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Commission on Income Protection policies

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  • 24-10-2011 5:57pm
    #1
    JD Dublin
    Registered Users Posts: 398 ✭✭


    Does anyone know how much commission agents are paid from Income
    Protection policies written in the Irish market? I understand that some brokers refund 50% of the first year's fees.


Comments

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    #2
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    It depends on the company that you take the policy out with and what commission structure the broker decides to take.


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    #3
    JD Dublin
    Registered Users Posts: 398 ✭✭JD Dublin


    Thanks for that Pablo - the company is Friends First as far as I know.


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    #4
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Are they refunding you 50% of their commission or 50% of your first years premiums? The life company have no say in what special offer your broker offers and thats an agreement between the two of you.

    Commission can be quite large, especially for income protection, their first years commission may even be as high as 150- 200% of what you pay in premiums per year.

    Best thing is to simply ask your broker. They cant afford to be too generous as there is also a very high clawback of their commission if you cancel it in the first couple of years. Hence i reckon they will offer you 50% of your premiums and no more. Still a good deal, IP is a great policy and well worth worth having during your working life.


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    #5
    JD Dublin
    Registered Users Posts: 398 ✭✭JD Dublin


    I understand it is 50% of the first years premiums, from what you are saying the agents call the shots on how much the client is charged.


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    #6
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    No the rates you pay for your premium are fixed, they are based on age, health, smoker status and your occupation. The broker does have option as to how he/she receives their comission though.


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    #7
    JD Dublin
    Registered Users Posts: 398 ✭✭JD Dublin


    Okay Pablo - can you tell me what the level of commission is for brokers who write a policy for Friends First Income Protection. Assume the quote is for a self-employed male, 40, in an office-type occupation i.e. not driving, or working in construction or on a factory floor, non smoker, clean bill of health from the doc?


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    #8
    thomasm
    Registered Users Posts: 1,503 ✭✭✭thomasm


    The broker can select from various options with Friends First which depends on the amount of yearly renewal commision they decide to take. They can take a max of 180% of the first years premium


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    #9
    JD Dublin
    Registered Users Posts: 398 ✭✭JD Dublin


    Wow, thats good - for them. Thanks for the straight answer on the commissions thomasm.


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