LIC New commission rates October 2024

The Life Insurance Corporation of India (LIC) has launched a new policy in October 2024, aimed at catering to the evolving needs of policyholders and agents alike. If you’re looking for the most up-to-date information on LIC’s new policy and commission rates, this post will break down all the essential details.

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LIC’s commission rates on new insurance policies vary based on the type of policy (e.g., term, endowment, ULIPs), the policy tenure, and the number of years the premium is paid. The commission is generally divided into two types:

  1. First-Year Commission: Higher in the first year when the policy is sold.
  2. Renewal Commission: Paid on premiums collected after the first year.

General Commission Rates (Indicative):

  • Endowment Plans:

    • First-Year Commission: Typically 25% to 35% of the premium paid, depending on the policy’s tenure and the term of premium payments.
    • Renewal Commission: Around 5% to 7.5% on premiums paid in subsequent years.
  • Term Plans:

    • First-Year Commission: Lower than endowment policies, generally between 10% to 20%.
    • Renewal Commission: 2% to 5% in later years.
  • Single Premium Policies:

    • The commission on single premium policies is much lower, typically around 2%.
  • ULIP (Unit Linked Insurance Plans):

    • The first-year commission can range from 1% to 7%, while renewal commissions are relatively low or even non-existent in some cases.

LIC Commission Rates for October 2024

LIC agents earn commissions based on the type of policy sold, the tenure, and premium payment frequency. Below is a general overview of the updated LIC commission structure for the new October 2024 policy:

  1. First-Year Commission
    Agents can earn a commission of up to 25% of the first-year premium. This percentage may vary depending on the policy tenure and premium payment term.
  2. Renewal Commission
    For policies renewed in the subsequent years, agents earn a 5% to 7.5% commission. Longer policy tenures generally offer better renewal commissions.
  3. Bonus Commission
    Depending on performance and the total business generated, LIC may offer agents bonus commissions on certain policies, adding to their overall earnings.

Final Thoughts

LIC’s new policy introduced in October 2024 is tailored to meet the needs of today’s policyholders and agents. The blend of savings and life insurance, along with flexible tenure and premium options, makes it an attractive choice. For agents, the updated commission rates ensure profitable returns while helping clients secure their futures.

Whether you’re a potential policyholder looking for financial security or an agent seeking new business opportunities, this policy and its benefits are worth exploring.

Stay informed and make the most of this new opportunity by contacting your nearest LIC office or agent today!

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