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Fees on Insurance Products

December 4, 2005 by Jonathan Stein

When you buy an insurance product, do you know how much of a fee you are paying? On variable annuities, you may be paying a fee more than you thought. The Minneapolis Star-Tribune has an article today about these fees.

The California Department of Insurance admits that complaints are rising on these fees. But they are not only on annuities. You should ask your agent or broker what commission they are being paid by the insurance company. It is not uncommon for a broker to recommend one policy over another based on the fee that the agent is paid.

Consumers are entitled to know the compensation of their insurance agent. Since there are no disclosure rules for most types of insurance, it is up to you to ask for the information.

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