A Simple Guide to Group Protection Benefits
- Excellect
- Oct 17
- 3 min read
Helping your employees — and their families — feel secure when it matters most
Group protection benefits are often overlooked, but they can be some of the most valuable options of cover that a business can offer.
They provide financial security for employees and their loved ones if the unexpected happens - whether that’s long-term illness, critical diagnosis, or even death.
For employers, these benefits build loyalty, show genuine care, and demonstrate a commitment to long-term wellbeing beyond the workplace.
What Are Group Protection Benefits?
Group protection refers to insurance policies arranged by an employer to protect their employees against life’s uncertainties.
The main types include:
Group Life Assurance – pays a lump sum (or pension) to an employee’s family if they pass away while employed.
Group Income Protection – provides a regular income if an employee can’t work due to illness or injury.
Group Critical Illness – pays a tax-free lump sum if an employee is diagnosed with a serious illness listed under the policy (for example, cancer, heart attack, or stroke).
These policies are designed to work together, offering peace of mind and practical support when it’s needed most.
Why Employers Offer Group Protection
Beyond doing the right thing, there are clear business benefits:
1. Stronger Employee Retention and Recruitment
These policies show that your business looks after its people — not just while they’re working, but in difficult times too.
2. Reduced Financial Stress
Knowing their family would be supported if something happened helps employees feel more secure and focused.
3. Improved Wellbeing and Morale
Protection benefits form part of a wider wellbeing strategy — they demonstrate that you value the person, not just the role.
4. Support During Absence
Group Income Protection often includes rehabilitation services to help employees return to work safely and confidently.
Tax and Cost Considerations
Group protection is surprisingly cost-effective. Premiums are typically based on the total payroll and can be treated as a business expense for corporation tax purposes.
Costs vary depending on:
The level of cover and number of employees
The benefit structure (e.g. 4x salary for Group Life)
Age and demographics of the workforce
Added extras such as counselling or second-medical-opinion services
A broker can review your options across the market and help structure cover that fits your budget and workforce profile.
Added-Value Services
Modern protection products often include much more than the policy itself. Many insurers now offer:
24/7 helplines for employees and their families
Mental health support and counselling sessions
Second medical opinions
Wellbeing and fitness resources
These services extend the benefit far beyond traditional insurance - enhancing both physical and mental wellbeing.
Reviewing Your Policy
If your business already has protection in place, it’s worth reviewing it regularly. As your team grows, salaries change, and business needs evolve, cover that was once suitable may no longer fit.
A whole-of-market broker (like Excellect) can review existing arrangements and ensure they remain competitive, compliant, and cost-effective - all at no charge.
Final Thoughts
Group protection may not always grab attention like flashier benefits, but when employees need it most, it’s invaluable.
Providing Group Life, Income Protection, and Critical Illness cover shows genuine care and long-term commitment - helping employees and their families feel safe and supported.
If you’d like to explore what group protection could look like for your business, or review your current policy, we’d be happy to help.
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