Income protection insurance brokers

Making an informed decision on what income protection policy is right for you can be confusing at times. This is where an income protection insurance broker comes in. They can break down the key features that come with policies, explain any exclusions and help you through the application process step-by-step.

What is an income protection broker?

An income protection broker is a qualified professional who can help you manage the end-to-end process of securing the right income protection for you. They can use their industry knowledge to help you find competitive deals, and help you avoid unsuitable products. Also, a broker can recommend to you other insurance products that further serve your needs.

What do income protection insurance brokers do?

Beyond simply getting good policies, insurance brokers can offer a number of other services. They can:

• Identify risks and help you reduce them. Brokers can help you find everything that your insurance policy needs to cover, and point out ways you can reduce your risks.
• File claims on your behalf and see them through, negotiating with insurance companies every step of the way.
• Warn you if you're being provided misleading information.
• Balance costs vs benefits. A common mistake is to simply get the cheapest policy, which is often inadequate. Insurance brokers will let you know if they think you're falling into this trap.
• Clearly explain everything in an insurance policy and make sure you're fully informed.
• Give advice on how to budget for insurance policies.

Life insurance brokers: Pros and cons

Why should I consider an income protection insurance broker?

Income protection will cover you and your dependents if you’re unable to work as a result of injury or illness. This is usually offered as part of life insurance, but is also available by itself.

It's an important investment because your lifestyle depends on your earning ability. Getting the best income protection insurance available can give you peace of mind. Income protection insurance can cover you and your family with payouts of up to 85% of your income if you’re unable to work, either temporarily or permanently.

Income protection insurance brokers will:

• Negotiate with insurance companies on your behalf to get better prices and better coverage than you could by yourself.
• Find a customised insurance plan, or negotiate with insurance companies directly to create a custom plan with everything you need and nothing you don’t.
• Check on smaller insurance companies that are hard to find and you might not know exist. Insurance brokers know them and consider these alongside the big income protection brands.
• Answer any questions you have in easy-to-understand ways so you know exactly what you’re getting.
• Stay impartial. As an independent outsider, in theory their main incentive is to find you the right plan at a competitive price. You can also find insurance brokers that work with a particular insurance company to get you a custom plan, but this must be disclosed to you.
• Offer professional advice if you’re not sure which features are best for your situation. They can take you through everything from start to finish.
• Help you make claims by letting you know what you need and liaising with the insurance company on your behalf.

Finally, insurance brokers work directly with insurance companies to get policies that aren’t always available to the general public. These policies may have some favourable terms.

How do fees and commissions work with income protection brokers?

This varies from broker to broker. Generally, fees will work in either of 2 ways:

1. The broker charges you a fee directly, often on an hourly basis. This can be a one-time payment, and after they find a policy for you there won’t be any more costs until you wish to use their services again.
2. If you have particularly unique or frequent insurance requirements, you can also retain a broker, or the services of an insurance broker company for ongoing service. This is usually paid for with an ongoing fee.

Insurance brokers may receive a commission from insurance companies for signing you up. Brokers must always disclose their fees to you clearly and answer any questions you might have about the cost. If you aren’t 100% certain on anything, always ask them to clarify.

How much will a broker cost me?

Broadly, fees may set you back between 10% and 25% of the base premium amount, according to Public Liability Insurance, an Australian-owned broker. It states on its website that "broker fees will always be separately listed on your insurance invoice, making the whole process very transparent".

It's likely a good idea to compare a range of quotes and pricing structures from a number of different brokers to get a sense of what using a broker will cost you.

Do I need an income protection insurance broker?

Insurance brokers are a great option for complex or difficult issues. Income protection insurance is very important, and policies can be tailored specifically for you. The broker will take everything into consideration to customise your policy.

• Do you have dependents? This is different from income protection, which covers you alone.
• Do you have mortgage requirements, student debt or other ongoing financial requirements? In the event of you being unable to work, there are different ways of handling them. A broker can help you choose the best path.
• Does your occupation have an unusually high risk of permanent injury or disability? Loss of income must be considered as a serious possibility.

You can always find income protection insurance without a broker, but if none of the policies seem perfect for your needs, you may want to consider an insurance broker.

6 key questions to ask an income protection broker

To get the most out your income protection insurance broker, you should ask them questions regarding anything you’re not entirely sure about, and find out their qualifications. You should never need to ask whether they’re independent or working on behalf of an insurance company as they must disclose this freely.

