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.

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Extent of comparisons

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.

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Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision.

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.The products compared on this website do not necessarily compare all features that may be relevant to you. Comparisons are made on the basis of price only and different products may have different features and different levels of coverage.

Spotter Life and its advisers operate as authorised representatives of Crown Wealth Group Pty Ltd ABN 22 603 037 510 Australian Financial Services Licensee 494274. Spotter Life and its advisers are authorised to advise and deal in superannuation and life insurance products only. .

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We (including your adviser) may be remunerated in the following various ways for the financial services provided to you.


We will receive commission on any life insurance products your adviser arranges for you. This commission is built in to the cost of the insurance. The rate of commission varies between the different product providers but can be up to 140% of the initial premium and up to 40% of renewal premiums. Based on the 140% and 40% we would receive up to $1,400 upfront commission on an annual premium of $1,000 and up to $400 of each renewal premium.

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Sometimes product providers will pay us bonuses based on the business placed with that insurer. The criteria for such bonuses are typically the volume of business placed and the level of retention of that business over time.

In the event that we receive a performance bonus it will be shared with your adviser. From that part of the bonus generated as a result of business written by your adviser, the adviser may receive up to 100% of that bonus (37.5% if you have been referred by an affiliate, with the affiliate receiving 12.5%).

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