group Income Protection Insurance can be a complicated product, and not all policies are equal. When reviewing insurance arrangements, or looking to introduce insurance for the first time, it is important to understand what is actually covered.

 

IFS Insurance Solutions has a division specialising in organising Group Income Protection policies with the expertise and knowledge to leverage the market for the best outcomes.

 

What is Group Income Protection Insurance?

 

Group Income Protection Insurance is a type of insurance policy usually taken out by a company on behalf of its employees as part of an enterprise bargaining agreement (EBA) or voluntarily by a group of employees (conditions apply).

 

It protects workers by providing a replacement income in the event they are unable to work due to an accident or illness, enabling them to continue to meet the costs of living without the need to utilise (after the excess period) any accumulated sick leave, annual leave, long service leave or savings.

 

Put simply, income protection protects a worker’s earning capacity, allowing them to maintain their standard of living during a difficult period when they should be focusing on their health, not their bank balance.

 

Types of Group Income Protection polices

Group Income Protection policies can take many forms including:

Entire workforce / through an EBA 

A Group Income Protection policy can be taken out by a company to cover its entire workforce or included as part of an EBA. A policy may be paid for entirely by the employer, entirely by the employees, or the cost shared between them.

Union membership

Group cover can be arranged to cover an entire union membership, or subset of the membership.

 

Examples of this type of cover include unions organising Journey Injury insurance for their entire membership.

Voluntary group

A Group Income Protection scheme can be implemented where employees have the option to ‘opt-in’ for the insurance on a voluntary basis (minimum participation rates apply).

 

Policy Design & Pricing

The design and cost of Group Income Protection policy is affected by a number of factors, including: