Income protection insurance brokers

Why should I get 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, so getting the best income protection insurance available can give you peace of mind. Income protection insurance will cover you and your family 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 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 their only incentive is to find you the best plan at the best price. You can also find insurance brokers that work with one particular insurance company to get you a custom plan, but this will always be made disclosed to you.
• Offer professional advice if you’re not sure which features are best for your situation. They’re able to 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.

Insurance brokers work directly with insurance companies to get policies that aren’t usually available to the general public. These policies might have lower premiums, better coverage or specific benefits that you want but can’t otherwise get at a good price. In short, income protection insurance brokers are professional insurance policy finders.

What can 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 cost 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.

How much do income protection insurance brokers cost?

This depends on the type of insurance broker. They will always disclose their fees to you clearly and answer any questions you might have so you know how much it will cost.

Some insurance brokers will charge you a fee directly, often on an hourly basis. This will 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.

Other insurance brokers receive a commission from insurance companies for signing you up. If this is the case, they will disclose it to you ahead of time.

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.

In all cases, insurance brokers must explain their fees to you in clear terms. If you aren’t 100% certain on anything, always ask them.

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 the best policies will be tailored specifically for you. The broker will take everything into consideration to customise your policy to its fullest.

• Do you have dependants? 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 should consider using an insurance broker.

What sort of questions should I ask my 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:

• What are your qualifications? All brokers must hold an Australian Financial Services (AFS) license or be authorised representatives of license-holders. More highly qualified brokers will also have Qualified Practicing 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, find a broker who has a lot of experience with life insurance or income protection insurance in particular.
• 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 it will cost to use their services.
• Who is your typical client? It’s good to find an insurance broker who specialises in clients just like you. Some typically represent businesses, and other typically represent individuals.

• Do you have any references? Ask for references from previous clients.
• What services do you offer? They should be able to provide a complete list of what they can do in writing, so you can look at it carefully and decide how to get the most out of their services.

FAQs:

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

  Brokers handle about half of all insurance policies in Australia. It’s normal to 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 very rare, making up only 2.5% of reported insurance-related disputes. If this happens, you can report it to the Australia’s 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, absolutely. These changes mean the advice they previously gave might not be 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.

  If you want to be absolutely certain that you have an effective income protection insurance policy then it’s highly recommended. Overall they provide excellent value for money.

Compare income protection quotes from these direct brands

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Name	Product	Maximum Monthly Benefit	Maximum % of Income Covered	Maximum Benefit Period	Waiting Period Options
NobleOak Income Protection		$25,000	75%	2 years or to the age of 65	30 or 90 days	Get quote View details	Compare	loading Fetching your data...
AAMI Income Protection		$10,000	75%	5 years	14, 28, 60 or 90 days	Get quote View details	Compare	loading Fetching your data...
Insuranceline Rate Saver Income Protection		$10,000	85%	5 years	14, 28, 60 or 90 days	Get a $100 bonus gift after 2 months. Plus get 12 months cover for the price of 11 if you pay annually. T&Cs apply.	Get quote View details	Compare	loading Fetching your data...
Medibank Standard Income Protection		$7,500	75%	5 years	30 or 90 days	You could win a $2000 Gift card when you get an Income Protection Insurance quote by 30 August. Winner drawn fortnightly. Plus, Medibank health members save 10% every year. T&Cs apply.	Get quote View details	Compare	loading Fetching your data...
nib Income Protection		$10,000	85%	2 years	14 or 28 days	Get one month free when paying annually. T&Cs apply.	View details	Compare	loading Fetching your data...

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What's next?

• Make an enquiry to speak with an insurance broker
• Tips to take out affordable income cover in Australia