Employer Group Schemes
Attract, retain, and protect your team with tailored workplace insurance solutions
Employer group schemes provide access to group-priced life, trauma, income protection, TPD, and health insurance through leading New Zealand insurers including AIA, Chubb, nib, and Southern Cross. They are commonly used by SMEs and growing businesses, and can also be structured for mid-market employers with more complex workforce needs.
DBI LTD, Financial Adviser (FSP 1007984), operating under AIA Thrive Limited (FSP 665291).
Key Facts
Group Discounts
Typically 10–30% cheaper than individual cover
Automatic Acceptance
Available for larger groups (no medical underwriting up to limits)
Flexible Funding Options
Employer-paid, shared, or voluntary
Tax Treatment
Premiums often tax-deductible; FBT may apply (structure dependent)
Benefits for Your Business
Offering group insurance benefits isn't just good for employees. It's good for your business.
Attract and retain quality staff with competitive benefits package
Improve employee wellbeing, morale, and engagement
Reduce absenteeism through faster access to treatment
Support a culture of care and loyalty
Business tax advantages on premiums (confirm with your accountant)
Group discounts, typically 10-30% cheaper than individual cover
Easier than employees arranging cover individually
Enhance your employer brand and recruitment story
💡 Insight: In New Zealand's competitive job market, employee benefits can be the difference between hiring your first choice candidate or losing them to a competitor.
What We Can Include in Your Group Scheme
Group schemes can include a mix of risk insurance (life, trauma, TPD, income protection) and health insurance. You choose what to offer based on your budget and employee needs.
Group Risk Insurance (AIA & Chubb)
Group risk insurance is typically arranged through AIA or Chubb, offering automatic acceptance for eligible groups and simplified administration.
Group Life Insurance
Provides a lump sum to employees' families if they die or are diagnosed with terminal illness.
What it covers:
- •Death benefit (lump sum payment)
- •Terminal illness benefit (typically 12-24 months prognosis)
- •Optional funeral support benefits
- •Optional dependent children's cover
Typical cover amounts:
- •1-4 times annual salary
- •Or fixed amounts ($50k, $100k, $200k per employee)
- •Often automatic acceptance up to $250k-$500k (no medical required)
Best for:
- •All employees with families or dependents
- •Core benefit in most group schemes
- •Provides peace of mind and family protection
Learn more about life insurance.
Group Trauma Insurance
Provides a lump sum if employee is diagnosed with serious illness like cancer, heart attack, or stroke.
What it covers:
- •Cancer (all stages)
- •Heart attack
- •Stroke
- •Major organ transplant
How employees use it:
- •Medical treatment and recovery costs
- •Time off work without financial stress
- •Mortgage or debt repayments
- •Family support during illness
Typical cover amounts: $25k - $100k per employee. Often automatic acceptance up to $50k-$100k.
Best for:
- •Providing comprehensive medical protection
- •Supporting employees through serious illness
- •Complementing health insurance
Learn more about trauma insurance.
Group TPD Cover
Provides a lump sum if employee becomes totally and permanently disabled and can never return to suitable work.
What it covers:
- •Severe injuries preventing any work
- •Progressive diseases (MS, Parkinson's)
- •Permanent mental health conditions
- •Loss of limbs or critical function
How it helps:
- •Pays off mortgage or debts
- •Funds home modifications
- •Provides long-term financial security
- •Supports family during transition
Typical cover amounts: 1-3 times annual salary. Often automatic acceptance up to $250k-$500k.
Best for:
- •Higher-risk occupations (trades, manufacturing)
- •Comprehensive employee protection
- •Long-term disability scenarios
Learn more about TPD cover.
Group Income Protection
Provides monthly benefit replacing portion of salary if employee can't work due to illness or injury.
What it covers:
- •Monthly payments (typically 60-75% of salary)
- •Illness and injury (not just accidents)
- •Short-term and long-term disability
- •Continues until employee returns to work or benefit period ends
Typical structure:
- •Wait period: 13 or 26 weeks
- •Benefit period: 2 years or to age 65
- •Automatic acceptance common
Best for:
- •Replacing income during extended illness
- •Supporting families through recovery
- •Complementing ACC (which only covers accidents)
- •Essential for businesses with physical roles
Learn more about income protection.
How You Can Structure Risk Benefits:
Option 1: Core Employer-Paid Benefits
Company pays 100% of premiums for base level cover (e.g., 2x salary life insurance for all employees)
Option 2: Core + Voluntary Top-Ups
Company pays base cover, employees can purchase additional cover at group rates (e.g., company provides $50k trauma, employees can buy up to $150k extra)
Option 3: Fully Voluntary
Employees pay 100% but access group pricing and easier acceptance (company facilitates but doesn't pay)
Most NZ employers choose Option 2: provide core cover as a benefit, allow voluntary top-ups for those who want more.
