The effect of commission versus non-commission benefits on customer value
the case of life insurance policy performance
DOI:
https://doi.org/10.61190/fsr.v16i2.4884Keywords:
Life insurance, Sales commission, Financial planningAbstract
In selling life insurance, some degree of negotiation of commission between sales person and consumer takes place in the form mixing permanent with term insurance in one policy, the term coverage carrying no commission to the agent, allowing the agent to trade off compensation in favor of enhanced cash value performance. Looking only at cash-on-cash return-premium contributions versus cash surrender value-this article finds that this form of commission negotiation does enhance client value in life insurance to varying degrees, but not in a predictable, consistent or statistically significant fashion.
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