The most comprehensive research of its type into death and disability insurance cover in super funds has found insurance costs are inequitable, according to the Investment and Financial Services Association (IFSA).

And not only that, they have highlighted the fact that life insurance may become a big issue in comparing funds as the choice debate continues.

The research, conducted by Chant West Financial Services, found premiums can be up to 22 times greater in one fund compared to another, for the same level of cover. IFSA says the research also found some members may be entitled to more than $500,000 more life insurance coverage without medical evidence from one fund as compared to another.

CEO Richard Gilbert says some members of retail corporate funds in an employer plan with over 200 members are entitled to automatic cover worth up to $600,000 without having to undergo a medical examination.

“To date, life insurance is a consideration in the choice debate that has been largely overlooked,” he said. “It’s a real sleeper, and these factors may well play a critical role in people’s decision-making around choice of fund.”

The research shows for a 40-year-old white-collar worker, premiums vary between $55 and $367 for the same level of cover.

Mr Gilbert says it’s vital for super fund members to satisfy themselves they have enough life insurance to meet their debts and future income earning potential, and to make sure that they get competitive rates.