Commission Terms

The commission we pay you will be different depending on whether you're on a reduced or full earnings period.

If you want to know more about your commission terms, please contact our Protection Agency team by calling 0345 6094 500 or emailing

Yes, we are one of the few providers that still offer commission on a reduced earnings period (REP) of 2 years. By choosing us you can benefit from receiving your initial commission over 2 years instead of 4. We know that some advisers value this option so we'll continue to offer it, as long as it's commercially viable to do so.

The advantage to you of receiving commission on a reduced earnings period of 2 years is that you will have received the full amount of initial commission, even if your client cancels the plan after 2 years.

The advantage of receiving commission on a full earnings period is that your commission in annual premium income terms will be higher than for reduced earnings period.

Advisers and providers want business to stay on the books for as long as possible and we calculate payment of commission on the basis that a plan will be on our books for a considerable number of years.

We're entitled to claw back a proportion of commission if the plan is cancelled in the early years. The majority of providers do this over the first 4 years, known as full earnings period (FEP).

If a REP plan is cancelled in the first year, we claw back the same amount of commission that we would if the plan had been a FEP.

commission clawback graph

Yes. You can choose to change from a 2-year earnings period to a 4-year earnings period at any time. Please contact for more information.

It depends on the terms of business you have with us. For example, if you belong to a network that's negotiated the option of a 2-year earnings period, yes you can choose. However, if your current agency agreement with us is on a full earnings period then you can’t change to a 2-year option without our agreement and your agency's permission to do so.

No, we only pay commission on a 2-year earnings period on our Personal Protection Menu, Business Protection Menu and Relevant Life Plans. We will pay commission on our Pegasus Whole of Life Plan on a 4-year earnings period.

The rate we pay will depend on whether you are on a 2-year or 4-year earnings period. If you choose a 2-year earnings, we’ll pay the rate agreed for 2-year earnings on all plans you write. However, there are a few exceptions, some products’ commission will be earned over the full 4-year earnings period as they are only available on this basis.

Our terms of business don’t drill down to the level of commission detail so that we have more flexibility to adapt to market conditions but still meet advisers’ needs. This allows us to offer competitive commission terms at all times.

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.