The Remuneration Modeller is designed to help advisers understand how the new LIF framework will impact their business, and how subtle changes to remuneration choices can change revenue and business value over time.

The modeller includes the commission structures that will come into play when the Life Insurance Framework measures are introduced from Jan 1 2018, and allows advisers to personalise and compare remuneration by taking into account the current inforce premiums in their business, plus their new business, lapse rates and growth plans.

Remember, it's not a perfect science but the modeller is designed to give indicative results that will help advisers make informed business decisions.

Start

How much new business will you write next year? - from 1 Jan 2018 -

We can work out what income you will receive on the new structures, and show how that would have compared to previous years on the old structure, based on your preferences.

New business

New clients p/yr
New business premium p/yr
Average premium per client
$0
Please enter a value

Commission Breakdown

Upfront
Hybrid
Level
Client breakdown
First year commission rate
Please enter a value

New business lapse rates

First 12 months
Month 13 to 24
Please enter a value

Fees for advice

Do you charge a fee for initial advice?
For how many new clients?
What is the average fee?
Please enter a value

NextAdd your Inforce details
Please check the average premium per client to make sure it aligns with your business predictions.

Enter your current Inforce premium

Existing clients

Inforce premium
Number of existing clients
Please enter a value

Current commission breakdown

Upfront
Hybrid
Level
Client breakdown
Ongoing commission rate
Please enter a value

Inforce lapse rate

Inforce Lapse rate
Please enter a value

Fees for advice

Do you charge a fee for ongoing advice?
For how many clients p/yr?
What is the average fee?
Please enter a value

NextCheck our assumptions and see the results

Whilst we know over the years there have been many different commission structures from a range of various providers we believe they can be categorized into 3 distinct groups.

  • Upfront:10 - 11%
  • Hybrid/Stepped:14 - 24%
  • Level:20 - 30%

Feel free to use these as a guide only and enter the % that most represents the business on your books.

Want more accurate results?

Contact your Asteron Life Sales representative for a full review of your Asteron Life portfolio

Contact Asteron Life

You can keep or adjust the default assumptions

No two advice businesses are the same - update these figures based on your growth plans.

Assumptions

New business growth
Inforce growth rate
Business value multiplier
Please enter a value
NextCalculate and see your results

Results

We have displayed your projected income if the current structure were to remain in place, compared to what your future income will be, based on your projections, in order to display the likely impact these reforms will have on your business. By using the check boxes below the graph you can choose to see these elements individually or combined.

Year on Year Revenue Comparison

  • Current remuneration model
  • Future remuneration model
  • Comparison
Print/save

Need ideas to grow your revenue?

See how subtle changes in your lapse rate can impact your overall cashflow and revenue. What can seem like a small percentage can add up substantially and demonstrates the value of a strong retention strategy.

Cashflow impact of lapses

First 12 months
Month 13 to 24
Inforce lapse rate
Please enter a value

You may want to calculate the impact charging an advice fee has on your revenue in the future state. While this may be a big shift in behaviour, it will help you determine the value of the service you provide and may have a significant impact over the life of your business.

New business fees for advice

Clients charged
Year started
Average fees charged
Clients charged cannot be greater than number of new business clients.

Inforce fees for advice

Clients charged
Year started
Average fees charged
Clients charged cannot be greater than number of existing clients.
Recalculate

Need some ideas to help retain clients or about implementing a fee for advice strategy?

Contact Asteron Life