The total additional commission paid to the intermediary by adding on such a whole of life policy to a clients plan is an additional €732.05.
But unlike the consumer who would suffer from the ever increasing eroding effects of inflation on the sum payable on death the intermediary would pocket €444.75 immediately with the balance paid over the next 29 years.
If you consult page 11 of 'The facts' technical guide for financial advisers relating to this whole of life add on you'll see a similar example to the one in the blog [broken link removed] except the whole of life policy is intended to be sold as a 'funeral expenses' only policywith a sum assured of €10,000 (remember that is in today's terms).
There is nothing wrong with New Ireland they market the product add on honestly to 'provide funeral expenses' (see technical guide 301628 v1.10.10) NOT 'savings', NOT 'free life cover', NOT 'a nest egg' as discussed here and in the blog.
This product (and other providers whole of life offerings) is being misrepresented to financial advisers customers.
The recommendation is being driven by unnecessarily large commission payments which incorporate uplife payments. When it comes to the consumers interests many financial advisers are somewhat blinkered by what falls into their own pocket. That amount is increasing each day and this was what was forecast a few years back.
Again quoting from 'The Facts' page 19 - "Commission, PAYING YOU MORE, TODAY. Cash flow is a vital component of any successful business and in the current environment it has never been more important. We are very conscious of this fact and we are now providing you with two commission options.."
Option B (new option) This arrangement will pay you up to 125% initial commission on online cases, subject to a 3 year proportional claw back. 155% initial commission is payable on indexing policies (WOL not indexing but applies to rest of package), and on premium increases on all life choice policies, subject to a 3 year proportional claw back. Renewal commission of 3% is payable for the term of the policy starting month 13 or month 37.
Stevie, please don't try to belittle me. AAM is open so we can challenge and correct what other people say. I don't have a signature I don't drive traffic to my business I don't have an agenda.