Insurances Commission Rebates

Insurance Rebates

Insuring yourself and your life not only protects you and your lifestyle in case of accident or injury, but it can also make sure that your family doesn’t suffer financial pressure, on top of the motional pressure of a family member getting sick, being injured or passing away.

Commission Rebates on Insurances

You know the importance of having comprehensive insurance policies, but did you also know your insurances provide ongoing commissions to the providers and brokers who sold you those policies? These are known as trailing commissions and if you have any personal insurance policies, including life insurance, total and permanent disability insurance, income protection or trauma insurance, commissions are generated from your policy and paid to the broker or provider you bought the policy from.

Even if you thought you were going direct to an insurance provider to avoid fees by applying over the internet, even if you avoid using a broker, commissions are generated on your insurance policy regardless – so they simply go back to the provider of the policy.

Trailing commissions make up a portion of the premium you pay every year to hold your insurances and they can be as much as 30% of your premium payments. For example, if you are paying $1,000 a year for your insurance policy, up to $300 of that payment could be going to the broker or salesperson who sold you the policy – no matter how long ago that was.

Types of Insurances on Which You Pay Commissions

To know whether your insurances are eligible for commission rebates, you need to know about the types of polices which attract and pay trailing commissions.

Life insurance policies:

• A simple personal insurance policy covering death or terminal illness in the policy holder. 
• Can pay a lump sum to your family if you die, to help them cover their expenses. 
• Can cover expenses like; the mortgage, school fees, car running costs, groceries, household bills and funeral costs. 
• Means your family doesn’t have to sell assets or the family home to survive if you become ill or die.

Total and permanent disability insurance policies:

• Cover you if you are not able to work, ever again. 
• Cover you if you become ill or permanently injured (as defined in the conditions of your policy), as you still need to pay your bills and living expenses. 
• Pay a lump sum to cover the costs of making alterations to your home to accommodate your limited abilities, cover the costs of getting a home carer and any medical costs, as well as providing an ongoing income to allow you and your family to pay bills.

Income protection insurance policies:

• May also be known as salary continuance insurance. 
• Covers you if you are sick or injured and cannot work – resulting in a loss of earnings. 
• Pay a benefit as a regular income to cover your bills, support your family and keep you financially secure so you can maintain saving and investment goals. 
• Each will have specific waiting periods. A waiting period is the time you have to be unable to work, before sickness or injury payments are made to you. A waiting period could be anywhere from 14 days to two years.
• The amount paid to you as a benefit is agreed upon when you open the policy, and should be enough to cover all living and lifestyle expenses. 
• Each will have a maximum benefit period. The benefit period is the amount of time that benefits from your income protection insurance policy will be paid for. Typical benefit periods can be as little as two years, or up to an agreed age, such as 65.

Trauma insurance policies:

• Cover you if you have undergone an illness or trauma and will cover the costs of your recovery. 
• Include a lump sum payment if you are diagnosed with a condition that is within one of the trauma conditions of your policy. 
• Your lump sum payment covers your financial needs as you recover from a critical illness or injury.

How to Secure Commission Rebates on Your Insurances

You may hold one or all of the above personal insurance polices and each one is paying commissions to your broker or provider. However, you can have those commissions paid to you instead, and you can request your refund by registering now.

Once you are registered with Commission Rebates, we become the broker on your insurance policy and we will collect the trailing commissions on that policy. Instead of keeping the commissions for ourselves as your original broker has been doing, we will refund them to you in an annual cheque, or bank account deposit. The details and coverage of your policy don’t change and the policy continues to operate in exactly the same way as you pay your premiums and remain secure in the knowledge you are covered for any eventuality. The only thing that changes is the fact that each year, you will receive a portion of your premiums back, thanks to Commission Rebates.

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