Why we charge a fee for insurance advice in Australia
There is a simple question that sits underneath almost every first conversation:
Why do you charge a fee?
It is a fair question.
Insurance advice can look deceptively simple from the outside. Fill in a few details. Compare premiums. Choose the cheapest one. Done.
But regulated financial advice is not quoting. And quoting is not advice.
This article explains what the advice fee covers, how commissions work, when additional fees apply, and why structured advice often produces very different outcomes from going direct.
The 15-minute intro call: $0
Before any fee is charged, there is a short introductory call.
It has three purposes:
Understand your situation
Explain our process
Explain our fees
This call is not personal financial advice. It is an initial conversation to determine whether we are the right fit for what you are seeking.
The goal of the call is clarity.
If someone is looking for health insurance or car insurance, that is not what we specialise in. If someone is seeking a full investment or superannuation strategy, that may require a different scope of advice and we may be able to point you in the direction of someone who can help.
It is about setting expectations early so there are no surprises later.
The advice fee and what it covers
Current advice fees:
$330 for an individual
$495 for a couple
Self-employed or reside overseas: $495 individual / $770 couple
These fees cover the preparation of a regulated Statement of Advice.
“What you’re paying for when you pay that fee is financial advice.”
A Statement of Advice is a legal document required under the Corporations Act when providing personal financial advice. It must demonstrate:
The advice is appropriate
The advice is in the client’s best interests
The reasoning behind recommendations
Comparisons considered
Conflicts disclosed
This is not optional documentation. It is regulatory.
For context, full financial planning advice in Australia often ranges between $3,000 and $5,000+ depending on scope. Insurance-only advice is narrower in focus, but still regulated, structured and compliance-driven.
Where the real work sits
There are three core analysis areas where most of the value sits.
1. Health and underwriting expectations
Every insurer has a different underwriting appetite.
Family history, mental health history, BMI, occupation, blood pressure, diabetes and musculoskeletal history can all materially change outcomes.
“Every insurer has a different appetite for risk when it comes to pre-existing medical conditions.”
The advice process may involve pre-assessments to anticipate likely loadings or exclusions before submitting an application.
Without this step, clients often apply to the cheapest insurer and only discover exclusions after underwriting.
That is avoidable with proper preparation.
2. Type and amount of cover
There are five main cover types:
Life cover
Total and Permanent Disability
Income protection
Trauma insurance
Child cover
The right mix depends on:
Debt levels
Dependants
Income
Business ownership
Super structure
Retirement timeline
Underinsurance and overinsurance both carry consequences. Advice modelling aims to balance protection with sustainability.
3. Cost and structure
Premium structure matters.
Advice considers:
Funding through super vs personally
Tax deductibility (for income protection)
Long-term premium sustainability
Cashflow impact
Waiting periods and benefit periods
These structural decisions can materially affect affordability and long-term policy survival.
The advice meeting
Once the document is prepared, there is a one-hour advice meeting.
The document is not sent in advance. Without context, it is dense and technical.
The meeting explains:
Recommendations
Alternatives
Trade-offs
Consequences
This ensures informed consent rather than blind agreement.
A follow-up call one week later is included to answer further questions or refine quotes.
If you decide not to proceed, there are no additional fees.
You paid for advice. You received advice.
We don’t charge an application fee
If you proceed, there is no second advice fee.
Instead, advisers are paid commission by the insurer.
This commission covers:
Application preparation
Tele-interviews
Underwriting follow-ups
Medical report coordination
Explaining offers and conditions
Final implementation
There is no separate line item on your premium that goes to the adviser.
In Australia, insurance commissions are legislated and capped.
The current maximum is:
66% upfront
22% ongoing
These caps were introduced to reduce conflicts and ensure advisers cannot favour one insurer over another based on commission.
Even if you go direct to an insurer, premiums are not cheaper. The insurer retains that margin internally.
The commitment fee
In certain circumstances, a commitment fee may apply.
This fee is outlined clearly in our Terms of Engagement and is agreed before proceeding to application stage.
The purpose of the commitment fee is to cover the substantial underwriting and application work completed where a policy does not ultimately proceed or is cancelled early.
It may apply in situations such as:
An application is withdrawn after submission
A client chooses not to proceed after underwriting has been completed
Required information is not provided and the application lapses
A policy is cancelled within the insurer’s two-year responsibility period and commission is clawed back
The fee amount is disclosed upfront prior to signing the Authority to Proceed.
If you proceed with cover and maintain the policy beyond the insurer’s responsibility period, no commitment fee applies.
Full details are available in our Terms of Engagement and will always be provided before any commitment is made.
After the policy is live
Our involvement does not end once the policy starts.
There is a post-implementation call to:
Confirm policy details
Review exclusions
Discuss beneficiary nominations
Clarify review timelines
Ongoing commission covers:
Payment detail updates
Minor cover adjustments
Administrative changes
If major restructuring is required, a new advice process may apply.
Claims support
In an ideal world, claims never happen.
In reality, they do.
Currently, claims assistance is provided without additional fees.
“We’ve yet to charge a client for helping them through a claim.”
For complex, long-term claims in the future, structured support models may evolve. But the objective remains consistent: helping clients navigate policy wording they were never expected to memorise.
What you are really paying for
You are paying for:
Research across insurers
Underwriting anticipation
Structured modelling
Regulatory documentation
Compliance accountability
Education
Ongoing support
You are not paying for a quote.
You are paying for clarity before risk becomes real.
“Good advice is worth paying for.”
Resources
Australian Securities and Investments Commission (ASIC) – Financial advice and best interests duty https://asic.gov.au
Corporations Act 2001 (Cth) – Personal financial advice obligations
Australian Prudential Regulation Authority (APRA) – Life insurance industry statistics and prudential standards
ASIC MoneySmart – Life insurance and advice explanations https://moneysmart.gov.au
Australian Financial Complaints Authority (AFCA) – Insurance dispute resolution framework
Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019
ASIC Regulatory Guide 175 – Licensing: Financial product advisers