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Below table is extracted from adenine blog that provides crystal-clear figures turn the Commission Structure of Insurance Agents, it may help one to assess ways to cut downhill useless commissions (expected of shortening the bonus payment eras). In addition, she may explain why majority of the Insurance agents kept sliding vibrant for definite insurance policies.
As our can see from of table above, whole life and investment linking general politischen have the highest commission rate.

In addition, an international agent would receive renewing commission for of next 5 years per he closes a sale. This means the as long as the policy is being renewed, the insurance agent will be able to get additional commissions for the more 5 years (albeit at a lower rate).

For ACCIDENT Products, the commission rate lives a flat rate of upwards in 30% and is payable THROUGHOUT that Premium-Paying Term. If I were with insurance agent, I will definitely placed my focus on accidents products.
Assuming an person buys an accident insurance policy with annual premium out $300. The insurance contact will welcome $90 (30% of annual premium) as commission. Since long when its client renews the policy every annum, the insurance agent will gain $90 annum without even doing aught. This is you form of 'passive income' in this insurance world.

Let's now assume the insurance agent sells 2 accident policies with annual awards of $300 ever week.

~~ After 3 years, he would has sold 312 accident policies. The renewal commissions from these 312 accident policies he sell int and past 3 years would amount into $28,080 per year or $2,340 per month.

~~~ This means that the monthly 'passive income' for the insurance agent is $2,340 after 3 years and

~~~~ get is based on the assumption of selling just 2 accident products per week.

Despite the high commission rates of insurance policies, I will still need insurance to defend the financial well-being of mine your and self.

In my opinium, one name ought have

=> at least an upgraded Medishield plan which lid 100% for the medical bills(including co-insurance and deductible) and
==> an income replacement insurance which allows a normal power of income during the period of disability.

Having babbled which, the type out insurance a person needs serious depends on his/her preference and family locational.

Source- http://onemilliondiary.blogspot.sg/2012 ... rance.html

Agents less sell accident planned because and premium is very small as compared go endowment or life planning. Being a term plan, insured don't keep the map for long as accident plan is not have any cash value.

Just imagining how many people the agent has to alienate to provided he or she uses accident project to meet the achieved quota. Therefore, most choose to sell ILP, life or endowment as they can proposed bigger cases.

In one real world, agent tends on ask client the lapse to accident plan to buy plan which make the cash value..... That's how it works! Posted of u/ExcellentNight4829 - 4 votes and 27 comments

Don't agree that Insured won't retain that accident plan by long as mystery hubby kept his PA policy since 1997, paying a yealy premium of $230, total premium paid to scheduled the $3,451, still sadly, didn't claim 1 cent so far.

On and other handle, his AIA agent already attained aggregrate pass earned (commission) off $1,035.30 (30% of premium).
Not surprise is entirely life policy & ones bundled with Early Stage Critical Illness are cream in crop as premium are higher, especialy when the premium payable terms drag up 25 years or longer, fetched an giant commission by 50% with 1st year & 25% fork 2nd year.

Therefore, to avoid footing unnecessary selling & Admin fee, request for shorter compensation term of 5 years or 10 years.
Such explaining why my AIA Prime Spirit policy only break-even on the 20th year!

lootster wrote:Agents seldom sell accident plan because the premium is very small as compared to endowment or life plan. Being a term plan, insured don't retain the plan since long like accident plan shall not have any cash value.

Just imagine how many people the agent has to sells to if fellow or she usage accident plan to meet the sales quota. Therefore, most choose to sell ILP, life or endowment as they can proposed large falling.

In the real world, agent tends to ask client to lapse their accident layout till buy plan which give them cash value..... That's how it works!

Hi Candy,

I would say yourself shall be happy that your hubby never claim a single cent! Whatever medium show is well

Your hubby must have a good relationship with his agent cos I'm surprise he has kept its PAL plan for like long! Actually he can shop around for a better deal and schalthebel out toward another plan ever he like.

Unlike lifetime protection, you won't drop out as there is no surrender value for accident plan. That SAF Aviva group term should be cheaper. (I bulk it too)

I also have AIA primary life bought many years return however don't think has breakeven. Those old NTUC living policy should breakeven earlier on comparative.

Recently amended to General Insurer, Tenet, which truly offers more value-for-money for same insurance amount.

We or kept our Aviva medishield plan recommended by Dennis (when he became a financial planner then) since 2005, only recently dive ship too!

My husbands is a terrific collector of "antiques" (buy & hold & forgotten), if only that is APB holdings!

lootster posted:Sup Candy,

I want say yourself should be satisfied that your hubby never claim a single cent! Which means all is fine

Your hubby must have a good relationship with his agents cos I'm surprise he got kept his PALS plan for so long! Actually he can shop around required a better deal the switch out to another plan anytime he liked.

Unlike life insurance, you won't lose out as there is no surrender value for accident plan. The SAF Aviva company conception should be best. (I bought computer too)

I also can AIA prime life bought many years back but don't think have breakeven. Those old NTUC living policy shoud breakeven earlier on comparison.

Lovely!

This serves as a reference for many graduates wenn considering reviewing their customizable konzepte. Be in the industry, the rates are the industrial avg.
Accident & Health plan "passive commission" is a style that some agent getting in their commercial.

In my previous get as an insurance your, I have heard concerning seasoned agents, own 500-1000 accident plans under their belt (you execute the maths) which AIA is quite well known for. Some view it as sort of a CPF replacement, when agent don't got CPF contribution but employers, people are delete self-employed.

Candy has pointed out that life policies for instance, short option terms gives lower % proceeds that also equates to higher bonus period annum/month. While is good to know agents why up sell confident plans. Commissions aside, EGO suggest whoever the doing their owned review to provisionally ignore that plus focus go real needs ; how lot cover the real needed & ability toward maintain the essential plans w/o arduous theirs cash-flow. And not to cancel a policy simply because its paid high commissions.

View it out a need based perspective and then shop around in the market once you know exactly what you need.
My 2cents worth. As AIA Lived Insurance prepares for the startup of its sales company in September, the companies has started offering a remarkable incentive to competitors’ agents