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Group Crisis Cover 

Group Crisis Cover provides a one-off lump sum payment to employees to reduce the strain, both financially and emotionally, of dealing with a serious illness or injury.* Employees can use the lump sum for whatever they wish such as a medical treatment, transport costs, rehabilitation expenses or paying off their mortgage.

Group Crisis Cover is a cost effective way to complement any employment package, helping you to attract and retain valuable employees.

Cover is provided 24 hours a day, seven days a week, giving your staff the reassurance that they are protected even if an illness or injury happens when they are not at work.

At a glance

Minimum scheme size

10 employees

If your scheme has 20 or more employees then an AAL may apply.

Minimum annual spend

$2,500 for the whole group 

Maximum sum insured 

$500,000 per employee 

Cover ends 

Age 65 

Benefit type

Lump sum payment


Who is eligible?

At the risk commencement date, eligible employees must be:

  • 15 - 65 years of age at their next birthday
  • Currently at work (working at least 15 hours per week)

*The 23 defined conditions are outlined in the policy document.

What health information do I need to provide?

In many cases health information is not needed. If your group scheme is of sufficient size and has at least a 75% take-up rate of eligible employees, TOWER may provide an Automatic Acceptance Limit (AAL). This means most employees can be covered up to the AAL amount within 60 days of becoming eligible, without providing evidence of health. If they decide to join after the eligibility period, health information will be required.

Where an AAL does not apply, employees will need to provide relevant health information.

Your adviser or TOWER Business Development Manager will let you know if an AAL applies to your group scheme.

When is a benefit paid?

The benefit will be paid if an eligible employee is diagnosed with one of the crisis conditions listed on the following page, providing they survive at least 14 days after the first diagnosis.

The benefit is payable only once, after which cover will end for that employee.

How will the benefit amount be calculated?

There are many options, however the same option must be applied across all eligible employees. Here are a few examples:

  1. Fixed amount of cover
    In this option you can nominate the amount eligible employees will receive if they make a claim. This can provide you with greater certainty of the level of cover as all eligible employees will be covered for the same amount.
  2. A fixed multiple of salary
    In this option you can nominate a multiple of each eligible employee’s salary. This means the claim amount they receive will remain relative to their income.
  3. A reducing multiple of salary related to the age of the employee
    This option recognises that your younger employees may experience a greater financial strain than their older colleagues, if they suffer a critical condition earlier in their working lives.
  4. A set percentage of salary multiplied by the number of years an employee has until retirement
    This option ensures premiums remain cost effective as your employees get older by considering the number of years an employee has until retirement. So the premium is based on the following formula:

    75% x A x B

    Where:
    A is the employee’s annual salary
    B is the number of years before the employee turns 65

What features are included in the cover for no additional premium?

Parental leave

We understand that, even when eligible employees are on parental leave, they are still important to your business. To recognise this, TOWER will continue to make cover available for eligible employees when they are on parental leave, giving them the reassurance that they are covered, and allowing them to relax and welcome their new addition to the family.

What are the 23 crisis conditions covered?

Alzheimer’s disease Aplastic anaemia
Blindness* Chronic renal failure*
Coronary artery bypass surgery* Diplegia
Head trauma Heart attack*
Heart valve surgery Hemiplegia*
Loss of limbs or sight Major organ transplant*
Malignant cancer* Motor neurone disease*
Multiple sclerosis Occupationally acquired HIV infection
Paraplegia Parkinson’s disease
Pulmonary hypertension Quadriplegia
Severe burns Stroke*
Surgery for a disease of the aorta  

For definitions of these conditions please refer to a sample policy document.

*A claim cannot be made for this condition if suffered for the first time within six months of the eligible employee’s risk commencement date.

For more information

With experience in managing employee benefits packages for over 300 employers, you can trust TOWER to provide a high quality solution that meets the needs of your organisation. By taking advantage of the size of your group, your employees can have access to better rates than they might have as individuals.

To discuss how we can help you or for full details of policy terms and conditions (including exclusions), please phone 0800 755 556, Monday to Friday, 8.00am to 4.30pm, or email employee.benefits@tower.co.nz.