What is the agent commission in LIC Jeevan Umang?
Earn high commission on the policies. You will get 35% commission on 1st year premium, then 7.5% for 2nd and 3rd year + 5% commission till the policy ends.
| Premium Paying Term | Commission 1st Year | Commission From 2nd & 3rd year |
|---|---|---|
| 2 to 4 year | 5% | 2.25% |
| 5 to 9 year | 10% | 5% |
| 10 to 14 year | 20% | 7.50% |
| 15 year & above | 25% | 7.50% |
| CATEGORY | 1st MAXIMUM COMMISSION PAYABLE |
|---|---|
| All Life Insurance Products(except Term Plans) | 2% |
| Term Plans | 7.50% |
| Immediate/Deferred pension or Annuity Plans | 2% |
| 1-year renewable Group Term plan | 5% of the premium paid or Rs. 10 lakhs(whichever is less). |
A agent gets 25% commission on LIC Jeevan Labh policy. This commission is for the first premium and then 2nd and 3rd year the commission is 7.5% and for 4th year onward till whenever the policy is in force the agents gets 5% commissions on premiums.
The LIC Jeevan Umang Policy can offer you a good return with a small amount of investment. Firstly, anyone aged from 90 days to 55 years can opt for this policy. It is a long-term investment opportunity, where after maturity, a lump sum amount is provided with the life insurance.
Can I buy LIC without an agent? A. An agent's commission is included in your premium in an insurance policy sold through an agent. At the same time, buying insurance from the LIC website directly, you can buy LIC policy online without an agent as well as without added commission of the agent.
Comparing the commission payment with new business premium (FY 2021) shows that Max Life has the highest commission ratio at 18%, followed by LIC (12%) and ICICI Prudential Life (11.3%). The high commission payouts reflect the high dependence of life insurers on individual agents.
There is no need and no provision to change your LIC agent, as there is no contract between you and an LIC agent. As far as a policyholder is concerned, the contract is with insurance company. The agent is just a facilitator.
Generally, the commissions start from around 10% to 15% of your premium. This is for the first premium. So if you are paying a premium of Rs 40,000, your agent will pocket Rs 16,000.
Under the new circular, the overall ceiling on commissions continues to be 15% for agents and 17.5% for brokers. For motor comprehensive cover, the cap on commission is 10% for both agents and brokers. For fire, industrial all risks and engineering covers, the cap is 10% for agents and 12.5% for brokers.
How are insurance commissions calculated?
Take the premium paid on an insurance policy and multiply it by your base commission amount. Then, take the premium and multiply it by your override amount. Add the two together. This represents your total commission.
105% of the all the premiums paid, (excluding the underwriting extra premiums and modal loading if any), as on the date of death.
The agent gets 35 percent of premiums paid during the first year by life insurance policyholders. If the agent works harder and gets more people to buy LIC life insurance, he and she can get up to a 40 percent bonus on first-year commission.
| Post Office Agent Commission Chart 2022 | |
|---|---|
| Name of the scheme | Rate of commission |
| NSC (5 years) | 0.5% |
| KVP | 0.5% |
| PPF | Nil |
Retirement Benefits:
While an LIC agent automatically becomes eligible for a life-time pension in the form of commission she/he receives each and every time when any of the policies sold by him gets renewed by anyone from anywhere, the company also offers another equally lucrative retirement benefit to the LIC agents.
Generally, the commissions start from around 10% to 15% of your premium. This is for the first premium. So if you are paying a premium of Rs 40,000, your agent will pocket Rs 16,000.
The agent gets 35 percent of premiums paid during the first year by life insurance policyholders. If the agent works harder and gets more people to buy LIC life insurance, he and she can get up to a 40 percent bonus on first-year commission.
Later, it was amended to certain FPI (first premium income), with 12 policies on different lives. Now, the present minimum target is as under: one can opt any one of these in order to keep his agency inforced for coming year (during his agency year).. (c) Single policy with 1 Lac FPI.
Retirement Benefits:
While an LIC agent automatically becomes eligible for a life-time pension in the form of commission she/he receives each and every time when any of the policies sold by him gets renewed by anyone from anywhere, the company also offers another equally lucrative retirement benefit to the LIC agents.