Group Health Insurance (Southern Cross & nib)
Group health schemes are commonly arranged through Southern Cross or nib workplace plans, providing employees with private healthcare access, faster treatment, and specialist care.
What it typically includes:
Hospital & Surgical Cover:
- •Private hospital treatment
- •Surgical procedures
- •Specialist consultations
- •Diagnostic tests (MRI, CT scans, ultrasounds)
- •Hospital accommodation (private rooms)
Cancer Treatment:
- •Comprehensive cancer care coverage
- •Access to treatments not funded by Pharmac (depending on plan)
- •Specialist oncology care
- •Faster diagnostics and treatment
Optional Day-to-Day Benefits:
- •GP visits
- •Prescriptions
- •Dental care
- •Optical (glasses, eye tests)
- •Physiotherapy
- •Specialist consultations
Provider Networks & Tools:
- •Large networks of specialists and hospitals
- •Digital claiming through apps
- •Pre-approval systems
- •Direct billing to insurers
Pre-Existing Condition Coverage:
For LARGER groups (typically 15+ full-time employees), some workplace health schemes may offer:
- •Reduced stand-down periods for pre-existing conditions
- •Or immediate cover for pre-existing conditions from day one
For SMALLER groups (under 15 employees), standard pre-existing condition exclusions typically apply (usually 3-year stand-down).
This varies significantly by insurer, plan type, and group size. We'll explain exactly what's available for your specific situation.
Minimum Group Sizes:
Typical minimum requirements for NZ group health insurance:
- •Southern Cross Workplace Health: Minimum 5 full-time employees
- •nib Workplace Health: Minimum 5 full-time employees
- •Requirements may vary by specific plan and employer industry
How It Works
Discovery
We assess your business size, workforce demographics (ages, occupations), budget, and benefit goals.
Design
We recommend a benefits mix (life, trauma, income protection, health, TPD) and coverage levels suited to your team and budget.
Quote & Insurer Selection
We compare options from major NZ insurers:
- •Group Risk: AIA, Chubb
- •Group Health: Southern Cross, nib
And help you choose the best fit for your needs.
Underwriting & Acceptance
- •Many schemes use automatic acceptance levels (no medicals required up to certain amounts)
- •Above automatic acceptance limits, medical questions may be required
- •For larger groups, health schemes may offer enhanced acceptance for pre-existing conditions
Implementation
- •Employees are enrolled
- •Premium structure set up (employer-paid, cost-sharing, or voluntary)
- •Communication materials provided for staff
- •Digital enrollment if available
Ongoing Support
- •We assist with claims
- •Annual scheme reviews
- •Adjust coverage as your team grows
- •Add new employees seamlessly
- •Handle renewals and changes
💡 Insight: Simple to set up, easier for employees than arranging individual cover, and ongoing administration is minimal.
Automatic Acceptance & Group Size
Automatic Acceptance Explained
Automatic Acceptance means employees can join the scheme without medical underwriting, up to insurer-defined limits.
Typical thresholds:
Group Risk Insurance (Life, Trauma, TPD, IP):
Available from around 10 eligible members, depending on insurer and workforce profile.
Group Health Insurance:
Enhanced or guaranteed acceptance is more common for groups of 15+ employees, with potential reductions to pre-existing condition stand-downs.
Acceptance limits, eligibility, and terms vary by insurer, benefit type, and group demographics.
Who Can Be Covered?
| Workforce Type | How It's Structured | Key Notes |
|---|---|---|
| Permanent Employees | Employer-paid or shared cost | Eligible for subsidised schemes and automatic acceptance |
| Contractors / Commission Teams | Voluntary (self-funded) | Group-discounted rates, no employer subsidy |
| Mixed Workforces | Hybrid structure | Common for real estate, sales, and professional firms |
Important: Contractors and self-employed team members may be eligible for non-subsidised group arrangements at discounted rates. These are facilitated by the business but paid for individually.
What It Costs
Group scheme pricing depends on workforce demographics (age, gender, occupations), benefit types chosen, coverage levels, and whether cover is employer-paid or voluntary. Group schemes typically offer 10-30% discount compared to individual cover because risk is spread across the group.
