As an LIC of India insurance agent, one of the most rewarding aspects is the attractive commission structure. Agents earn a commission on every policy sold, calculated as a percentage of the premium paid by their customers. The commission rates are substantial, ranging from 15% to 35% of the first year's premium and 5% to 7% for subsequent years. Additionally, agents receive commissions as long as the policy remains active, ensuring a continuous income stream. This setup allows agents to cultivate a loyal customer base and enjoy recurring commissions for years to come. Below is a typical commission structure for a regular plan:
| Details | Commission in Rs. |
|---|---|
| First Year Commission | 15-35% of Yearly Premium |
| Bonus Commission | Up to 40% of First Year Commission |
| Second and Third Year Commission | 7% of Yearly Premium |
| After Third Year | 5% of Yearly Premium |
The following table illustrates the commission and bonuses earned by an LIC (Life Insurance Corporation of India) agent for selling a Jeevan Anand policy. This policy has a term of 21 years and an annual premium of ₹1,00,000. The calculations are based on the standard commission structure for LIC agents.
| Serial No. | Bonus Details | Bonus Amount | Remarks |
|---|---|---|---|
| 1 | First-Year Commission | ₹25,000 | 25% of the first-year premium |
| 2 | Renewal Commission (2nd Year) | ₹7,500 | 7.5% of the second-year premium |
| 3 | Renewal Commission (3rd Year) | ₹7,500 | 7.5% of the third-year premium |
| 4 | Renewal Commission (4th Year to 21st Year) | ₹90,000 | 5% per year from the fourth year onwards (₹5,000/year for 18 years) |
| 5 | Total | ₹1,30,000 |