Need to know
I IMAGINE that someone at the Norwich has got hold of my treatise, How To Make Money From Life Assurance (Crowbar Press, price on application.) The secret, as You may recall, is simple: don't buy it, sell it. The customer hopes for a pay-off in two decades' time, the salesman gets his com- mission on day one. No wonder he and his employers have resisted all previous attempts to make him disclose it. Now the regulators are trying again, with Andrew Large, at their head, breathing fire and fury. I shall let him have an early copy of my next publication, Seventeen Ways To Pay Commis- sion And Not Own Up To It (Backhander Press, price two cases of scotch.) The inter- mediary may get cheap credit or wholesale terms or all-found invitations to a conference in Acapulco or . . Prospective buyers of life assurance will be curious to know what the salesman is making, but what they need to know is what they stand to make or lose for themselves. How much will it cost them to surrender their policy early, when their pre- miums have paid for nothing more than the cost of the sale? Flow long do they have to go on paying premiums before they stand to get their money back? What will they lose if they cash in the policy late in its life, with the ter- minal bonus out of sight around the corner? If Mr Large can put these answers fair and square in front of them that will be a more salutary shock than any six-figure fine.
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