[quote=SK in CV][quote=Raybyrnes]SK in CV. Analyzing a financial investment based on the commission of the sales agent vs analyzing based on the benefit of the purchaser relative to other investments is pretty poor analysis. Northwestern Mutual is a very reputable company.
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Yeah, you’re right. But having analyzed scores of whole life policies, both before and after clients have purchased them, I have almost always come to the same conclusion. They’re a better investment for the broker than they are the buyer. And there are almost always better alternatives.[/quote]
If one must buy commission product then search out a fee-only insurance consultant first. “Today, the agent and policy applicant have
considerable discretion in structuring a policy and premium so as to reduce the standard commission by 80% or more. This is done by designing a policy with a maximum amount of term insurance and a minimum amount of permanent insurance and then having most of the annual premium payments take the form of “additional premiums” or “dump-ins” on which the commission may run about 3 percent, or a mere 5 percent of the standard first-year agent’s commission.”
