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intercst, you wrote:

<< I was particularly surprised to learn from the article that commissions on some forms of life insurance can reach 100% of the amount invested.

In the big city I live in, even the folks involved in cocaine distribution and prostitution don't see margins like that. <grin>

Apparently, you're reading that article with jaundice eyes . . . ??? The article says NOTHING about commission on "the amount invested". It DOES talk about commissions on "the sale of financial products". For example, Term Life Insurance is a "financial product", but it certainly has nothing to do with "the amount invested" (see below for the excerpt).

When the issue of commission have come up in these boards, I have continually pointed out that commissions on Term Life Insurance can go as high as 125%. Note that this commission is only paid for the 1st year with no renewal commissions - a lot different from the 15% every year your homeowners insurance pays your agent. Hmmmm? You'd rather pay 15% every year for 20 years or 125% in the first year? I make this point only to try to put thing a little more into perspective. I thought you saw some of those posts and am surprised that the 100% figure has surprised you.

"Commissions are paid to a broker or agent's firm for the sale of financial products and can range from:

0.25 percent for low-load mutual funds
1 percent to 3 percent for trade commissions
3 percent to 8 percent for load mutual funds
3 percent to 8 percent for load annuity products
25 percent to 100 percent (not a typo!) for load Life Insurance products"

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