A person who works for LIC of India to market plans to the general public is known as an agent. The primary source of income for LIC agents is commission, which they receive once each insurance buyer pays the premium. The commission % varies depending on the type of policy offered. There are numerous kinds of policies, and the agent may receive up to a 35% annual commission from them. So, see below the LIC agent bonus commission chart.
LIC Agent Bonus Commission Chart:
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It is monetarily rewarding and soul-satisfying too. The commodity that a life Insurance agent sells is unique – you sell and service financial security and hence the pattern of remuneration for the same is also unique. The life Insurance profession is the “best paid hard work”.
The harder you work the more commission you get. Moreover, the sale of life Insurance gives repeated commission payments for one sale and what is more, they continue even after the agent resigns or dies – provided he has the required business in force as per rules.
First Commission on sales:
It is both financially and emotionally fulfilling. A life insurance agent offers a unique product: financial security. As such, the compensation structure for selling and servicing this commodity is also distinct. The “best-paid hard work” is found in the life insurance industry.
You receive a higher commission the harder you work. Additionally, commission payments for selling life insurance are repeated after a single transaction and continue even in the event of an agent’s resignation or death, provided that the agent has the necessary business operating in accordance with regulations.
Bonus Commission:
If you meet specific requirements for the total first year’s premium secured and the number of lives you have insured in your agency year, you are eligible for bonus commission at the rate of 40% of the eligible first-year commission.
Retirement Benefit:
Schedule VI of the (Agents) Rules, 1972 provides for the payment of gratuities up to a maximum of Rs. 2,00,000/-as long as the agent has fulfilled the business guarantee for at least 15 years, or what are known as “qualifying years.”
Hereditary Commission:
If an agent passes away while his agency is still operating and the agency has been in operation for two years or longer, his heirs or designee will continue to get the renewal commission, provided that the business was operating at least Rs. 1 lakh at the time of the agent’s death.
Renewal Commission:
In addition to receiving 7.5 percent of the premiums paid by policyholders in the second and third years (per standard tables and terms), the agent also receives a renewal commission of 5% on each year’s premium beginning in the fourth year.
The renewal premium is where the renewal commission is due. As a result, you have to make sure your client maintains the policy. You will be doing him a favor if you remind him to pay the premiums.