It’s appropriate that the Government Actuary is taking a hard line on trail commissions for KiwiSaver, as reported on money management site Good Returns today.

The same stance should be taken for the life insurance industry. Currently traditional NZ insurers pay trail commissions to the adviser who has sold the insurance policy. The “trail” part means the adviser is paid a percentage of the premium EVERY YEAR for the life of that policy.

That’s potentially thousands of dollars added to the cost of the product – costs that are paid for by the policy holder.

That’s why Pinnacle Life doesn’t pay trail commissions. We pay advisers a one-off fee for advice which results in a consumer buying a Pinnacle Life policy.

Only fair when it’s a one-off piece of advice.