Sales commissions represent as much as 90 percent of the first-year premium paid for a cash-value life insurance policy.

Question

Sales commissions represent as much as 90 percent of the first-year premium paid for a cash-value life insurance policy.​

Quizplus · Accepted Answer

Sales commissions for life insurance policies can be high, with cash-value policies often paying out up to 90 percent of the first-year premium in commission. This can create an incentive for agents to sell policies that may not be the best option for the policyholder's needs.

Sales Commissions Represent as Much as 90 Percent of the First-Year