What is group insurance?
Group insurance is simply a form of personal protection insurance that is provided by a business as a benefit to its employees. Companies choose to take out group insurance for two reasons:
- It benefits employees by giving them a safety net if they lose their income through illness or injury.
- It benefits employers by limiting the financial risk of long-term employee absence from work.
Group insurance is available for groups of 15 or more employees.
How does group insurance work?
The most common form of group insurance is group salary continuance (GSC). This is a form of income protection insurance. It provides regular payments of up to 75% of an employee's regular salary while they are absent from work due to illness or injury (after a 90 day waiting period).
For employers, this means that during a long-term employee absence, their liability is limited to paying out accrued sick leave. Some employers also choose to pay a replacement salary during the 90 day waiting period.
GSC is also considered a great employee benefit as the employees have this important cover in place to provide them with financial security, but without the usual cost.
How much does group insurance cost?
The cost of group insurance depends on the number of employees to be insured and their profile, including age, gender, occupation type and payroll. Your CRA group insurance specialist will compare products from different insurers to get you the best policy to suit your requirements, at the best price.
What's the next step?
Talk to a CRA group insurance specialist. We'll guide you through the entire process, including applying for the required insurances. We'll also be here for your employees if they ever need to make a claim.