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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
In an ideal world, claims never happen.
In reality, they do.
Currently, claims assistance is provided without additional fees.
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.
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.
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