Group Income Continuance


Employers can solve a number of critical problems for employees who may have an extended illness which goes beyond the normal sick leave entitlement.

The solution is to have a "Group Salary Continuance Scheme" which would take over after the sick leave entitlement. This can cover up to 75% of the employee's salary and help that staff member to maintain most of their income whilst they are ill. This would enable them to maintain their financial commitments such as mortgage payments, school fees, travel expenses and help them to recuperate without the stress of financial worries.

The premium has now been made tax deductible for employers and FBT has been removed making it more worthwhile to provide cover for staff should their incomes stop or be reduced. (There is also a partial income protection cover built in.)

Advantages to the Employer -

The advantage of having a group salary continuance is having the ability of being able to support your employees in times of personal misfortune where they and their family need financial support if the employee cannot work due to illness or accident. This often results in hardship like being unable to meet commitments such as mortgages and other normal expenses, which leads to more stress being put on the person concerned.

When an employee goes on claim their salary is then paid at 75% of gross income by the Insurer until they can come back to the workforce or in some instances they are paid to the remainder of their working life to the age of 65.

The benefit is highly valued by employees as it secures their financial future.

This takes the responsibility off the employer paying for the employee as it is often uncertain how long the illness will be and if a prescient is started then other employees will expect to have the same financial support.

Should a staff member have a long term illness, Income Protection is a blanket cover which pays staff even on a short term illness and is based on a Doctors certificate stating they cannot work.

Income Protection policies are fully tax deductible as a business expense.