Term Insurance wo Commission

[blurpandasg2014]

Any news when will direct buying of term plans be implemented?

 

[w1rbelw1nd]

In April this year!
http://m.todayonline.com/business/commission-free-insurance-policies-available-april

 

[Tornesoul]

advisable to wait until then? how much comms are being paid on term insurances anyway

 

[savesmart]

Very simple. If you think that you
1) Know exactly what and how much coverage you need/want
2) Are able to do your own research/comparison to find which policy suits you best
3) Don't need advice, explanation or anyone to service your policy during its term

then for sure yes, you should wait. You'll save on the commission charges.

If not, you still might want to go ahead and buy through a FA. It's better to pay a little more and buy something you really need/want than to pay less but purchase a policy that you don't really understand or doesn't suit your needs.

advisable to wait until then? how much comms are being paid on term insurances anyway

 

[Tornesoul]

Very simple. If you think that you
1) Know exactly what and how much coverage you need/want
2) Are able to do your own research/comparison to find which policy suits you best
3) Don't need advice, explanation or anyone to service your policy during its term

then for sure yes, you should wait. You'll save on the commission charges.

If not, you still might want to go ahead and buy through a FA. It's better to pay a little more and buy something you really need/want than to pay less but purchase a policy that you don't really understand or doesn't suit your needs.

how is the commission structured though? e.g. I buy a term insurance for 30 years.

if i bought from an FA, the commission would be paid from my monthly premiums for 30 years?

isn't that a very significant amount?

 

[savesmart]

The commission structure varies based on factors such as type of policy (eg. term, whole life, ILP) and number of years premiums are payable for.

As for your second question, no. Commission is only paid out for the first few years of your policy term. A higher percentage is usually paid out in the first year before decreasing for recurring premiums. For example, you may refer to the table that can be found in this link (note that this might not be accurate but it does give you a general idea):

http://onemilliondiary.blogspot.sg/2012/10/commission-structure-of-insurance.html

Some people don't mind paying that bit more to enjoy the service provided by FAs. While for others, they don't think it's necessary and would rather save that sum of money for better use. Up to an individual's preference I would say.

how is the commission structured though? e.g. I buy a term insurance for 30 years.

if i bought from an FA, the commission would be paid from my monthly premiums for 30 years?

isn't that a very significant amount?

 

[Flex11]

Thats good to know.

I have been waiting for the introduction of DIY insurance since last year.