Commissions are necessary to sell insurance products

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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