Insurance supports health and wellbeing

With employee wellbeing being a heightened focus for employers at the moment, take a moment to consider how financial wellbeing plays a key role, alongside both mental and physical health, as part of everyone’s general wellbeing.

A significant injury or longterm illness for most employees could dramatically impact their overall wellbeing through the financial stress often associated with such a lifechanging event. Any extended period out of work means salaries will likely cease after sick and annual leave have been utilized, (if the employee accumulates these as a permanent employee).

In the case of members’ on hired workers though, they may well have built-in salary loadings to account for such leave benefits, and their salary could stop immediately following a major injury or illness. There are of course many insurance options for individuals to consider, with life/disability/trauma and income protection being the most comprehensive options but therefore most expensive.

However, the cost can be a barrier for many people, with only 35% of Australians aged 1869 having a life insurance policy and only 15% having disability/income protection insurance/critical illness cover. There is undoubtedly a large number of working Australians who are not fully protected, should such a major life event occur.

What options do I have to support my employees?

Business owners and leaders can support their employees in a number of ways to offer financial support and there is a cascading range of insurance products, with corresponding levels of cover and price points to consider. From the highest to the lowest, these include the following:

Group life and income protection - generally will include death, disability, and critical illness lump sum payments as well as income replacement up until retirement age

Best suited for businesses with 25+ employees

Purchased by the business and extends to cover all permanent employees

Priced on a bulk basis and average age ranges

Selective individual life and income protection - cover as above

Purchased for selected employees only and therefore priced on a case by case basis

Group personal accident and illness - generally will include death, total permanent disability, significant injury lump sums (loss of limb or eye for example), and sickness, with income replacement up to 104/154 weeks

Significant cost difference compared with the life and income protection options as the maximum income benefit is typically 154 weeks

Lower lump sum benefit amounts for significant injury(s)

Bill cover personal accident and illness similar cover to group personal accident, but with the weekly/monthly benefit being just for monthly bills, not full income replacement

Lower lump sum benefits amounts for injuries

Fixed monthly benefit or the total of monthly bills for up to 24 months

Covers business or general living expenses such as electricity, gas, gym membership, mortgage, or rent

How can I explore my options and what does it cost?

Life insurance advice can only be provided by a licensed life insurance broker and BrokersOnline can connect you with a specialist advisor from one of our partners.

If you are considering your first step into insurance as an employee benefit, then we at BrokersOnline can assist you with group personal accident/bill cover options that can start from $150 per employee per year.

Article by Mark Laudrum

Head of Commercial & Retail Broking BrokersOnline

mark@brokersonline.co +61 2 8294 7569 +61 499 011 472 www.brokersonline.co

About Mark

With a recruitment insurance broking career beginning in Melbourne in September 2004 and advising agencies and industry bodies over the years since, Mark has worked with hundreds of agencies across a wide range of disciplines and sectors.