What Is Rebating In Life Insurance? 
What is rebating in Life insurance ? It is a situation where some of the commission earned in the sale of life insurance is given back to the insured as an incentive to close the deal . Rebating is against the law in some states and some companies do not allow rebating in regards to their product . Rebating goes against the fair purchase of life insurance as it creates situations where one person could get a better deal than another for the same product . Sure it 's great if you get some money back but , did you get as much as that other guy ? Did you report your rebate as income to the IRS like your supposed to ? Rebating sort of creates a mess and that is why most states and most insurance companies frown upon it . 