Provider says move will reduce likelihood of product bias
Friends Life is bringing the commission rates it pays on income protection (IP) products to IFAs into line with those for other protection products.
It will now pay the same level of commission for IP, critical illness (CI) and life cover, whereas previously IP commission was approximately six sevenths of other rates.
Steve Casey, head of marketing and individual proposition development for individual protection at Friends Life, said the change has been made to remove any potential product bias, and in recognition of the work advisers do on IP.
He said: "We all understand the detailed work required by IFAs in advising on IP policies as there is a degree of complexity involved.
"By bringing IP commission levels into line with those for CI, we are recognising the time and effort taken by intermediaries to advise on this vitally important product."
Casey added that other providers’ policies differ, with approximately 60% of firms having the same commission rates across all products and the remaining 40% offering different rates.