Hi there, I just read the ebook that you wrote, it is a very good book, covers a lot of aspects of personal moneytary matters. Anyway, I do have a question on the ILP. How much do the insurance agents earn by selling one of those policies? I know it is hard to generalize all insurance company, but can you give an assumed percentage? I think they earn quite a lot of commisions from selling ILPs compared to traditional policies, don’t they? I am simply raising this question because when I studied a personal financial planning course in Australia, we were told to stay away from investment-linked insurance products as the insurance agents earn heaps of commisions by seliing those products, literally a shark’s act. Does the same thing apply in Malaysia?

Archicook - 05 Nov 07 at 9:09 pm

Commission might varies among different insurance companies. Generally commission is about 110-125% for agent. The commission payment structure of traditional plan vs ILP is different, but when totaled up is about the same. In fact, selling ILP involves more works of the agent part. The agent need to do a lot of explanation because ILP is so transparent. The policy holder will receive investment statement and insurance charges statement, which will trigger a lot of question to be answered by agents. Policyholders can also do switching, investment top-up, investment reallocation, increase/reduce protection etc. I certainly do more servicing job selling ILP compared to traditional. I personally think that selling traditional earns better money and involve less servicing tasks.

KCLau - 05 Nov 07 at 9:27 pm

well form ebook full of tips. I myself have a lots of ebook but some of them are really crap! But yours is different, a variety of real life example. I personally like your example about the used car. It just wonderful! one can save a lot of money from it! I like that, thanks for your tips!

hedge fund news - 06 Nov 07 at 1:20 pm

Thanks. Hope to see you visiting my blog more often.

KCLau - 06 Nov 07 at 11:45 pm