They are part of understanding how insurance advice and distribution are paid.
Ask for the expected initial and ongoing commission in rand where possible, who receives it and which policy charge or premium supports it. Then ask what work it pays for: needs analysis, application, underwriting follow-up, claims help or ongoing review. If a replacement is proposed, understand whether new commission will be generated and how that was considered.
Commission may be regulated and disclosed differently across products. A statement that “the insurer pays” does not remove its relevance, while a high payment does not prove the advice is wrong. The concern is undisclosed influence, and whether the recommended benefit, terms and affordability still make sense.
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Add four lines to your policy record: initial commission, ongoing commission, recipient and related service. If the amount is expressed only as a rate, request a rand illustration for the expected premium.
Ask your advisor
- How and when are you paid if I accept this policy?
- Would the amount differ if I keep, adjust or replace existing cover?
- What ongoing work is linked to ongoing remuneration?
Clear payment information allows you to assess advice without assuming either purity or wrongdoing.
Next: Insurance promises are contractual, not conversational