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Commission Options
Personal Income Protection
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On-line Income Protection business submitted electronically
Indemnity
Indemnity Commission terms with initial commission paid as a lump sum at the beginning of the initial period. The rate of initial commission is 130% of the first month's premium multiplied by 12. The commission earnings period is 36 months.
Non indemnity
Non indemnity Commission terms with initial commission paid in 36 equal monthly instalments over the initial period. The rate of initial commission is 130% of the first month's premium multiplied by 12 and enhanced by 10% (equal to a rate of 143%).
Renewal Commission
Following the expiry of the initial period renewal commission will be paid annually each year at the rate of 2.5% of the annual premium received.
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Paper-based Income Protection business
Indemnity
Indemnity Commission terms with initial commission paid as a lump sum at the beginning of the initial period. The rate of initial commission is 120% of the first month's premium multiplied by 12. The commission earnings period is 36 months.
Non indemnity
Non indemnity Commission terms with initial commission paid in 36 equal monthly instalments over the initial period. The rate of initial commission is 120% of the first month's premium multiplied by 12 and enhanced by 10% (equal to a rate of 132%).
Renewal Commission
Following the expiry of the initial period renewal commission will be paid annually each year at the rate of 2.5% of the annual premium received.
Variations to Contract
Variations to contract involving a premium increase of 10% or above will generate initial commission of 120% of the increased monthly premium multiplied by 12.
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Classic & Classic Plus
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On-line Income Protection business submitted electronically
Indemnity
Indemnity Commission terms with initial commission paid as a lump sum at the beginning of the initial period. The rate of initial commission is 140% of the first month's premium multiplied by 12. The commission earnings period is 36 months.
Non indemnity
Non indemnity Commission terms with initial commission paid in 36 equal monthly instalments over the initial period. The rate of initial commission is 140% of the first month's premium multiplied by 12 and enhanced by 10% (equal to a rate of 154%).
Renewal Commission
Following the expiry of the initial period renewal commission will be paid annually each year at the rate of 3% of the annual premium received.
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Paper-based Income Protection business
Indemnity
Indemnity Commission terms with initial commission paid as a lump sum at the beginning of the initial period. The rate of initial commission is 125% of the first month's premium multiplied by 12. The commission earnings period is 36 months.
Non indemnity
Non indemnity Commission terms with initial commission paid in 36 equal monthly instalments over the initial period. The rate of initial commission is 125% of the first month's premium multiplied by 12 and enhanced by 10% (equal to a rate of 137.5%).
Renewal Commission
Following the expiry of the initial period renewal commission will be paid annually each year at the rate of 3% of the annual premium received.
Variations to Contract
Variations to contract involving a premium increase of 10% or above will generate initial commission of 50% of the increased monthly premium multiplied by 12.
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Payment
Indemnity
Commission is paid bi-monthly by Direct Credit or Cheque and we aim to pay this within 16 days of the policy start date.
Non indemnity
Commission is paid monthly in arrears by Direct Credit.
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Examples of on-line indemnity commission
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CLASSIC
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PERSONAL INCOME PROTECTION
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| Female |
Male |
| Age 30 |
Age 36 Level Benefit |
| Cover: £645 per month |
Cover: £1,140 per month |
| Class 4, smoker |
Class 1 professional, non-smoker |
| Nil Deferment Period |
26 Week Deferred |
| Retirement Age 60 |
Retirement Age 65 |
| Premium Cost: £24.40 per month |
Premium Cost: £25.88 per month |
| Commission: £409.92 |
Commission: £403.73 |
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PERSONAL INCOME PROTECTION
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CLASSIC
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| Male |
Male |
| Age 34 Escalating Benefit |
Age 40 |
| Cover: £1,542 per month |
Cover: £1,000 per month |
| Class 3, non-smoker |
Class 2, non-smoker |
| 13 Week Deferred |
13 Week Deferred |
| Retirement Age 60 |
Retirement Age 62 |
| Premium Cost: £70.79 per month |
Premium Cost: £39.07 per month |
| Commission: £1104.32 |
Commission: £656.38 |
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