Policies have had a bad rap for their high costs, but the cost gap is narrowing with many offering access to the same unit trust funds, including low-cost index-tracking ones, and investment platforms you would use if you made your own investments with a big life company.

Momentum's Freek Kruger says the commission paid to advisers on policies is regulated, but adviser fees for investments made through an investment platform are not. However, some companies limit the fees that independent advisers charge. Commissions and fees must be disclosed, so check them out...

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