LIC’s Jeevan Tarun Plan No. 834 is a popular children’s money-back plan that combines savings and protection features, designed to meet educational and other needs of growing children. As a participating, non-linked life insurance plan, it offers both survival and maturity benefits along with life coverage. For LIC agents, understanding the commission structure for this plan is essential for strategic planning and income projection.
This article provides a detailed breakdown of the agent commission chart for LIC Jeevan Tarun, including how commissions are calculated and additional incentives available.
Overview of LIC Jeevan Tarun (Plan 834):
Table of Contents
- Plan Type: Participating, non-linked, limited premium payment money-back plan
- Eligibility Age (Entry): 90 days to 12 years
- Policy Term: Up to the age of 25 of the child
- Premium Payment Term: 8 to 20 years, depending on entry age
- Maturity Benefit: Paid at age 25
- Survival Benefit: 5 years before maturity (as per option selected)
LIC offers a structured commission system for its agents based on the premium paid and the policy year. The commission includes regular commission, renewal commission, and bonuses or incentives based on performance.
LIC Jeevan Tarun 834 Agent Commission Chart First-Year Commission:
Agents earn a higher percentage of the first-year premium.
| Policy Type | First-Year Commission (FYC) |
|---|---|
| Regular Policies | 25% of Premium (with bonus up to 30%) |
| With 15% Bonus Commission (on FYC) | Effective rate up to 28.75% |
Note: For single premium policies (rare in Jeevan Tarun), commission is generally lower (2%).
Renewal Commission:
Agents also earn a percentage on premiums paid in subsequent years.
| Policy Year | Renewal Commission |
| 2nd & 3rd Year | 7.5% |
| 4th Year Onwards | 5% |
Bonus/Incentive Commission:
Depending on the agent’s performance, LIC offers bonus commissions and incentives:
- Club Membership Incentives
- Bonus Commission (based on total business volume)
- Herald Allowances (travel, promotional materials, etc.)
- Renewal Bonuses for persistency
Commission Example For a Jeevan Tarun policy with an annual premium of ₹30,000:
- Year 1 Commission (25%) = ₹7,500
- 2nd & 3rd Year (7.5%) = ₹2,250 per year
- 4th Year Onwards (5%) = ₹1,500 per year
- Over a 20-year term = Substantial cumulative earnings, especially with persistency bonuses and incentives
Factors Affecting Commission
- Policy Term & Premium Payment Term: Longer durations may increase overall commission value
- Premium Amount: Higher premiums yield higher absolute commissions
- Agent’s Club Status: Higher statuses (e.g., ZM Club, CM Club) attract more bonuses
- Persistency Ratio: Higher retention of policies boosts renewal income
Conclusion:
The commission chart for LIC Jeevan Tarun Plan 834 offers a lucrative earning opportunity for agents, especially when combined with renewal commissions and bonus incentives. By maintaining high service standards and persistence, LIC agents can build a sustainable and rewarding career while helping families secure their children’s future. Understanding the detailed structure enables agents to plan their sales strategies effectively and optimize earnings.
FAQ:
Q. What is the agent commission structure for LIC Jeevan Tarun (Plan 834)?
A. According to LIC’s official circular, the commission rates for agents selling Jeevan Tarun are as follows:
First Year Commission: 25% of the first-year premium (excluding taxes)
Renewal Commission: 2% from the second year onwards
Q. Is there a bonus commission for agents?
A. Yes. Agents may receive additional commissions or incentives based on performance, such as meeting certain sales targets or qualifying for club memberships. These bonuses are governed by LIC’s internal policies and can vary annually.
Q. What is the premium paying term (PPT) for Jeevan Tarun?
A. The premium paying term is flexible and depends on the child’s age at entry. Premiums are payable until the child turns 20, with the policy maturing at age 25. For example, if the child is 10 years old at entry, the PPT would be 10 years.
Q. Can agents sell Jeevan Tarun online and earn commissions?
A. LIC agents can sell policies through LIC’s digital platforms and are eligible for commissions on online sales, provided they are the servicing agents.
Q. Is Jeevan Tarun Plan 834 still available for sale?
A. No. LIC’s Jeevan Tarun (Plan No. 834) has been withdrawn and is no longer available for new sales. However, existing policies continue to be serviced as per the original terms.
Q. Where can agents find official commission details?
A. Agents can refer to LIC’s official circulars and commission charts for detailed information. These documents are typically available through LIC’s internal portals or can be obtained from branch offices.