Retail or group life insurance?

When it comes to obtaining life insurance coverage, individuals in Australia have two main options: purchasing retail life insurance or obtaining group life insurance through their superannuation fund.

At Spotter Life we specalise in comparing retail insurance policies from a number of providers. Group and retail cover have their own set of advantages and disadvantages, which we will explore below:

Retail life insurance:


More comprehensive coverage: Retail life insurance policies tend to offer a wider range of coverage options and higher benefit amounts than group life insurance through superannuation.
  • Greater control over coverage: With retail life insurance, individuals have greater control over their coverage options and can tailor their policy to meet their specific needs.
  • Portability: Retail life insurance is not tied to any particular superannuation fund, which means that it can be maintained even if an individual changes jobs or superannuation funds.


  • Higher premiums: Retail life insurance premiums are typically higher than group life insurance premiums, as retail policies are generally more comprehensive and offer higher benefit amounts.
  • Health requirements: Retail life insurance policies often require a medical examination or health questionnaire, which can be a barrier to obtaining coverage for individuals with pre-existing medical conditions.
  • Time-consuming application process: Applying for retail life insurance can be a time-consuming process, as it often involves completing a detailed application and undergoing medical examinations.

Group life insurance through super:


  • Automatic coverage: Group life insurance through superannuation is often automatically provided to members, which means that individuals do not need to apply for coverage.
  • No health requirements: Most superannuation funds offer default levels of cover that do not require a medical examination or health questionnaire.
  • Lower premiums: Group life insurance premiums are often lower than retail life insurance premiums, as funds purchase policies in bulk.


  • Limited coverage: The level of coverage provided by group life insurance policies is often limited and may not be sufficient to meet an individual’s needs.
  • Lack of control over coverage: With group life insurance through superannuation, individuals have less control over their coverage options and may not be able to tailor their policy to meet their specific needs.
  • Potential for coverage to lapse: If an individual changes superannuation funds, their insurance coverage may lapse, which could leave them without adequate protection.

In conclusion, both retail life insurance and group life insurance through superannuation have their own set of advantages and disadvantages. It is important for individuals to carefully consider their options and seek professional advice to determine which option is best suited to their individual circumstances and needs

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Important Information

Not all providers in the market are included in our comparisons. Also note, any information or advice given on our website is general. It hasn’t taken into account your objectives, financial situation or needs.