Should you buy life insurance through a broker or direct?

Published on November 24th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Buying from a broker

Brokers are generally the ‘go to’ for people who want insight on the different life insurance policies that are available and would like to understand the relevant insurance terms that will affect their policy.


  • Take you through a full step by step application process.
  • It is done over the phone and can take 15 minutes to an hour to complete.
  • You get to choose the amount best suited to your needs with a premium that is affordable to you.
  • Give you better access to an extensive range of insurer products by shopping around for you to get the best rate on your policy.
  • Detailed underwriting process that ensures that you take out a policy that will adequately cover you.


Life insurance brokers vary in terms of their service and some could represent a single company whose main objective is to make sales of the products that they offer. Chose a broker that has the experience and access to a wide range of lenders to get the best deal for you.

Buying direct

If you are someone who already knows what they want from a life insurance product, then buying your life insurance directly can be an option for you. Applying through this process can be quicker as the application process can be completed over the phone, online or directly. Some of the other benefits are:

  • Minimum medical information is required from you during the application process.
  • Allows you to get a policy from an insurance company that you know.
  • A convenient application process that can be beneficial for people who do not have an extensive medical history.


The limitation of applying directly for life insurance is that you may have to review and compare them yourself. You could be forking out more on premiums because of the limited underwriting that comes with this option. Other limitations are:

  • Can limit the maximum cover amount you can purchase.
  • You may have to manage the claim process on your own or through family members.
  • You may not receive any financial advice or guidance when it comes to getting a policy that will adequately cover you.
  • Claiming could cost you more if you skip reading the fine print.
  • There are other options such as getting your life insurance as a group through a superannuation fund, but this has its limitations too. Although it may be an affordable option for many Australians, it can limit you in terms of what it can and cannot cover you for. Always remember to compare your options.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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.

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