Good questions to ask include the following:

• What are your qualifications? All brokers must hold an Australian Financial Services (AFS) licence or be authorised representatives of licence-holders. More highly qualified brokers will also have Qualified Practising Insurance Broker (QPIB) or Certified Insurance Professional (CIP) certifications.
• What experience do you have with the type of insurance I’m looking for? Many insurance brokers are specialists. For the best income protection insurance for you, find a broker who has a lot of experience with life insurance or income protection insurance.
• How do you bill for your work? What are your fees? They will explain their fee structure and you should have a good idea of how much their services cost.
• Who is your typical client? It’s good to find an insurance broker who specialises in clients like you. Some typically represent businesses and others represent individuals.

• Do you have any references? Ask for references from previous clients and you could also seek out credible customer reviews online.
• What services do you offer? They should be able to provide a complete list of what they can do in writing, so you can decide how to get the most out of their services.

Get in touch with an income protection broker

Enter your details and one of our partner brokers will call you. They will discuss your quote, options and available products. Not available to those over 75 years old.

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Level of Protection UnsureNone$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,250,000$1,500,000$1,750,000$2,000,000

An adviser can help you find cover from trusted life insurance brands.

• Get competitive quotes from multiple brands
• Lower rate of declined claims (according to ASIC)
• Save time and effort

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Compare income protection quotes from direct brands

Name	Product	Maximum Monthly Benefit	Maximum % of Income Covered	Maximum Benefit Period	Minimum Entry Age	Sum Insured
TAL Accelerated Protection Income Protection Finder Award		$30,000	Up to 70%	Up to Age 65	18	$1,305 million	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quote View details	Compare	loading Fetching your data...
AAMI Income Protection		$10,000	Up to 75%	Up to 5 years	18	$222 million	Get quote View details	Compare	loading Fetching your data...
NobleOak Income Protection Finder Award		$30,000	Up to 70%	Up to Age 65	18	$65 million	Get one month free for a limited time - apply by 21 December 2023. With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $30,000.	Get quote View details	Compare	loading Fetching your data...
Medibank Income Protection		$12,500	Up to 70%	Up to 5 years	18	Data not available	If you’re a Medibank health member, you can enjoy a 10% discount on your premiums each year.	Get quote View details	Compare	loading Fetching your data...
ahm Income Protection		$10,000	Up to 70%	Up to 5 years	18	Data not available	Get quote View details	Compare	loading Fetching your data...
Insuranceline Income Protection		$10,000	Up to 75%	Up to 5 years	18	$222 million	Take out a new Insuranceline Income Protection policy and get a $100 eGift card after your first 4 months of cover. T&Cs apply. Ends 31 March 2024.	Get quote View details	Compare	loading Fetching your data...

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Income protection calculator: How much cover you could get

Gross annual income

$

Percentage covered

85% provided by Aspect Income Protection75% provided by Suncorp Income Protection75% provided by RACQ Income Protection75% provided by Qantas Income Protection75% provided by Insuranceline Income Protection75% provided by AAMI Income Protection70% provided by ahm Income Protection70% provided by Zurich Ezicover Income Protection70% provided by TAL Accelerated Protection Income Protection70% provided by RAC Disability Income Insurance70% provided by NobleOak Income Protection70% provided by Medibank Income Protection70% provided by HCF Income Protect Insurance70% provided by Commbank Income Protection by AIA Australia70% provided by Bendigo MaxLife Income Protect

We estimate that you could get...(click Calculate to see results)

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What's next?

• Learn more about how income protection works
• Tips to take out affordable income cover in Australia
• How to check if you have life insurance cover in your super fund

Why you can trust Finder's life insurance experts

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Questions you still might have about income protection brokers

• Is it common to hire an insurance broker or to handle it myself?

  Brokers handle about half of all insurance policies in Australia. It's normal to hire brokers for business insurance needs, but also common to hire them for personal insurance.

• What if I have a dispute with my insurance broker?

  Disputes with insurance brokers are rare, making up only 2.5% of overall insurance disputes. If this happens, you can report it to the Australian Financial Complaints Authority (AFCA). All licensed insurance brokers are required to be members of an authorised independent dispute resolution scheme so you will always have someone to turn to.

• Should I let my insurance broker know if my circumstances change?

  Yes, it's a good idea. Any changes may mean the advice they previously gave isn't valid anymore, and they can notify the insurance company of these changes.

• Do brokers always cost more or always save me money?

  Sometimes it will cost more, and sometimes it will cost less overall. It depends on how much they can save you in insurance premiums, and how highly you value their advice and other services. There will never be any hidden fees, so you can carefully consider whether or not to use them.