Working together to achieve more



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Workplace Insurance

Working together to achieve more A Sovereign workplace plan is designed to be an asset to your business, adding to the benefits you can offer your staff. You can help to create a secure future for your employees and their families by providing protection through a workplace insurance plan and help your employees feel valued in their roles.

Protect your staff and reap the rewards When staff feel valued, they re more likely to be committed and value your company in return sharing in your vision to succeed. Research indicates that companies with the best people-management practices can generate nearly twice as much value to shareholders as their average competitors. i Providing a Sovereign workplace plan will certainly add value for your employees and present numerous benefits for your company: Loyalty, morale and productivity Create a more committed, involved and effective workforce. A sense of future, a sense of belonging and an organisation that is a fun place to work are all highly important drivers in motivating staff. Business psychology studies also show that staff with high morale and high engagement result in significantly less absenteeism increasing your business productivity and bottom line. Effective recruitment and retention It costs between 25% and 150% of the average worker s salary to replace them. ii With low unemployment and increased market competition added to high costs of recruitment and training the right package of benefits is essential to attract and retain skilled staff. A powerful salary negotiation tool Reward your staff aside from salary and keep ahead of your competitors. When considering their employment future, employees look at what an organisation has planned for them in the medium to long term. iii The right workplace plan can be a powerful negotiating tool and could be used to reduce demand for salary increases by extending benefits to include cover for an employee s family. Minimised sick leave liability Avoid large accumulations of sick leave or negotiating extended sick leave entitlements. In 2005, 10% of those making a claim for work-related injury spent time away from work. iv Don t be caught out. A Sovereign workplace income protection plan can help with unexpected illnesses and injury, and may help in getting your staff back to work more quickly. Support in times of tragedy When an employee suffers a major injury, accident, or even death, it can cause a terrible setback for them and their family. Workplace insurance can provide vital financial support in times of need and also sends an important message of reassurance to your staff, helping rebuild morale.

Choosing a plan that s right for you The right workplace plan is one that offers the best possible package of benefits to suit the specific needs of your company and employees. Our Workplace team will work closely with your adviser to ensure the optimum workplace insurance solution is in place to benefit your business. Firstly, you can choose to offer either a subsidised plan (funded by you, the employer) or a non-subsidised plan (staff pay for their own) or a combination of both. Membership is Premiums are paid by Application process SUBSIDISED Compulsory Employer / Organisation (usually annually) Organise a quote through your adviser who will take you through the proposal. NON-SUBSIDISED Voluntary Employee / Member Employees simply need to complete a short application form available from your adviser. Subsidised Plans With subsidised workplace plans, the employer meets all costs while eligible employees enjoy the benefits. You must have a minimum of 10 eligible employees or members in order to be covered under a subsidised plan. In many cases eligible employees enjoy automatic acceptance of cover, with no forms to complete. With every subsidised plan, we will automaticaly set up a non-subsidised workplace plan so that your employees can take advantage of your company s bulk buying power for any additional insurance needs they may have. Non-subsidised Plans Non-subsidised workplace plans enable your employees to join by their own choice, and they pay either all, or a large part, of their premiums (in which case you select the percentage your company will pay). Together with their workmates, an employee benefits from your company s bulk buying power and enjoys preferential terms and lower premiums not usually available to individual clients. We do the work; you enjoy the benefits Our Workplace team works closely with your adviser to tailor-make and implement the optimum workplace insurance solution for your business. Once we have the right plan in place for your company, our specialist staff and administration systems provide an ongoing management service to ensure that everything operates smoothly, with minimum impact on your time.

Working with your adviser, we ll help you to find the workplace plan with the most relevant benefits for your employees. The products offered through subsidised and nonsubsidised workplace plans are listed below: Life Insurance provides a lump-sum payment in the event of death or terminal illness. Essential for those with family or financial commitments that could be jeopardised should an income earner die. An optional Total Permanent Disablement benefit can also be added to your life insurance cover, providing a lump-sum payment for members if they become unable to ever work again due to accident or illness. A simple and inexpensive way to arrange valuable life cover for your team. Total Permanent Disablement Benefit provides a lump-sum payment in the event of a total permanent disablement through accident or illness causing an employee to be unable to ever work again. Income Protection protects your employees greatest asset their power to earn. Provides an income (up to 75% of pre-disability salary) for an employee should they become unable to work due to illness or injury. Choose from a range of options within the product to suit your budget. Each plan includes proactive rehabilitation assistance to help get your staff back to work as quickly as possible. Living Assurance provides a lump-sum payment to aid employees in the event of critical illness. Choose from Essential, which covers 9 major critical conditions such as heart attack, stroke and cancer, or Comprehensive, which extends cover to 35 critical conditions, such as Alzheimer s disease, dementia and major burns. A simple way to provide your employees with trauma cover when they suffer one of the listed conditions. For further details please refer to the relevant sample policy document available on request. Special conditions and exclusions may apply. Next steps This brochure gives you a brief overview of how Sovereign s range of workplace plans can benefit your staff and, in turn, your company. We now recommend you discuss your preferences with a professional adviser who has extensive experience and in-depth knowledge of our products and services. Together with your adviser, we can undertake a comprehensive review of your current situation and consider which options best suit the needs of your particular company and employees. Your adviser can then provide you with a specific cost and implementation proposal tailored to your budget and situation.

A sense of belonging to an organisation, to a community or family is one of the most highly rated drivers in motivating staff and keeping them happy. v Benefit programmes could be highly cost effective and employees who participate are more likely to stay within the company. vi

About Sovereign Sovereign is one of New Zealand s leading financial services providers, and is part of the ASB Group of Companies owned by the Commonwealth Bank of Australia (CBA). As one of New Zealand s largest workplace insurance providers, Sovereign helps over 450 of New Zealand s leading companies to protect and provide peace of mind for over 200,000 employees. We offer a range of workplace solutions allowing you to tailor a plan most suited to your company s specific needs and budget. Sovereign can also offer your employees a range of individual products and services including Health Insurance, Savings and Investment products, and flexible Home Loan options. FOR MORE INFORMATION, VISIT www.sovereign.co.nz Sovereign Assurance Company Limited (Sovereign), the policy insurer, is part of the Commonwealth Bank of Australia group of companies and is a related company of ASB Bank Limited and its subsidiaries (the Banking Group ). Neither the Banking Group, the Commonwealth Bank of Australia, nor any other company in the Commonwealth Bank of Australia group, nor any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries. Source i. Unlimited/JRA Best Places to Work in New Zealand Survey - March 2006. ii. NZ Sales and Marketing Institute iii. Unlimited/JRA - Best Places to Work in New Zealand Survey 2004 iv. Department of Labour, Work Related Injury Claims 2005 v. Unlimited/JRA Best Places to Work in New Zealand Survey 2005. vi. Marriott makes the Business Case for an innovative Rewards Strategy, Karl Fisher, Steven E Gross, and Helen M Friedman, Journal of Organisational Excellence / Spring 2003. Sovereign Assurance Company Limited Sovereign House 33-45 Hurstmere Road, Takapuna, North Shore 1332 Private Bag Sovereign Auckland Mail Centre 1020 Telephone +64 9 487 9000 Facsimile +64 9 487 8003 Freephone 0800 768 867 Freefax 0800 768 401 workplacequote@sovereign.co.nz www.sovereign.co.nz Your Adviser G19-02/07 Copyright 2007