All insurance agents, both captive brokers (those working for one company) and independent brokers (those working for multiple companies) are generally paid commission when an insurance policy is made valid. If you decide to cooperate with an insurance adviser, there are two main advantages for you: you can get the best premium on the market, and the adviser will help you to choose the best type and amount of coverage for your situation. It's important to note that the agent/broker is commissioned by the insurance company. Some misunderstanding has been brought about by the media and customer skepticism. The important points regarding the payment process that are most commonly misunderstood will be described in the following paragraph.

"If it weren't for the commissions, the life insurance policies would be more affordable." Life insurance policies may be sold either via salaried employees or self-employed brokers, but regardless of this, there are always some distribution costs. The insurance company includes the cost of distribution inside the price of their policies. It usually doesn't make any difference how the consumer buys the product. Some companies, for example RBC Insurance or Manulife, charge the same prices for the same life insurance sold via different distribution models. The Manulife call center, website or an independent advisor will always sell you their $200,000 Term 10 policy for the same rate. "It is possible to negotiate the life insurance commissions." Life insurance commissions are not negotiable. The situation is different from when you are buying a car or a house. Only to repeat what we have said before, the commissions are included in the insurance distribution costs and it's not possible to change them.

"Whole Life or Universal Life policies pay higher commissions than Term Life policies." The life insurance commissions are based largely on the policy price. So the adviser gets more money for a more expensive policy. The initial price of Whole and Universal policies is higher than for Term policies, but these are purchased just once. If a person decides to purchase a Term policy, there are usually more of them needed during his/her lifetime. Their price grows as the insured gets older. Each time a new policy is bought, a commission is paid, but more importantly to the consumer, every time a policy is purchased the applicant is older, so they're paying a higher price. If his/her health has changed, the premiums will be noticeably higher and/or the coverage will not be available. For the insured people it is really important that they understand the difference between all the life insurance types and that they can decide which one is the best for them. "The commissions paid by some insurance companies is better than from others." The truth is that the differences between commission rates from various providers are only slight. But anyway, this shouldn't influence the consumer's decision, as insurance commissions are a fixed cost within the policy. It is in any case very important that your agent has access to products from multiple companies, as some of them, while independent, work only with two or three. We can make sure that you get the best possible price on the market, as our brokers cooperate with 15 various life insurance carriers.