Interesting you should say that. Have you ever figured out how much you are paying in fees every year for your money to sit in tax-deferred plans (401k, IRA, 403b, SEP, Solo, Simple, 457, etc.), brokerage accounts (stocks, bonds, mutual funds), and all other “brokered” accounts? Depending on the size of your accounts, it can be hundreds of thousands of dollars, all of which comes out of your principal and out of your pocket.
My commissions do not come out of your policy.
Your policy is managed by the “policy” side of the insurance business. They are tasked with the management of the insurance business from start to finish. That includes applications, underwriting, actuarial, products, in-force policies, cash value, death benefits, policy loans, policy pay backs, etc., and the financial stewardship of our premiums.
Commissions are a company expense and are managed as part of a profitable P & L. Commissions are different for every agent for every policy. There are dozens of variables that go into the commission calculation, and they are constantly changing to meet the needs of the business.