facebookDo Insurance Agents actually disclose their commissions to their clients? - Seedly

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08 Jun 2021

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Do Insurance Agents actually disclose their commissions to their clients?

" Insurance agents have to disclose to prospective clients the commissions they will earn from any policy sales."
"The MAS' Regulation 306 of 1996 spelt out in detail the limits on agent commissions as well as agency costs."

Agents commissions for the first year must not exceed
50% for whole life plans and 30% for endowment plans.

  1. Touch your heart, how many agents actually disclose their commissions to you?
  2. Are there any similar regulation on term, health and other insurance plans?

Discussion (17)

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Cedric Jamie Soh

20 Apr 2020

Director at Seniorcare.com.sg

If you don't ask, they don't tell.

Even if you ask (or don't ask), their commission is lumped together with their managers' overriding (another type of manager commission), bonus, incentives etc in "COSTS OF DISTRIBUTION".

Usually this COST OF DISTRIBUTION is 120% to 150% of your first year premium.

Your agent doesn't earn that much though, probably 40-50% of your saving / life plans etc.

View 1 replies

Sharon

09 Apr 2020

Life Alchemist at School of Hard Knocks

Based on my experience, they won't tell you until you ask. Somehow it's a touchy topic for them. Maybe after you know how much they earn from the policy, they worry you won't buy or change mind after 14-days look-see period.

I have met many agents.

So far, only one has, on the spot, without a single shred of hesitation, tell me his commission.

I'm sure all products have such regulations. Otherwise, why need a licenced personnel to sell such product?

I bought my policies from NTUC, when signing document, it explicitly indicates the amount to be distributed for such purposes.

View 1 replies

Han Jinyuan Larry

06 Apr 2020

SwimSafer 2.0 Instructor & Assessor at SWIMWITHUS

I got ask before:

how much monthly premium is to your commission?

For how long?

Replied was confi...

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