Commission and Contract Increases Update

Updated 02 November 2020

As part of our ongoing business transformation programme, we are making some improvements in our commissions process and to the application of age and indexation increases for your Income Assured clients.

Commission Changes

Renewal Commission Update

Good news! We have improved the way in which your renewal commission will be paid to you for our income protection contracts.

Income Assured, previously paid yearly in arrears, will now be paid on a month to month basis.

My Earnings Insurance will also now be paid monthly.

We will endeavor to pay any renewal commission accrued for 2020 in January 2021.

My Earnings Protected and Income Assured Enhanced contracts which commenced after September 2018 do not attract renewal commission.

 

My Extra Benefits Commission Update

We have also improved the way in which commission will be paid for My Extra Benefits. These were previously paid separately to our income protection commission payments. From December 2020, all My Extra Benefits commission will be paid at the same time as the initial income protection contract commission.

 

Income Assured Plus and Income Assured Commission

Currently paid bi-monthly, commission for Income Assured Plus and Income Assured Enhanced will be paid weekly from December 2020.

 

Income Assured Age Band and Indexation Increase Changes

In order to treat your clients in a fairer and more equitable way, we are changing the timings when age and indexation increases are applied to your clients’ premiums.

Currently increases apply on the 01 January each year. From 01 January 2021 this will change to the following;

  • age band increases will be applied to the direct debit collection in the month following your client’s birthday, based on the relevant premium tables
  • indexation increases will take effect in the month of the anniversary of your client’s contract, or the anniversary of the date your client added Indexation to their contract if applied after inception.
     

This brings Income Assured contracts inline with My Earnings contracts.

We will also be changing the way we communicate these to your client. Whilst we currently write to you and your clients in December to notify you of the January premium increases, these letters will now be staggered and issued a month before increases are applied.

Please note, commission is currently payable on indexation increases in January, but from January 2021 commission on indexation increases will be payable when the premium is indexed.

All the above improvements are dependent on our business system changes planned for the end of November 2020. We will of course let you know if there are any changes to our planned timeline.

For more information regarding these improvements, please speak to our Member Services Team on 0800 587 5098.