Is JIC Insurance Free? How JIC Is Paid

Yes. JIC Insurance does not charge customers a service fee to use its life insurance comparison tool, receive a product summary report, ask general questions or get support with an insurance application.

JIC Insurance is paid by commission from the insurer only when an application is approved, the customer accepts the cover and the policy is put in force. JIC receives an upfront commission equal to 60% of the first-year premium, excluding GST, followed by an annual renewal commission equal to 20% of the premium, excluding GST, while the policy remains in force.

If you only complete a comparison, receive a quote or decide not to proceed, JIC Insurance does not charge you a fee and does not receive an insurer commission for that quote. The same applies if an application is not approved or the policy is never put in force.

What is free through JIC Insurance?

The JIC Insurance process is designed to let customers begin with information, without paying an advice or comparison fee. You can complete the online comparison independently and decide afterwards whether you want a JIC Insurance representative to help with the next stage.

JIC Insurance does not charge a separate customer fee for:

• Using the online quote and comparison tool
• Viewing the available comparison results generated from the details entered
• Receiving the more detailed product summary report
• Asking a JIC Insurance representative general questions about the comparison or process
• Refining the quote with the insurer you choose
• Submitting an application with your authority
• General support through the tele-interview and underwriting process

A customer is not committed to applying simply because they complete a comparison. They can review the results, ask questions if they wish and decide whether they want to take the next step.

Are you curious about what happens after you receive a quote?

How is JIC Insurance paid?

JIC Insurance operates on a commission-funded model. The insurer pays the commission after a policy is successfully placed in force, rather than JIC charging the customer an advice or application fee.

For example, if the relevant first-year premium used to calculate commission were $2,000 excluding GST, a 60% upfront commission would be $1,200. If the same commissionable premium applied in a later year, a 20% renewal commission would be $400. This is an illustration only; actual premiums and commission amounts vary between policies and over time.

ASIC's life insurance commission framework sets a maximum of 60% of the premium in the first policy year and 20% in subsequent years for the relevant commission structure. ASIC also expects remuneration information to be disclosed clearly in a Financial Services Guide or equivalent website disclosure information.

Why JIC uses a commission-funded model

I believe a commission-funded model is a logical fit for a general advice life insurance business. It allows a customer to begin with the comparison, see the information and decide whether they want to proceed without first committing to a personal financial advice fee.

The important issue is not pretending that commission does not exist. It is designing the process so the remuneration is transparent, the comparison is visible and the customer remains in control of the product decision.

JIC is only paid if the process results in approved cover that the customer accepts and puts in force. The commission compensates JIC for providing the comparison process, preparing the report, supporting the application and helping coordinate the underwriting pathway.

How does JIC reduce the risk of commission influencing the comparison?

Commission can reasonably raise questions about conflicts. JIC's response is to make the comparison process open and customer-directed rather than asking a representative to privately shortlist products and choose one for the customer.

In practical terms:

• The customer enters the information that generates the comparison results.
• The available products compared are shown to the customer rather than only presenting a representative's preferred option.
• The customer can complete the comparison tool without speaking to a JIC Insurance representative.
• A representative can explain general features and the process, but the customer tells JIC which insurer they want to apply with.
• JIC Insurance does not provide a personalised recommendation that a particular insurer or policy is the best option for that customer.

This structure materially limits the scope for a representative to shape the outcome, but it does not remove the need for customers to understand the service. JIC Insurance compares a panel of leading Australian insurers; it does not compare every insurer or every product in the market, and product availability can change. If you would like to find our more about which life insurers can you compare through JIC Insurance, you can read this article.

A transparent comparison should make both points clear: how the provider is paid and what part of the market is being compared. you can find out more about how JIC Insurance compares life insurance options here.

Comparison, general advice and personal advice are not the same thing

The payment model is only one part of understanding the service. You should also know whether you are receiving product information, general advice or personal financial advice.

MoneySmart explains that general advice is not tailored to a person's circumstances, while personal advice is a recommendation or opinion that considers matters such as income, expenses, assets, liabilities, goals and risk tolerance.

JIC Insurance may suit someone who already knows the type and amount of cover they want to compare and is comfortable making the product choice from the information shown. It does not determine how much cover a person needs or recommend the policy that is best for their circumstances.

