Life Insurance Broker

Find out more about life insurance brokers and their role in the policy purchase process with Savvy.

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, updated on July 10th, 2023       

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Life Insurance Banner - Family meeting with a life insurance broker

Buying life insurance through a broker can be a quick, easy and fuss-free way to organise cover for you and your loved ones. Find out the ins and outs of how brokers work, what they charge and some of the advantages and disadvantages of enlisting their help right here with Savvy today.

What is a life insurance broker?

A life insurance broker acts as a go-between who helps match you to your best-suited policy among their panel of partnered insurers. Brokers have a deep understanding of products and often know the broader insurance market like the back of their hands. This allows them to consider what you’re looking for in a policy and potentially find you a suitable deal that comes within your budget.

Traditionally, brokers would be introduced in person and you’d be required to arrange face-to-face appointments, print off reams of paperwork and potentially have to travel to utilise their services. This could be tricky if you live outside of capital cities. However, these days, much of this can be done online and over the phone without the messy paperwork or office visits.

We can help you get online quotes and real-time price estimates from a panel of some of Australia’s most trusted insurers through our online broker partner. This means you can compare life insurance policies, get your quotes and buy your policy all in one place, saving you time that may otherwise be spent making appointments to meet a broker in person.

How does an online life insurance broker work?

An online life insurance broker may help determine your policy requirements and the sort of plan which suits you from their panel of insurers. When you go through Savvy, all you need to do is provide some general information about yourself, your profile and the amount of coverage you’re after and you can get a range of automatically generated quotes based on your responses. Once you’ve earmarked a policy that seems suitable, you can schedule a call back with a life insurance expert who can talk you through the specifics of your policy.

They can help to answer any questions you may have about your policy and run through certain features of your coverage, such as:

  • What’s included and what isn’t: inclusions and exclusions can differ from provider to provider.  They may be able to assist you in determining which policy will provide you with more appropriate benefits for your needs at the most competitive price among their partnered insurers with your profile in mind.
  • Pre-existing medical conditions: you’ll be able to see whether there are any policies which may cover your pre-existing conditions, such as a heart condition or type 1 or type 2 diabetes. You can speak to them about whether you may be able to get coverage with loadings, exclusions or if you may be eligible for coverage at all.
  • Cost: the monthly premium is one of the big factors when it comes to life insurance. Your life insurance expert can discuss different policy options with you to help you make an informed choice about which policy offers the best value among their panel.

Not only can a life insurance broker help you make an informed choice, but they can also help you navigate the process of completing an online application form. One of the benefits of comparing through Savvy online is that once you’ve settled on your policy, your life insurance expert can assist to complete any necessary paperwork. This can fast-track the time it takes to process and get covered.

This all comes free of charge, as neither we nor our broker partners will make you pay a fee for the service. However, some brokers on the market may require you to pay a fee for enlisting their help. In most cases, brokers receive commissions from their partnered insurers for selling their products.

What are the alternatives to buying life insurance through a broker?

You could do your own research and buy life insurance directly from an insurance company or bank. However, to get the most out of your life insurance policy, it’s important to compare a wide range of insurers and read their fine print closely, so doing so through Savvy can help you cut down on what might otherwise be a time-consuming task. 

Superannuation funds often offer automatic or optional life insurance policies, depending on your age and account balance. While this can be a convenient way of getting insurance, these policies may not provide you with as much coverage as you might need, with lower payout limits typically available compared to policies purchased through a specialist insurer, so it’s important to consider your options carefully.

Pros and cons of buying life insurance through a broker

PROS

Expert advice

You can save a lot of time and effort when shopping for life insurance online, as brokers have access to extensive information on rates and benefits and understand policy jargon.

Saves you the run-around

Working with a broker to get the best life insurance policy for your needs from their panel may save you time and energy. If you work with a broker, they can do the legwork to try and locate a suitable policy and can assist you in completing your forms.

100% online

When you choose to purchase your life insurance policy through Savvy, it's easy to buy through our online partner from the comfort of your home and compare your options all in one place.

CONS

It could cost you

Some brokers may charge for their service. If your broker is charging you, it's a good idea to ask for a detailed breakdown of the expenses (though this isn't the case when you buy through Savvy, as our services and those of our broker partner don’t cost you anything).

Limited options

Brokers generally represent a range of life insurance companies, not every insurer in the market,  and earn a commission when selling their policies. This means they won’t have as many options available to present to you as you would if you compared insurers independently, though it may make it easier to do so.

May be time-consuming

Time spent visiting and talking to a traditional life insurance broker could possibly cost you more time than what you'd spend researching life insurance options yourself.

Frequently asked questions about life insurance brokers

What details do I need to provide my life insurance broker?

If you’re wondering what you need to take out life insurance with a broker, the good news is you won’t need much. A broker will usually request a few details from you, including:

  • Your name, gender and age
  • How much coverage you need
  • Whether you’re a smoker
  • Your occupation
  • Where you live (for example, your premium may be higher if you live in Perth rather than Melbourne or Sydney)
  • Whether you have any pre-existing medical conditions
Do I have to pay my broker if I decide not to buy?

No – when you get a life insurance quote through Savvy, there’s no obligation for you to purchase a policy or pay a fee if you decide not to buy at that time. This is also typically the case with traditional brokers who may otherwise charge a fee.

Can I go through a life insurance broker if I am a senior?

Yes – you can go through a broker if you’re chasing a life insurance product and you’re over 60 or 65. It can pay to work with a broker if you’re a senior, as they’ll have a greater understanding of which insurers among their panel may suit your profile.

Can a broker help me when making a claim?

In most cases, your online broker won’t be at hand to help you complete a claim form, as this is handled by the insurer. They can, however, provide you with some tips when you purchase your policy about how to speed up the processing of your claim. Some traditional brokers may be able to assist you in making a claim, though this won’t always be the case.

What age limits apply to life insurance?

Life insurance policies come with different types of age restrictions (all of which are at your insurer’s discretion and may vary depending on your health and other factors), such as:

  • Life insurance: the age limit for buying your first life insurance policy can be up to 75, depending on who you purchase with. After you’ve bought, you can be covered up to and beyond the age of 100 in some cases.
  • Income protection insurance: you can generally buy this policy up to the age of 60 and be covered until you're 65.
  • Trauma insurance: you may get one of these insurance policies if you’re under 65 years old. You may be able to maintain your cover until you turn 70.
  • TPD insurance: depending on the provider, you may be able to buy an insurance policy up to the age of 75 and maintain it up to the maximum age of 100 in some cases.

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Compare life insurance policies side-by-side

Through Savvy, you can consider a range of competitive life insurance policies from reputable insurers, whether you're after life, income protection, trauma or TPD cover. Get the ball rolling on comparing your available options today!

Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.