Michael Fox — Licensed Insurance Advisor
Michael Fox Insurance
Phone: 856-676-9358
Email: michaelfox133@icloud.com
michaelfoxinsurance.online
How Financial Advisors Get Paid
Printed September 16, 2026
How does a financial advisor actually get paid?
Short answer at Michael Fox Insurance: Michael generally does not charge a separate consultation or advisory fee. If a policy or annuity is issued, the insurance carrier may compensate him through commissions that are built into the product's overall pricing. That does not mean the product has no costs — and this page walks through both, in plain English.
No separate advisory fee paid directly to Michael
Michael's compensation generally comes from the issuing insurance carrier when a policy is placed. Product-level costs and contract provisions still apply and vary by carrier and product.
Never held by me
Checks and transfers are made out to the carrier — never to me personally.
Direct line to the carrier
You can always call the insurance company directly. I'm a help, not a gatekeeper.
Follow the money — step by step
Here's exactly what happens when a client opens a policy or funds an annuity with us.
You compare your options
We review products, guarantees, limitations, costs and tradeoffs. You decide whether any option fits your needs.
You apply directly with the carrier
Applications, premiums and eligible transfers are submitted to the issuing insurance company — not paid personally to Michael.
The carrier may compensate Michael
If coverage is issued, the carrier may pay Michael a commission based on the product and premium. Compensation varies by carrier and product.
Michael continues to provide service
Michael remains available for policy reviews, beneficiary questions and claims assistance. The insurance carrier remains responsible for administering the contract and paying eligible benefits.
Where every dollar travels
You
Premium / transfer
Insurance Carrier
Issues and administers the contract
Michael Fox
Paid by carrier
Your premium or transfer is sent directly to the issuing insurance carrier and is handled according to the terms of the contract. Michael is compensated by the carrier if coverage is issued — you never write him a personal check.
The three ways we get paid
We believe you should know exactly how your advisor earns a living. Here are ours — all of them.
Insurance company commissions
When a client places a life insurance, long-term care, or annuity policy, the issuing carrier may pay a commission. That commission is built into the product's overall pricing, which is set by the carrier and filed with state insurance regulators. Compensation varies by carrier, product and premium.
Buying through Michael generally does not raise your premium versus applying to the same carrier for the same product — carrier-filed rates apply either way.
Service / renewal compensation
On policies that stay in force, the carrier may pay ongoing renewal or service compensation over the years. That's what funds the reviews, beneficiary updates, claim support, and questions you'll have along the way — without a separate advisory fee billed to you.
Referrals from happy clients
When clients refer a friend or family member, that's the highest compliment we can receive. We're not paid by you for the referral — we're paid by the carrier if the new client decides to move forward, just like any other client.
How we compare to a typical brokerage advisor
Many advisors handle brokerage or managed investment accounts and charge an assets-under-management fee — typically around 1% per year — deducted right from the client's account. That's legitimate and required to be disclosed. It is also very different from what we do.
Brokerage / AUM Advisor
- Fee (often ~1%/yr) deducted from your account
- Fee reduces your balance every quarter
- Required to disclose the fee
- Advisor may hold custody through their firm
Michael Fox Insurance
- No separate advisory fee paid directly to Michael
- Compensation generally comes from the issuing carrier
- Money is made out / transferred to the carrier
- You can call the carrier directly any time
DIY (going direct)
- Same premium as going through us
- No personal guidance comparing carriers
- No advocate during underwriting or claim
- You do the paperwork and follow-up alone
Bottom line: with Michael, there is no separate advisory fee billed to you. Insurance and annuity contracts do have their own internal costs, which vary by product — and reviewing those costs together is part of the process, not an afterthought.
Common questions, answered honestly
If you don't charge me a fee, how can your advice be any good?
Insurance carriers have built distribution compensation into their pricing for over a century. Carrier-filed rates generally apply whether you apply directly or work with a licensed agent, so you get a licensed advocate without a separate advisory bill. That compensation is part of the product's overall pricing, not an extra charge added to your application.
Does that mean the policy itself has no costs?
No — and anyone who says otherwise is not being straight with you. Depending on the contract, insurance and annuity products may include mortality and expense charges, administrative expenses, rider costs, surrender charges, spreads, caps and participation rates. Those costs are part of the product's pricing, and Michael reviews the applicable ones with you before you decide.
Do you ever hold my money?
No. Every check is made payable directly to the insurance company. Every transfer goes carrier-to-carrier (a 1035 exchange or trustee-to-trustee transfer). I never have custody of your funds.
Can I contact the insurance company without going through you?
Absolutely. Every carrier has a policy-owner service line, an online account, and claim department you can reach directly. I'm here whenever you want help — but you're never locked out of your own policy.
What about referrals — do you pay or receive referral fees?
When a client refers a friend or family member and that person decides to move forward, the carrier pays me the same way as with any client. There are no kickbacks to clients and no hidden referral arrangements that affect your costs.
Why don't you offer managed brokerage accounts with an AUM fee?
Because Michael's practice is insurance-based. An advisor charging a 1% annual fee on a $500,000 account bills $5,000 a year directly from that account. Insurance products don't bill you that way, but they carry their own internal costs — a different structure, not a free one. Comparing both honestly is the point of this page.
What clients should still review
Compensation is only one piece. Before you sign anything — with Michael or anyone else — these are the items worth understanding line by line.
- Premium requirements
- Surrender periods and charges
- Mortality and expense charges
- Administrative expenses
- Rider costs
- Caps, spreads and participation rates
- Policy-loan provisions
- Guaranteed versus nonguaranteed values
- Tax considerations
- Carrier financial strength
Product costs and contract provisions vary by carrier and product. Michael Fox Insurance does not provide legal or tax advice; consult your CPA or attorney about your situation. You can review your state's producer licensing and consumer resources through the NAIC Consumer Resources or the New Jersey Department of Banking and Insurance.
Share this with someone who's been burned by hidden fees
Transparency is rare in this industry. If this page helped you understand how it actually works, send it to a friend or family member who deserves the same clarity.
Written or reviewed by Michael Fox
Licensed insurance professional · More than 25 years of financial-services experience
Last reviewed: August 2026
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