Paymentshield is offering advisers an additional commission option which will pay 60 per cent indemnity commission over two years.
The enhanced indemnity commission option will pay advisers selling Paymentshield protection products 45 per cent in upfront commission the year the policy is sold and 15 per cent in upfront commission from the next year onwards.
Advisers will still be able to choose existing commission arrangements. These include an annual commission payment of 27.5 per cent and the double indemnity commission option, where advisers are paid 50 per cent up-front commission in the first year and nothing in the second year.
Advisers can also continue to be paid monthly if they prefer.
Paymentshield sales and marketing director James Watson says the enhanced indemnity commission option will help those advisers, particularly mortgage brokers, who have been hit by lack of activity in the mortgage market.
He says: “This fall in core business has created a cashflow problem for advisers. We recognised the best way to help our broker base is to put money directly into their pockets so they can best manage their business.”
Plan Money director Peter Chadborn says: “On the one hand, it is good for advisers to have options. On the other hand, it is not very forward thinking to encourage advisers to go down the up-front commission route when most people are trying to wean themselves off indemnity commission.”