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Life Insurance commission 'clawback'!

steveb_2 · 2011-10-14 19:35:28

I have a life policy which I want to cancel. It has only been running about 1 year, and the insurance company (Bright Grey) says I can simply cease paying the premiums. My IFA though has said that he will 'clawback' the commission which will have to be repaid. This amounts to £2800!!! I don't know how he proposes to…

Comments

ACG Posts: 24,789 Forumite

18 April 2012 at 7:56PM

The changes arnt coming into force for protection policies. Advisors can still be paid by commission on everything put investment backed products.

As for what we would charge, ive never thought about it, but i know not many clients would be interested in paying me a fee i would see as appropriate. So for the vast majority they would prefer to pay a little extra each month and not have to worry about upfront fees.

Less protection would be sold if people had to pay for it directly, which can only be a bad thing.

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