The Australian Government has not made any changes to the existing commision structure for Life Insurances (Income Protection, Disability Insurance, Life Insurance, Trauma or Critical Illness insurance etc) the argument being that people need these insurances and without the incentive of sales commisions there would be no reason for advisors to recomend life insurance to clients.
I think this is a load of crap! As an accountant I don't get paid commisions for any of the work I do but I still push for more clients, more work etc. Sure for financial reasons (to grow my business) but in an unbiased way.
The reality is that financial protection is really important but perhaps everyone does not always need the most expensive products with all the bells and whistles that pay the highest commision...
In the past we have accepted and still accept commisions from life companies but we are transitioning away from them and hopefully from the 1st of July all commisions will be creditted against work done for clients and excess refunded to clients.
Alan Maddick
www.smallbusinessworks.com.au
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