Local life insurance advice practice

Insurers pay commission on policies you place. Clients are local families, couples and small business owners, and many come through referrals from mortgage brokers, accountants and financial planners.

Upfront and ongoing commission on policies, which can grow as the client book and team grow. Commission can be clawed back if policies lapse early, so retention matters.

• Client advice and relationship building
• Managing a small team and compliance processes
• Networking with referral partners
• Budgeting for slow early months

• AFSL or authorised representative requirements and ongoing compliance costs, so check with ASIC
• Adviser education, registration and training requirements for you and any advisers you hire
• Limits on commission and clawback rules, so confirm what applies to your policies
• Lease commitments before you have steady income, so consider a short or flexible term first
• Workers compensation insurance once you hire staff, which varies by state
• Privacy, record keeping and complaints-handling obligations

Estimates suggest startup costs typically around $15,000 to $50,000, depending on premises, fit-out, staffing and licensing arrangements. Monthly revenue is estimated at around $5,000 to $25,000, but early months can be slow, so budget for a quiet start.

Check with ASIC about AFSL or authorised representative requirements and ongoing compliance costs. Also check adviser education, registration and training requirements for you and any advisers you hire, plus privacy, record keeping and complaints-handling obligations.

Estimates suggest monthly revenue typically around $5,000 to $25,000, depending on how many policies you place and how strong your referral partners are. Confirm the commission limits and clawback rules that apply to your policies. The estimate assumes at least 35 hours a week.