Commission for LIC Agent
Discover comprehensive details on LIC agent commissions, covering payout structures, commission rates, and benefits for both new and renewal policies. Empower your LIC career with valuable insights. Learn about LIC agent commission structures, rates, and payout plans for new and renewal policies. Understand how LIC commissions work and how agents can maximize their earnings while building a successful career in life insurance.
Imagine this: An insurance advisor manages to generate 1 crore in business with an annual premium of 5 lacs. With a commission rate of 35%, the advisor earns an impressive 1.75 lacs as compensation for the services provided and those to be rendered in the future to the policyholder.
Now, let’s take it a step further. In the following year, the advisor doubles their efforts and brings in 2 crore worth of business, with a total annual premium of 10 lacs. The commission income for the second year now skyrockets to 3.87 lacs!
Surprised? It’s entirely possible! Here's how:
In the second year, the advisor not only earns commission on the new business brought in (35% of 10 lacs = 3.5 lacs), but also enjoys a renewal commission for the business done in the previous year. The renewal commission rate, typically 7.5%, on the 5 lacs premium from the first year adds an additional 37,500 to their earnings. The result? A cumulative income of 3.87 lacs for the second year’s hard work and continued service to policyholders.
But what happens if the advisor continues to build on this success? Let’s assume the advisor doubles the business every year for 10 years. Do you know what their income would look like at the end of that period?
After 10 years of consistent effort, the advisor would have generated a total premium collection of 2.75 crore! With the renewal commission rate set at 5%, this amounts to an astounding 13.75 lacs in renewal commission—per year! That’s a monthly income of 1,14,583 for as long as the policies remain in force.
What’s even more impressive is that this income represents the power of both hard work and the long-term benefits of renewal commissions. With consistent growth and excellent service, an advisor can secure a steady and significant income stream, ensuring a financially rewarding career in the insurance industry.
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