The NAV tariff model

Why clients and intermediaries benefit

It is seen as the remuneration model of the future. Instead of acquisition commission, modern fund-linked policies are increasingly tied exclusively to ongoing remuneration based on the current contract balance (NAV).

For the Liechtenstein Life product family of Invest, Pension and Wealth, we rely on the NAV tariff model, too. For intermediaries: wealth and succession planning for partners, with remuneration options including ongoing NAV remuneration. The NAV (net asset value) model differs fundamentally from classic acquisition commission: instead of a one-off payment when the contract is signed, intermediaries receive ongoing remuneration based on the current contract value. Once you have understood the principle, you quickly see that both sides of the relationship between intermediary and client benefit.

If you would like to go deeper into how the NAV tariff model works (including how it differs from net and gross tariffs), you will find a detailed explanation at nav-tarif.de (in German).

Four benefits stand out.

1. Scalability

The decisive lever of the NAV tariff model is its return efficiency. Because there are no acquisition costs, almost the entire client contribution flows into the investment. With every euro, the contract assets grow, and with them the ongoing remuneration for the intermediary.

What this means for clients:

The money invested works towards building wealth from day one. Compared with classic models, the policy starts with a return advantage that accelerates the compound interest effect. This advantage is also reflected in better value for money, a topic that is becoming increasingly important in the regulatory environment.

What this means for you:

Steadily rising remuneration increases your predictable income and the quality of your client portfolio, and with it the value of your business.

2. Transparency

Acquisition commission and (hidden) distribution and administration costs mean that wealth accumulation falls short of clients' expectations, especially in the first years of the contract term. BaFin has identified the cost structure of capital-forming life insurance as one of its focus risks for 2026. The central question is whether the products offer reasonable value for money (BaFin, Risks in Focus 2026). The NAV tariff model creates clarity and ensures transparent cost structures.

What this means for clients:

With a better overview of the costs, it is easy to see what the intermediary earns from. And what they do not earn from: simply signing the contract.

What this means for you:

When clients ask questions, you do not have to justify high acquisition costs, and cost transparency earns you trust and credibility.

3. Client loyalty

Ideally, signing the contract is the start of a long-term business relationship. But in commission-driven practice, contracts often disappear into a drawer, and contact between client and intermediary is kept to a minimum. By focusing on performance, the NAV tariff model transforms the dynamics of advice and increases the incentive to work together more closely.

What this means for clients:

Ongoing advice and regular contract reviews help to tap new potential and optimise performance.

What this means for you:

More intensive client care lets you build a lasting, stable client relationship that brings you reliable income and valuable referrals.

4. Predictability

It is in the nature of fund-linked policies that they only really pay off in the payout phase. Even so, clients (far too) often cancel their contracts early. Why? Mainly because contributions are burdened by acquisition costs, especially in the first years. The NAV tariff model helps wealth build up faster and so increases contract loyalty.

What this means for clients:

The likelihood grows that their fund-linked retirement provision serves its purpose and that a tax-optimised pension at the end of the contract provides financial freedom.

What this means for you:

Cancellation becomes less likely, and less serious if it does happen, because there is no classic commission clawback as with acquisition commission.

Conclusion: a new kind of client relationship

The strength of the NAV tariff model lies in bringing clients' needs into line with intermediaries' interests. Especially in the age of artificial intelligence, human advisory expertise is real added value. Intermediaries who work on a NAV basis can play to this strength and so make the future more secure, for the client and for themselves.

The value of your investment can fluctuate.

Article published by Prosperity Solutions AG