Whole Life Insurance
Asked 2w ago
I was looking at different bene illustrations given to me for the same whole life plan (PruActive Life) by two different financial consultants: one is 9.2% of total premiums and the other is 6.4% of total premiums. Why is this the case? Am I paying more in terms of premiums for the 9.2% case for the same coverage? What's the diff if I buy from the 6.4% consultant?
You will need to examine the two plans closer in order to find out the differences between the two policies. For instance, are you benefits the same? This is because it is impossible for two plans that are exactly the same to have different distribution cost.
For this purpose, you may wish to check with your agent to find out exactly on this difference. Above all, you are not paying any additional premium for distribution cost. Instead, this has already been accounted for in the policy itself. You may find out more about distribution cost here: What is Distribution Cost in Insurance
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