Which Is Cheaper: Buying Life Insurance Through a Broker or Direct?

When you’re looking for life insurance, one of the first questions you may ask is:“Is it cheaper to buy life insurance through a broker, or should I go direct to the insurer?”

At Covermate Life, a trusted general advice life insurance broker based in Sydney, we hear this all the time. The truth is: the price isn’t always what you expect, and there are hidden benefits of using a broker that go beyond cost.

Buying Life Insurance Direct

When you buy life insurance direct from an insurer (or through a TV/online ad), you’re dealing with one provider only.

Pros:

• Quick application, often online or over the phone.

• No middle person – straight to the insurer.

• May include simplified medical questions.

Cons:

• Limited to that insurer’s products — no comparisons.

• Often higher premiums for less cover, because simplified applications can carry higher risk loadings.

• Policy terms may be less flexible.

Buying Life Insurance Through a Broker

A life insurance broker works with multiple insurers to compare cover and premiums. At Covermate Life, we work with leading providers such as AIA, Zurich, TAL, ClearView, MLC, and OnePath.

Pros:

• Access to multiple insurers, not just one.

• Brokers can often negotiate more competitive premiums.

• More likely to find cover that matches your budget and needs.

• Ongoing support — brokers assist with policy reviews and claims.

Cons:

• Slightly longer process (as brokers compare more than one option).

• Brokers provide general advice only, meaning we explain product features but do not provide personal financial advice.

So, Which Is Cheaper?

In most cases, life insurance through a broker is the same price or cheaper than going direct. Insurers pay brokers a commission for bringing clients to them, but this doesn’t usually make premiums more expensive. In fact, brokers often help you avoid being underinsured or overpaying for cover you don’t need.

The key difference is that a broker gives you choice. By comparing policies side by side, you’re far less likely to pay too much for too little cover.

FAQs

Q: Do brokers charge me extra fees? A: At Covermate Life, we don’t charge you fees for taking out a policy. Insurers pay us a commission, which doesn’t increase your premium.

Q: Why would anyone buy direct then? A: Some people prefer the speed and simplicity of direct applications, even if it means paying more for less cover.

Q: Is cover through super the same as broker cover? A: Many super funds include default cover, but it’s often too low to meet most people’s needs. Brokers can compare outside options to top up your protection.

Q: Does using a broker mean better claims support? A: Yes. A broker can help guide you through the claims process and deal with the insurer on your behalf.

General Advice Disclaimer

Covermate Life provides general advice only. This means we explain policy features and compare options, but we don’t take into account your personal objectives, financial situation, or needs. Always read the Product Disclosure Statement (PDS) before making a decision.

Call to Action

Still wondering whether to go direct or through a broker? Speak to Covermate Life today — your trusted life insurance broker in Sydney and across Australia. We’ll compare policies, explain your options, and help you find value for money.