Whole Life Insurance Commission: Independent FA or Specific Company FA?

Hi there,

In a general sense, no. The commission structure is quite fixed and decided when the product is launched.

Just sharing from my experience, as i came from a partly independent FA, (representing a few insurers). I find most of my time comparing products instead of focusing on the needs of my clients.

Thus I decided to join a tied agency (Insurance company specific), whom is able to provide almost every type of insurance a person needs. And I can focus on structring the prodcuts to meet each client's profile.

Yes, one company may not be the best in all areas.. but at least one company can cover all the needs of my clients. It is also easier from the FA perspective to deal with one insurer than multiple ones..​​​

Hi anon,

The quotation engine is the same regardless of whether you purchase the plan from a IFA or a tied agent. Thus the premiums are the same. And hence, the distribution costs (of which commissions are a part of) are also the same. Distribution costs include a variety of other factors, such as backend staff costs, etc)

As commissions are part of the distribution costs and are already priced into the product, you don't pay an 'additional' commission of any form.

Thus, work with an agent that you are comfortable with. If he/she happens to be from an IFA, that will be a plus, as you will have access to products from multiple insurers.