Commissions are necessary to sell insurance products. Someone has to sit down and explain the product to the consumer, understanding his needs. To assume these products will be sold without a commission, which varies between 4% and 8% in case of Ulip products, is not comprehensible. Insurance is a long-term saving instrument and financial advisors need to be compensated. Irda has laid down guidelines on disclosures of commission. I believe that the two regulators will arrive at a conclusion soon.

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