Group insurance generally provides standardised coverage to all the members under a single policy. It generally forms part of an employment package designed to attract and retain talent for the business.
If you are an employer looking for a guide on how to implement group insurance in your organisation—this article will tell you everything you need to know.
Key Takeaways
- Typically, Group Insurance has three main coverage, death, permanent and temporary disability.
- Assessing the risks associated with the roles of your employees is crucial to finding the right coverage.
- Consulting a Group Insurance expert will help you effectively implement the insurance.
- Clearly communicating the benefits of group Insurance to your employees helps it to be effective.
Step 1: Understand What Group Insurance Covers
The first step to effectively implementing group insurance is to understand the different types of coverage. This will help you determine which type of coverage is suitable for your employees.
What types of policies are available
Depending on the coverage needs of your employees, you may choose between the following:
Life insurance
Group life insurance (death cover) pays a lump sum benefit to your employees’ beneficiaries in case of death or diagnosis of terminal illness. The policy benefit can be used as financial support for your family, to pay outstanding debts, or as a source of funds for your kid’s education.
Income protection
Group income protection (or group salary continuance) temporarily replaces the employee’s income when they are unable to work due to an illness or injury. This policy can pay up to 70% of the employee’s pre-disability income until the coverage period expires or when they can return to work – whichever occurs first.
Total and permanent disability (TPD)
Group TPD insurance pays a lump sum benefit to the employees when they become permanently disabled and are unlikely to get back to work. The employee must also meet the group TPD policy’s definition of disability to be eligible for a TPD claim. The TPD definition can be either:
- Own occupation – due to sickness or injury, the employee is unable to work in the same job function (usually for three consecutive months) and is unlikely to return to work ever again.
- Any occupation – due to sickness or injury, the employee is unable to work in any job that is reasonably suited to the employee’s education, training, or experience (usually for three consecutive months) and is unlikely to return to work ever again.
- Home duties – due to sickness or injury, the employee is unable to perform activities of daily living, such as eating, bathing, or dressing (usually for three consecutive months), and is unlikely to do home duties ever again.
Who is eligible for coverage under a group plan
Typically, as the employer, you control who among your employees receives group coverage. In most companies, they are:
- Full-time and/or part-time employees
- Contractors, freelancers, or PAYG workers who meet the minimum required working hours
- Company directors
It is important to note that you generally cannot select individual employees who will be eligible for this cover, but instead, it needs to be applied in broad categories, such as all partners or all staff. Speak with an adviser
Step 2: Assess the Needs of Your Team
Several factors will help you assess your team’s need for group insurance coverage. They are:
- Current age
- Physical and mental health risks at work
- Family status
- Level of income
- Employment status
Identifying these factors helps in determining the right coverage for your team. Many people are unable to access insurance through traditional routes due to their health, but group insurance can provide a highly valuable alternative, which is one of the reasons staff value it.
Step 3: Define Your Objectives
Setting up group insurance also depends on the company’s budget and the desired type of insurance protection. Flexible terms and a higher amount of coverage will typically cost more in premiums.
When you work with an expert group insurance adviser, you will be presented with options that match your budget and objectives.
Step 4: Compare Providers and Policy Options
To get the best group insurance for your employees, your adviser will solicit multiple quotations and policy options from different insurance providers. The best way of looking at this is as a tender process. This gives you a better overview of what best suits your employees.
When choosing the right group insurance policy, you are required to be diligent in comparing insurance providers and the types and terms of policies.
Step 5: Consult a Licensed Insurance Adviser
It can be a complex process when you take out group insurance for employees. In Australia, there are expert group insurance advisers, such as Curo Financial Services, who can save you from all the guesswork and ensure that you get the right coverage.
Services from a group insurance adviser can include:
- Insurance needs analysis
- Members risks assessment
- Evaluation of policy options
- Expert insurance advice
- Policy administration and management
Step 6: Finalise Policy Details and Enrol Your Team
When your company has decided on group cover, the process of applying for it and setting it up is quite straightforward and should not take long to complete. You will receive confirmation regarding the amount of coverage, benefit term, and waiting period. As a policy owner, the company will have full control over the group insurance and will likely have a single master policy for all the members.
Step 7: Communicate Benefits to Your Employees
An important step is relaying the policy’s terms and benefits to all the members. Letting your employees know of their coverage and limits will help them access the financial support that is provided by the company during times when they cannot work due to illness or injury.
By doing this, it also limits the enquiries from the employees about the cover when they plan on processing a group insurance claim.
Step 8: Review and Maintain Your Group Policy
Ensuring an updated and active group insurance policy is part of your duty as the employer. Having timely payments of the premiums and an updated list of the participating members saves you a potential headache when an employee processes a claim.
Working with an expert group insurance adviser can also do this for you.
Protect the People Powering Your Business with Curo
Your business operation relies on your team. Protecting them and their families – financially – further boosts their motivation to work and loyalty to the company.
Let us help you find the right group insurance policy for your employees. Our team at Curo Financial Services has decades of experience providing expert group insurance advice to businesses of all sizes. If you want to explore your company’s options, contact us.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
Factual Advice Disclaimer
The information I have provided you is purely factual in nature and does not take account your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require financial product advice you should consult a properly licensed or authorised financial adviser.
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Last Updated on February 23, 2026 by Brent Satill
