commission costs on investment fund ?

N

neil

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Any idea what sort of commission would be taken by a broker on increasing a premium on an investment policy ? I am looking to increase my premium on an investment policy I have and am being told that the first 6 months payments will not go to my fund...I can therefore only assume they will go in commission. Am I right and does this not seem very high given that there was commission paid when the policy was taken out initially ? thanks
 
Commission on a regular premium policy can often be either 25% or 50% of the first years premium. Renewal commission is usually 4%. Note that there are many combinations and variations of above but these levels are typical.
Any premium increases normally attract initial commission for the broker or agent. So you increase your premium from 1000 to 2000 you will pay renewal of 4 say of 1000 but you will pay 50% on the other 1000.
 
These costs sound very "old world" to me. Does anyone still pay this kind of commision? What kind of return is this fund giving you that justifies these sky high commissions?
 
You would be better off starting a new plan with a lower charging structure if the existing plan has these levels of commission payable


Bedlam
 
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