When you’re arranging life insurance, income protection, TPD or trauma cover, one of the most common questions people ask is:

“Should I use an insurance broker or a financial planner?”

The answer depends on what you need — and understanding the difference can help you make the right choice.

Let’s break it down clearly.

What Does an Insurance Broker Do?

A personal insurance broker specialises in insurance advice and placement.

For personal insurance, that usually includes:

• Life insurance
• Income protection
• Total & Permanent Disability (TPD)
• Trauma / Critical illness cover
• Insurance inside or outside super
• SMSF insurance structuring

A broker’s role is to:

• Assess your personal situation and risks
• Compare policies from multiple insurers
• Explain policy differences in plain English
• Structure cover properly (including ownership and super considerations)
• Assist with underwriting
• Advocate for you at claim time

A broker works with a panel of insurers and helps you choose a policy suited to your needs — not just one company’s product.

What Does a Financial Planner Do?

A financial planner (or financial adviser) provides broader financial advice, which may include:

• Investment strategy
• Superannuation planning
• Retirement planning
• Tax-effective wealth strategies
• Estate planning
• Personal insurance as part of an overall strategy

Insurance is often one component of a larger financial plan.

If you’re looking for comprehensive wealth planning — investments, retirement modelling, portfolio construction — a financial planner may be the right fit.

The Key Difference

Insurance Broker	Financial Planner
Focuses specifically on insurance	Focuses on broader financial strategy
Deep product knowledge across insurers	Insurance is one part of advice
Strong claims advocacy role	May outsource complex insurance structuring
Often more technical with policy wording	More strategic at wealth level

Neither is “better” — it depends on your situation.

When a Broker May Be More Suitable

You may benefit from using a broker if:

• You want detailed comparison between retail policies
• You’re unsure whether to hold cover inside or outside super
• You need income protection tailored to your occupation
• You’re a business owner or sole trader
• You want support at claim time
• You want someone focused purely on risk protection

Insurance policies vary significantly in definitions, exclusions, and claims handling. A broker’s role is to understand those technical differences.

When a Financial Planner May Be More Suitable

A financial planner may be appropriate if:

• You’re building long-term wealth and retirement strategies
• You want insurance integrated into a broader financial plan
• You need tax and investment structuring advice
• You’re reviewing super, investments, and protection together

In many cases, planners and brokers work alongside each other.

Can a Broker Find Better Insurance Than a Financial Planner?

It’s not about “better” — it’s about focus.

A broker who specialises in insurance may:

• Have deeper knowledge of policy definitions
• Spend more time comparing fine print
• Understand underwriting nuances
• Be highly experienced in claims advocacy

A financial planner may approach insurance from a broader strategic lens rather than a technical policy comparison lens.

The right choice depends on the complexity of your needs.

What About Cost?

For personal insurance, advisers (whether brokers or planners) are generally remunerated via:

• Commission paid by the insurer, and/or
• An agreed advice fee

This is disclosed clearly in a Statement of Advice or engagement document.

The key question isn’t just cost — it’s value:

• Are you getting tailored advice?
• Do you understand what you’re covered for?
• Will someone advocate for you if you claim?

The Most Important Question to Ask

Instead of asking:

“Should I use a broker or a planner?”

Ask:

• Do I need specialist insurance advice?
• Do I want broader financial planning?
• How complex is my situation?
• Who will support me if I need to claim?

Final Thoughts

Insurance is not just about price. It’s about:

• Definitions
• Structure
• Ownership
• Tax implications
• Claims support

If your priority is getting your insurance structured properly and understanding the fine detail, working with a specialist insurance broker can provide focused expertise.

If you’re building a long-term wealth strategy and want insurance as one component of that plan, a financial planner may be the right fit.

The right adviser is the one who understands your goals and explains your options clearly.