Lapsing your Insurance policy and what it means to you (Part 2)
You can even end up under suspicion for insurance fraud with you and your agent in connivance sharing the commissions. The typical insurance agent commission payout is around 50% for term insurance for the total amount of the first years computed premiums, and to a whopping 60% for whole life insurance for the first years computed premium payments. So the commission amounts can be high enough and regularly do entice people to do such dastardly acts. Agents also receive additional perks for signed contracts placing you and your agent under more suspicion of connivance. If possible, try to be as resilient as possible so you can get your agent and insurance company to assist you with the best package that is possible for your specific applications.