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General
PRUDENTIAL FLEXIBLE PROTECTION PLAN
Initial Commission
Initial Commission can be paid on an indemnified or non-indemnified basis. The Initial Commission Period will be either 2 years or 4 years.
The following will trigger the payment of commission:
- Commencement of a new plan
- Premium increase due to alteration of plan
- Premium increase due to indexation
- Premium increase due to escalation under Low Start premium payment pattern
The following will trigger the claw-back of indemnified commission, during the Initial Commission Period.
- A benefit reduction
- A benefit removal
- Lapse of the plan
Renewal Commission
Renewal commission at the rate of 2.5% of each monthly premium is paid on receipt of that premium commencing at the end of the ICP. There is no Agent Enhancement applied to renewal commission.
Commission Sacrifice
An intermediary can take a lower amount of initial commission and renewal commission in exchange for a lower premium for the Planholder. The general principle is that the terms for commission sacrifice are profit-neutral, i.e. the present value of the commission given up is equal to the present value of the reduction in future premiums
