How does life insurance agent earn if no commission comes from insurance company?
None of the life insurance covers of any company with money back or growth plans is good. The reason is that the commissions of the agents are very high. Basically is a matter of educating insured and he will never buy an insurance product. In that case there will be no insurance agents. So it better that number of insurance agents is reduced gradually over a period of time by asking them to charge fee from clients for rendering the service. In that case they will also be disclosing their fee and also professionally responsible for mis-informing the insured which happens in every case. In USA 90% of the insurance business is in term policies and rest 10% is in growth and investment plans. Similar scence will be there in India as well in next 4-5 years that is the target of the govt. As per IRDA rules it is mandatory for an insurance agent to disclose the commission that he is earning on a policy if asked. But Indians are usually to shy to ask such questions. And IRDA is too shy to make