If the decision depends on a detailed assessment of family needs, debt, cash flow, superannuation, tax, business ownership, estate planning or broader financial goals, personal financial advice may be more appropriate.

If you believe that personal financial adviser will be more appropriate, you can use our JIC Wealth team to help you through your journey.

What should you check with any commission-funded comparison service?

A commission model is not something a customer needs to guess about. Before proceeding, it is reasonable to check:

• Panel scope: Which insurers and products are included, and whether the service compares the whole market.
• Results: Whether you can see the comparison results or only a short list chosen by the provider.
• Decision-maker: Whether you choose the product or the provider is making a personal recommendation.
• Remuneration: Who pays the provider, when they are paid and the commission rate or range.
• Advice boundary: Whether the service is providing information, general advice or personal advice.
• Disclosure documents: Whether you have access to the Financial Services Guide, relevant Product Disclosure Statement and other required documents.

Those questions help you assess the service on its actual structure instead of assuming that every comparison business, broker or adviser operates in the same way.

Is there any charge if you do not proceed?

No. If you complete the JIC Insurance comparison and decide not to apply, there is no JIC service fee. If you submit an application but the insurer does not approve it, or you decide not to accept the terms offered, JIC does not receive a commission because the policy was not put in force and JIC will not invoice you.

That means you can begin with the comparison, review the available information and decide whether you want to proceed. A quote is indicative only and does not mean the insurer has approved the application or that cover has started.

JIC Insurance can help Australians compare available Life Cover, TPD Insurance, Trauma Insurance and Income Protection Insurance options from a panel of leading insurers. There is no customer fee to use the comparison tool or receive general application support.

You can review the options first, decide which insurer you want to proceed with and ask for help with the application process if you need it. JIC Insurance is paid only if the insurer approves the application, you accept the cover and the policy is put in force.

Start here: Compare life insurance options through JIC Insurance

Is JIC Insurance free to use?

Yes. JIC Insurance does not charge a service fee to use its comparison tool, receive a product summary report, ask general questions or get application support.

How much commission does JIC Insurance receive?

JIC receives 60% of the first-year premium, excluding GST, when approved cover is put in force. It then receives 20% of the premium, excluding GST, in each later year while the policy remains in force.

Is JIC paid if I only complete a life insurance quote?

No. Completing a comparison or receiving a quote does not result in an insurer commission. JIC is paid only when an approved policy is accepted and put in force.

Can I compare life insurance without speaking to a JIC representative?

Yes. You can complete the JIC Insurance comparison tool independently. You can then decide whether you want a representative to answer general questions or help with an application.

Does JIC Insurance choose the insurer for me?

No. JIC Insurance displays the available products compared using the information entered and provides general advice and process support. The customer chooses which available insurer they want to apply with.

Does JIC Insurance compare every life insurer in Australia?

No. JIC Insurance compares a panel of leading Australian insurers, not every insurer or every product in the market. Availability can also change based on the product, customer inputs and insurer requirements.

What if I want a personal recommendation?

JIC Insurance does not provide personal financial advice. If you want a recommendation based on your income, debts, family needs, superannuation, tax position or broader goals, you may wish to speak with a JIC Wealth financial adviser.

Alex Jorgensen is the Founder of Jorgensen Investment Company (JIC), with over 10 years of experience in financial services. As the Responsible Manager he directly oversees compliance supervision and operations, focusing on creating simple, structured solutions that help clients make confident financial decisions. Alex is a registered provider on the official ASIC Financial Advisers Register. You can verify his independent client reviews on Adviser Ratings or connect with him via LinkedIn. Alex Jorgensen is a registered financial adviser for JIC Wealth AR # 001238139 under AFSL JIC Adviser Network AFSL # 562451.

General Advice Warning
This article contains general information only and does not take into account your personal objectives, financial situation or needs. This website provides general advice only and all information is general in nature. Before making a decision about any financial matters, you should consider whether the information is appropriate for your circumstances and read the relevant Product Disclosure Statement, Target Market Determination and Financial Services Guide. You may also wish to seek professional advice before deciding whether to apply for, change or cancel insurance cover.  

• ASIC - FAQs: FSGs and website disclosure information
• ASIC - Life insurance commission caps and clawback amounts

• MoneySmart - General and personal financial advice