Funding Options
Employer-Paid
Company pays 100%
Advantages:
- •Maximum employee value perception
- •Strongest recruitment and retention tool
- •Simplified administration (no employee deductions)
- •Clear employer brand message
Tax treatment:
- •Premiums generally tax-deductible
- •FBT may apply, depending on benefit type
Best for:
- •Companies prioritizing employee attraction/retention
- •Businesses with strong cash flow
- •Employers wanting clear competitive advantage
Cost-Sharing
Shared between employer & employee
Common structures:
- •Company pays core life/trauma, employee pays for health
- •Company pays employee cover, employee pays for family add-ons
- •50/50 split on premiums
- •Tiered by role or seniority
Advantages:
- •Balances cost and benefit value
- •Employees appreciate company contribution
- •More affordable for business
- •Flexible upgrade options
Best for:
- •Most NZ businesses
- •Balancing budget with competitive benefits
- •Allowing employee choice and flexibility
Voluntary
Employee pays, company facilitates
Advantages:
- •No cost to employer
- •Employees still get group discounts (10-30% cheaper)
- •Automatic acceptance benefits
- •Easy payroll deduction
- •Company seen as facilitating valuable benefit
Tax treatment:
- •Employees pay with after-tax income
- •No tax implications for employer
Best for:
- •Budget-conscious businesses
- •Start-ups or small businesses
- •Still offering value through group access
Tax Considerations
- •Employer-funded group insurance premiums are generally tax-deductible
- •Fringe Benefit Tax (FBT) may apply, particularly for:
- ◦Health insurance
- ◦Income protection
- •Tax treatment varies by scheme structure, ownership, and benefit type
- •We work alongside your accountant to ensure group schemes are structured as tax-efficiently as possible
Who Should Consider Group Schemes?
Businesses with 5+ employees
Minimum group sizes vary by insurer and product. Most health schemes require 5+ full-time staff; some risk schemes start from 10+ employees.
Employers competing for skilled talent
In competitive industries or tight labour markets, employee benefits can be the deciding factor in recruitment.
Companies with higher-risk roles
Trades, manufacturing, field staff: occupations with higher injury risk benefit significantly from group coverage.
Professional firms
Law, accounting, engineering firms use group schemes to enhance total remuneration packages beyond just salary.
Growing businesses (10-50 staff)
Perfect size for group schemes, large enough for good rates, small enough to implement easily.
Employers prioritizing staff wellbeing
Businesses that genuinely care about employee health, financial security, and work-life balance.
Even small employers (5-10 staff) can often access group pricing and benefits. Eligibility criteria differ by insurer and product. We'll find what's available for your business size.
Our Focus: We specialise in SME and growing businesses, while also supporting mid-market employers with larger teams, multiple locations, and tailored benefit tiers.
Real Employer Examples
Tech Start-Up (15 employees)
Challenge:
Competing with larger companies for developers and sales staff
Benefits Implemented:
- •Employer-paid group health insurance (hospital & surgical)
- •Core life insurance (2x salary)
- •Voluntary trauma and income protection top-ups at group rates
Cost: ~$150/employee/month (employer-paid portion)
Outcomes:
- Recruited senior developer who chose them over higher-paying competitor
- Reduced sick leave by 15% (faster access to treatment)
- Strong retention, only 1 resignation in 18 months
- Employees value benefits at $3,000+/year
- Competitive advantage in recruitment
Manufacturing Company (50 employees)
Challenge:
Physical work environment, aging workforce, difficulty retaining skilled tradespeople
Benefits Implemented:
- •Core life, trauma, and income protection (employer-paid)
- •Voluntary health insurance (cost-sharing 50/50)
- •Enhanced cover for supervisors and managers
Cost: ~$180/employee/month (full package, employer portion ~$110/employee)
Outcomes:
- Major trauma claim paid $75k to employee diagnosed with cancer. Employee and family extremely grateful
- 3 income protection claims helped staff during extended illness
- Retention improved by 30% year-over-year
- Recruitment easier, benefits package now highlighted in job ads
- Morale and loyalty significantly improved
Minimum Group Sizes & Eligibility Requirements
Different insurers and products have different minimum requirements. Here's what to expect:
Group Health Insurance (Southern Cross, nib):
- •Minimum: 5 full-time employees
- •Full-time defined as: 30+ hours/week typically
- •Pre-existing condition benefits: May be available for groups 15+ employees (varies by insurer and plan)
Group Risk Insurance (AIA, Chubb):
- •Minimum: Typically 5-10 employees (varies by product)
- •Automatic acceptance: Common up to certain amounts ($250k-$500k life, $50k-$100k trauma)
- •Full-time or part-time: Some schemes cover part-time employees pro-rata
Casual or Contract Staff:
- •Generally excluded from group schemes
- •Must be permanent employees
- •Some schemes have minimum service period (e.g., 3 months employment)
💡 Insight: Even if you're below typical minimums, we can explore options. Some insurers offer flexible solutions for smaller groups or can structure voluntary schemes for very small teams.
Frequently Asked Questions
Common questions about Employer Group Schemes and workplace insurance in New Zealand.
How many employees do we need to start a group insurance scheme?
Do employees need medical checks to join a group scheme?
Can employees include their family members?
What happens if an employee leaves the business?
How are pre-existing conditions treated under group schemes?
Is group insurance the same as ACC?
Do employee claims affect everyone's premiums?
Can group insurance benefits be tailored by role or seniority?
Can new employees be added during the year?
Is Fringe Benefit Tax payable on group insurance?
Have more questions?
Let's talkBuild a Benefits Package Your Team Will Value
Get a tailored quote for an employer group scheme built around your business, your budget, and your people. We'll compare options from AIA, Chubb, Southern Cross, and nib, and explain everything in plain English.