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How to Check a Life Insurance Adviser Is Legitimate
Written by Safety Nest
The short answer
In Australia, anyone who gives advice on life insurance must operate under an Australian Financial Services Licence (AFSL) or be an authorised representative of a licence holder, and you can check this yourself on the public registers kept by ASIC, the corporate regulator. A legitimate adviser will also give you a Financial Services Guide that names them, names their licensee, and explains how they are paid. If you found us through a social media ad and want to confirm we are real before you share any details, that is sensible, and the steps below are exactly how to do it for any adviser.
How do I know a life insurance adviser is legitimate and properly licensed, and not a scam?
Start with the licence. Advising on life insurance in Australia is a regulated activity, so the adviser must either hold an AFSL or be an authorised representative of one. You can verify this yourself on ASIC's public registers, including the Financial Advisers Register (published on ASIC's Moneysmart website at moneysmart.gov.au) and ASIC Connect, by searching the adviser's name, adviser number or the licence number. If someone is not listed, they cannot lawfully give you personal advice on life insurance. A genuine adviser will happily give you their name, their licensee and an AFSL number to check, and will provide a Financial Services Guide. As an example of what those details look like, Safety Nest Pty Ltd (ABN 62 679 381 545) is a Corporate Authorised Representative (No. 001311268) of Australian Mortgage & Financial Advisers Pty Ltd (AFSL 389206).
Verifying an adviser
How to check an adviser is legitimate
Advising on life insurance in Australia is regulated, so you can verify any adviser yourself.
- 1
Ask for their details
Get the business name, the adviser’s name and their AFSL or authorised representative number. A genuine adviser will give these without hesitation.
- 2
Check the ASIC registers
Look the adviser up on ASIC’s public registers, including the Financial Advisers Register on Moneysmart (moneysmart.gov.au) and ASIC Connect, by name, adviser number or licence number.
- 3
Match the website and contact details
Confirm the website and contact details match the licensed business so you know you are dealing with the real entity.
- 4
Read the Financial Services Guide
A legitimate adviser provides a Financial Services Guide that names them, names their licensee and explains how they are paid. Read it before handing over personal information.
- 5
Check the privacy practices
A reputable adviser handles your information under the Privacy Act. Ask what they collect, why, how it is stored and who it is shared with before providing sensitive details.
I found an adviser through a Facebook ad and don't know them. How can I verify them?
Finding an adviser through a Facebook or Instagram ad is completely normal, and it does not make them any less legitimate. The check is the same as for anyone else. Ask for the business name, the adviser's name and the AFSL or authorised representative number, then look them up on ASIC's registers. Confirm the website and contact details match the licensed business, and read the Financial Services Guide before you hand over personal information. A real adviser will give you these details without hesitation.
Common misconception: "an ad means it can't be a real, licensed business"
Many people assume a paid social ad is a warning sign on its own. It is not. Plenty of licensed, reputable life insurance brokerages advertise on Facebook and Instagram because that is where people are. What matters is not where you found the adviser, but whether the licence checks out on ASIC's register and whether the details are disclosed openly. Verify the credentials, not the channel.
How is a life insurance broker paid, and will it cost me extra on top of my premium?
Life insurance advisers in Australia are commonly paid by a commission from the insurer when a policy is put in place. These commissions are capped under the Life Insurance Framework, currently up to 60% of the first year's premium plus up to 20% each year ongoing, or up to 30% level each year, and a portion is clawed back if a policy lapses in its first two years. Some advisers may also charge a separate fee for advice. However they are paid, it must be disclosed to you, generally in the Financial Services Guide and in the advice document. In a commission-only arrangement the cost is built into the insurer's pricing rather than added as an extra charge on top, but you should always confirm the specific arrangement with your adviser so there are no surprises.
What does an "authority to enquire" let an adviser do, and can they change my policy?
An authority to enquire generally lets an adviser contact your insurer or super fund to request information about your existing cover, such as the type of policy, the sum insured and the premium. It is an information-gathering permission. On its own it does not let the adviser change, cancel or replace your cover. Any change to a policy needs your separate consent and usually a clear instruction or application from you. If you are ever unsure what a form allows, ask the adviser to explain it before you sign.
What happens to my personal data and privacy when I deal with an adviser?
A reputable adviser handles your personal information under the Privacy Act and should have a privacy policy explaining what they collect, why, and who they share it with. You can ask how your data is stored, how long it is kept and whether it is shared with insurers or third parties. You are entitled to that explanation before you provide sensitive details such as health or financial information. If an adviser cannot or will not explain their privacy practices, treat that as a reason to pause.
FAQs
Frequently asked questions
How do I know a life insurance adviser is legitimate and properly licensed, and not a scam?
In Australia, anyone advising on life insurance must hold an Australian Financial Services Licence (AFSL) or be an authorised representative of one. You can verify this on ASIC's public registers, such as the Financial Advisers Register and ASIC Connect, and a legitimate adviser will give you a Financial Services Guide naming their licensee and how they are paid.
I found an adviser through a Facebook ad and don't know them. How can I verify them?
Finding an adviser through a social media ad is normal and does not make them less legitimate. Ask for the business name, adviser name and AFSL or authorised representative number, look them up on ASIC's registers, and read the Financial Services Guide before sharing personal information.
How is a life insurance broker paid, and will it cost me extra on top of my premium?
Life insurance advisers are commonly paid by a commission from the insurer, which is capped under regulation, and some may also charge a fee. It must be disclosed to you, and in a commission-only arrangement the cost is built into the insurer's pricing rather than added on top, but always confirm the specific arrangement with your adviser.
What does an "authority to enquire" let an adviser do, and can they change my policy?
An authority to enquire generally lets an adviser request information about your existing policies from insurers or super funds. On its own it does not let them change, cancel or replace your cover, which needs your separate consent and instruction.
What happens to my personal data and privacy when I deal with an adviser?
A reputable adviser handles your information under the Privacy Act and should have a privacy policy explaining what they collect, why, and who they share it with. You can ask how your data is stored and shared before providing sensitive details.
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