The Findex Group, Australia’s leading, independently owned provider of wealth, accounting, and risk protection advisory services, with over $17 billion under advice, has announced all new life insurance policies recommended through its Centric Wealth and Financial Index Wealth Accountants divisions will be commission-free.
“This first commission-free Findex life insurance product will originate from the BT Group. The group has plans to extend the range of providers in coming months once negotiations are complete with other life insurance companies,” said Michael Wilkins, Chief Adviser Services at Findex Group.
“This new life insurance product will offer lower life insurance costs to our clients ranging from moderate savings to as much as 30%, with the actual quantum depending on individual client circumstances. These commission-free policies will involve a net premium expense and an annual transparent, administrative service fee.”
“The history of the industry and its legacy systems, combined with the dominant culture of high up front commissions in the advisory industry, have been impediments to change so far.”
“Findex has been looking for suitable partnerships with responsible life insurers for several years, well ahead of the Trowbridge review of the life industry, because we were concerned about the futility of high commission products in that they simply encourage churn.”
“We are pleased to be able to work with insurance companies who have clearly acknowledged the need for change. We congratulate BT on its leadership in this field,” said Mr Wilkins.
“We welcomed the Trowbridge Report but have always believed in aiming higher by seeking 100% commission-free model. We are delighted that product developers such as BT have been able to create a product that is consistent with our philosophy,” he said.
“The Findex commission-free life product will be rolled out to all the group’s divisions later this year once appropriate systems are in place,” he said.
Source: Findex
