Commission levels

With this exception, advisers are in the same boat as far as their earnings from selling life insurance are concerned. But what of the quality of advice they can offer?

Table 2N Some typical commission levels.

Whole life non-profit, managed 40, sum assured £1113,000, annual premium £1200

Initial commission: £11120 in first year, plus £160 in second

Renewal commission: £15

Term assurance over 10 years, managed 30, sum assured

£165,000, annual premium £11100

Initial commission: £160

Renewal commission: None

With-profit endowment over 15 years, managed 35, sum assured

£12,800, annual premium £1200

Initial commission £175

Renewal commission: £15

Property bond with purchase price £13,500

Initial commission: £11122.50

Immediate annuity with purchase price £19,500

Initial commission: £11200

Regular premium pension plan, managed 45, annual premium £1450 for 25 years

Initial commission: £11112.50 in first year, plus £11112.50 in second

Renewal commission: £16.75


Interested in Commission levels?

Planning Your Own Insurance

Questions To Be Asked

To get the best from life insurance you must have a good idea of what you want. The best way of deciding this is to ask yourself two simple questions:

1. How much protection do you need, against what eventualities and over what period?

2. How much do you want (and how much can you afford) to save, over what period and for what purpose?

The answers will determine the type of policy in which you should be interested.

Even assuming you have clear-cut answers to these questions (we shall follow through some examples later) there remains... see: Planning Your Own Insurance


Of interest