In a 1st, ICICI Prudential Life links commissions to fund value

Mumbai: In a first, ICICI Prudential Life Insurance has introduced a unit-linked insurance plan where distributor commissions are linked to the customers' fund value.
Typically, insurance product commissions are front-loaded, meaning a significant portion of what the policyholder pays in the first year goes to the agents to incentivise them to sell more.In the subsequent years, the agent gets a much smaller part of the annual premium as trail commission. This structure has been criticised for promoting a churn of policies. The ICICI Pru Platinum offers commissions that increase as the insured's savings grow. This structure encourages distributors to promote long-term investments.
The platinum policies also provide customers with unlimited free switches between asset classes without any cost or tax implications. Customers can choose from a range of 21 funds, including 13 equity, four debt, and four balanced categories, along with four portfolio strategies.