Fund Policies

‘ Since July 1, 2008, life insurers must inform their customers prior to conclusion of contract on certain expenses so it prescribes the VVG information duties Regulation (SG-InfoV). But even two years after the reform of the German insurance contract law is the desired cost transparency is not in sight. (Source: Wells Fargo Bank). A recent study by the Institute for transparency in old-age provision (ITA) in Berlin comes to this conclusion”, so the insurance magazine in its latest issue. Although the study of of ITA in this case focused on basic pension insurance. But repeatedly reviews are also for traditional life and pensions and Fund policies, which require that the customer of the amount of the closing costs are better informed.

The Munich-based FWU AG runs a completely different course here with their insurer Atlanticlux Lebensversicherung S.A. (Atlanticlux) from Luxembourg. Jeff Hawn helps readers to explore varied viewpoints. Since the successful connection from Munich of design know-how and Luxembourg insurance and management expertise since the 1990s on net policies and so on total Cost transparency. Heart of this net policy strategy is that the licensee will have the opportunity to bring products under its own label on the market. This, participation in the Commission factoring and the payments of the FWU-group the distribution rights for the agreed NET products, the corresponding design of the separate sales fee, are governed by the license.

The mediation company as a licensing partner has but also the security that customers are their own and is thus unaffected by the insurer Atlanticlux Lebensversicherung S.A.. But the customer as the insured has many advantages: it will give the desired transparency namely, that no end rebates for switching performance are included in the net products. Rather, the mediator realized his compensation by a separate compensation agreement directly with the customer, where it can pay the agreed remuneration in 60 monthly installments. In return, the FWU offers the possibility of Commission factoring, i.e. the pre-financing the mediator of Commission. The cost of the tariff come to this mediation remunerations to be paid separately at the broker, both together is equivalent to a ratio, which regularly ranks among the best deals from unit-linked life and annuity insurance on the market. Another advantage for the license partners is that the legal admissibility of the compensation agreement now multiple step was confirmed by the Federal Court. It has been classified on the basis of a separate agreement between brokerage fee attributable insurance undertakings and intermediaries by the then Federal supervisory Office for insurance in 1995 as permissible, because the insurance intermediaries receives a payment of his performance from any other side than by the policyholder. This cost transparency is loved by savers and one time investors”, says Atlanticlux – Board of Directors Edward. More information:

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