General Advice vs Personal Advice: What You Need to Know
General advice gives doctors factual information on how insurance works so they can compare options and decide for themselves; unlike personal advice, it doesn’t consider your circumstances or involve a Statement of Advice.
Doctors are used to researching evidence and making informed decisions. Many apply the same approach to their finances. Understanding the difference between general and personal advice helps you choose the approach that fits.
A simple way to picture it: the restaurant
General advice is like dining at a restaurant. The waiter walks you through the menu: what’s available, what each dish contains and how they differ. You then choose based on your own taste, budget and appetite. You see all the options, and the decision is yours.
Personal advice is like a private dining experience. You sit down, tell the chef about your preferences, and the chef designs the meal for you. It is tailored to you, but you rely on the chef’s choices rather than browsing everything on offer yourself.
Neither is “better”. It depends on how much you want to explore and decide yourself, and how much you want someone to build the plan for you.
What is general advice?
General advice explains how products work, what features to compare and what questions to ask, without taking your personal objectives, financial situation or needs into account. Articles, webinars, guides and health checks usually fall into this category. Providers must tell you it is general advice, so you can judge whether it suits your situation.
Why do many doctors use general advice?
You know your situation best. Your specialty, income pattern, existing cover, family commitments and risk tolerance are things only you fully understand.
Fuller information to work with. Good general advice lays out the options, definitions and trade-offs, rather than narrowing to a single recommendation.
You stay in control. You decide what cover to consider, when to review it and which provider to approach.
Typically lower cost. General advice doesn’t involve a Statement of Advice (SOA), so there is no SOA fee.
What does general advice not do?
It doesn’t assess whether a specific product is suitable for you, and it doesn’t come with the best-interests duty and SOA that apply to personal advice. That means the responsibility for checking the policy wording and Product Disclosure Statement sits with you.
How to use general advice well
Learn the key terms: disability definitions, waiting and benefit periods, and how benefits are calculated.
List your own priorities: income, debts, dependants and existing cover.
Compare features, not just premiums.
Read the PDS and Target Market Determination for any product you’re considering.
Review your cover regularly as your career and income change.
When might personal advice be worth considering?
If your situation is complex, such as multiple income sources, a practice ownership structure, health conditions that affect underwriting, or significant super and tax considerations, you may prefer personal advice. Some doctors use general advice to get informed first, then decide whether they need more.
Frequently Asked Questions
Is general advice enough to buy a policy?
Many people use it to research and prepare, then decide themselves. Whether it is enough depends on your circumstances and your comfort with the policy documents.
Why is there no SOA fee with general advice?
An SOA is only required when personal advice is provided to a retail client, so it doesn’t apply to general advice.
Is a Hippo Wealth article personal advice?
No. Our educational content is general information and does not consider your individual circumstances.
We Educate. You Decide.
Understanding your options is the first step. To see where you stand,
This article contains general information only and does not take into account your objectives, financial situation or needs. It is not personal advice. Before acting on any information, consider whether it is appropriate for you and read the relevant Product Disclosure Statement and Target Market Determination. Insurance rules and product features change, so check current terms.
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