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Ask the Life Insurance Expert

If I transfer my life insurance policy to a new company does the new agent make money?

Yes, the new agent will make a commission on the sale. What you’re doing is buying a new policy. There really is no “transfer” of life insurance policies between companies. The new company will underwrite you like any new customer.

For a life insurance policy, a typical commission will be more than half of the first year’s premium, according to The Wall Street Journal. Of course this commission is paid by the insurance company, not you.

Last updated: May. 31, 2013