EARNINGS
LIC provides lucrative remuneration to its agents, as agents are the backbone of LIC and helped LIC to grow immensely over the years.
First year commission - upto 35% of 1st year Premium
Renewal commission- upto 7.5% (2nd year and 3rd year).
Renewal commission - upto 5% of 4th year onwards
For single premium policies - upto 2%
For example:
Agent sells a policy to a customer ( premium -Rs 50,000/- annnually, premium paying term- 20 years), then the agent will get
1st year- 35% of 50000 = 17500/-
2nd year- 7.5% of 50000 = 3750/-
3rd year- 7.5% of 50000 = 3750/-
(4th year to 20th year)- 5% of 50000 = 2500/- (for next 17 years i.e., 4th year to 20th year)
Total commission = {17500 + 3750+ 3750 + (2500 x 17)} = Rs 67500/-
