Group life insurance is arranged for members of a defined group under a master policy. A fund, employer or other policyholder may arrange it, while members have eligibility conditions and benefits under the relevant documents.
The distinction that matters
Group term cover is not necessarily portable when employment or membership changes. A group certificate or membership record should be read with the master-policy information provided to members.
What to check
- Who owns the master policy.
- Eligibility and automatic-acceptance conditions.
- Benefits, exclusions and evidence requirements.
- Cessation, conversion or continuation rights.
Example to discuss
If you leave an employer or change a super fund, obtain the end date of existing insurance and the acceptance conditions of any replacement before cancelling anything.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.