With India’s aging population on the rise, senior citizen health insurance has become a rapidly growing sector. As more insurers roll out specialized products for citizens aged 60 years and above, insurance agents and advisors also benefit from attractive commission structures. So, see below senior citizen health insurance commission chart 2025
In 2025, leading insurance companies will offer higher commissions on senior health insurance plans due to:
- Higher premiums (due to increased health risks)
- Long-term policy benefits
- Add-ons like critical illness, domiciliary care, and pre-existing disease coverage
Why Do Senior Health Insurance Policies Have Higher Commissions?
Table of Contents
- Higher Premiums – Older individuals pose more health risks, which increases premiums.
- Longer Coverage Needs – Senior policies often require continuous follow-ups and renewals.
- More Value-added Services – Chronic illness, wellness support, and home care features.
- Customized Plan Structures – Plans require a deeper understanding by the agent to sell effectively.
Senior Citizen Health Insurance Commission Chart 2025:
| Insurance Company | Product Name (for Seniors) | Agent Commission (New Policy) | Renewal Commission | Special Notes |
|---|---|---|---|---|
| Star Health Insurance | Star Senior Citizens Red Carpet | 17% – 20% | 5% – 7.5% | No pre-policy medical test, wide agent base |
| Care Health Insurance | Care Freedom | 15% – 18% | 5% – 7.5% | Coverage for diabetes & hypertension |
| HDFC ERGO Health Insurance | Optima Senior | 14% – 17% | 5% – 7% | Pre-existing disease coverage from 3rd year |
| Niva Bupa Health Insurance | Senior First | 13% – 16% | 5% | Covers day 1 pre-existing illnesses (specific variant) |
| ManipalCigna Health Insurance | Prime Senior | 16% – 20% | 6% – 8% | Home care & post-hospital benefits |
| Aditya Birla Health Insurance | Activ Care | 14% – 17% | 5% – 7% | Offers HealthReturns™ rewards even for seniors |
Key Points for Agents:
Higher First-Year Commissions:
- Senior policies often yield commissions above 15% in the first year, which is higher than regular plans.
- Commissions increase with optional riders like critical illness, hospital cash, or top-up covers.
Renewal Commissions:
-
Range from 5% to 8%, which builds passive income for agents with consistent follow-ups.
IRDAI Regulations (2025 Update):
As per IRDAI guidelines:
- Maximum commission for health products is up to 20% of the premium.
- Renewals are capped at 7.5% (depending on the insurer and product type).
- Agents must comply with product-specific licensing and certification for senior products.
Benefits of Selling Senior Health Insurance for Agents
| Agent Benefit | Details |
|---|---|
| High Premium Policies | Higher age = higher premium = better income |
| More Dependable Renewals | Seniors rarely cancel policies, ensuring long-term income |
| Upsell Opportunities | Riders like OPD, Critical Illness, Top-up add to premium and commission |
| Customer Loyalty | Seniors value trust; higher referral potential |
| Growing Market | India’s 60+ population projected to reach 200 million by 2030 |
Example Calculation:
Example: A 65-year-old male buys a policy with ₹50,000 annual premium.
- Agent Commission (20%) = ₹10,000 in Year 1
- Renewal Commission (7.5%) = ₹3,750/year from Year 2 onward
- Add-ons (Critical Illness + Top-Up): Additional ₹10,000 premium = ₹2,000 more commission
Final Tips for Agents
- Understand pre-existing condition handling — most senior policies have tailored coverage.
- Highlight cashless claims network — seniors often choose insurers with accessible hospitals.
- Build a long-term relationship — these clients are high-retention, high-referral.
- Use digital tools — apps and online tracking are increasingly preferred even by senior customers.
Conclusion:
In 2025, senior citizen health insurance has emerged as a lucrative opportunity for insurance agents and advisors across India. With increasing demand for age-specific health coverage, the market offers attractive commissions (up to 20%), reliable renewals, and value-added sales potential. As insurers expand their product offerings with features like chronic care, HealthReturns™, and cashless hospitalization, agents who understand the senior segment can build a high-retention, high-income portfolio. By staying updated with IRDAI norms, customizing recommendations, and nurturing client relationships, agents can succeed both financially and professionally in this growing space.
FAQ:
Q. What is the average commission on senior citizen health insurance in 2025?
A. The average first-year commission ranges from 15% to 20%, depending on the insurer and policy type. Renewals offer 5% to 8%.
Q. Which company gives the highest commission for senior citizen plans?
A. As of 2025, Star Health Insurance and ManipalCigna Health Insurance typically offer the highest commission rates (up to 20%).
Q. Are commissions regulated by IRDAI?
A. Yes. IRDAI caps health insurance commissions, typically at 20% for new policies and 7.5% for renewals, depending on the product.
Q. Do agents earn more from senior policies than regular ones?
A. Generally, yes. Senior plans have higher premiums due to age-related risks, leading to higher absolute commission values.
Q. Are there specific certifications required to sell senior citizen health plans?
A. While general health insurance licensing suffices, insurers may require product-specific training or certifications for complex plans.
Q. Do senior policies include coverage for pre-existing conditions?
A. Most do, but with waiting periods of 1–4 years. Some plans (like Niva Bupa Senior First) offer coverage from Day 1 under certain terms.
Q. How can an agent increase their commission income?
A. By upselling add-ons like critical illness riders, hospital cash, and top-up plans, agents can increase the total premium and commission.
Q. Is there a high renewal rate for senior plans?
A. Yes. Seniors value health security and tend to renew consistently, providing agents with reliable annual income.
Q. What challenges do agents face with senior clients?
A. Challenges include medical underwriting, longer proposal processing, and higher claim frequency. However, strong service builds trust and loyalty.
Q. Which senior plans are best for chronic illness coverage?
A. Plans like Aditya Birla Activ Care, Care Freedom, and ManipalCigna Prime Senior offer dedicated chronic disease management.
Q. Can digital tools help agents sell senior insurance?
A. Absolutely. Mobile apps, quote generators, and policy comparison tools enhance presentation, credibility, and ease of conversion.
Q. Are there tax benefits for senior citizens under these plans?
A. Yes. Under Section 80D of the Income Tax Act, senior citizens can claim deductions up to ₹50,000 per year on premiums paid.