Max Life and LIC are the highest commission paying life insurers in India as their commission outgo is in excess of 5.5% of their total premium income, shows LIC's draft IPO prospectus.
Max Life pays the highest commission to agents. The private insurer has disbursed 6.5% of its total premium income to its agents as commission in FY 2021. LIC comes in next with commissions amounting to 5.5% of total premium.
In FY 2021, Max Life and LIC have collected total premium of Rs. 19,020 crore and Rs. 4,03,290 crore respectively. This implies that Max Life has paid Rs. 1,236 crore and LIC disbursed Rs. 22,180 crore as commission in the previous financial year.
Among the top five private players, SBI Life pays the least percentage of premium as commission at 3.5% (FY2021). Agents of HDFC Life, ICICI Prudential Life and Bajaj Allianz Life have received commission of 4.4%, 4.2% and 4.8% respectively in FY 2021.
Comparing the commission payment with new business premium (FY 2021) shows that Max Life has the highest commission ratio at 18%, followed by LIC (12%) and ICICI Prudential Life (11.3%).
The high commission payouts reflect the high dependence of life insurers on individual agents. In the draft IPO prospectus, LIC states that its individual agents’ network contributed approximately 94% of its new business premium in FY 2021.
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FAQs
Max Life pays the highest commission to agents. The private insurer has disbursed 6.5% of its total premium income to its agents as commission in FY 2021. LIC comes in next with commissions amounting to 5.5% of total premium.
What type of life insurance pays highest commission? ›
Insurance agents receive the highest commission rates for whole life insurance plans, often more than 100% of the total premiums for the policy's first year. The exact percentage depends on the age of the policyholder.
Which insurance company pays the highest commission? ›
The commission rate also decreases as the policy term increases. For example, an agent may earn 35% commission on a 10-year term plan, but only 10% commission on a 30-year term plan. Some of the companies that offer high commission rates to their agents are HDFC Life, Max Life, ICICI Prudential, and Kotak Mahindra.
What insurance pays the most commission? ›
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
How much is the lic agent commission chart? ›
The agent is paid 7.5 per cent of the amount paid by the policy holders (under standard tables and terms) as the second as well as the third year's premiums and continues to be paid renewal commission of 5% on every year's premium paid from the fourth year onwards.
Who pays the best commission? ›
These are a few of the top sales jobs with high commission:
- Digital sales. ...
- Insurance sales representative. ...
- Wholesales representatives. ...
- Pharmaceutical sales. ...
- Sales consultant. ...
- Medical devices sales representative. ...
- Real estate agent. ...
- Software sales.
Meet the world's highest earning insurance agent
- Meet the world's highest earning insurance agent.
- Gideon du Plessis failed in the 10th standard and never went to college. ...
- A record he has maintained over the last 12-14 years, selling 700 policies yearly. ...
- What is Plessis' secret of success?
Top life insurance companies
| Company | Best for | J.D. Power Score in 2023 U.S. Individual Life Insurance Study |
|---|
| Guardian | Life insurance coverage without a medical exam | 784/1,000 |
| Mass Mutual | Whole life insurance | 809/1,000 |
| Mutual of Omaha | Digital accessibility | 805/1,000 |
| Nationwide | Customer satisfaction | 840/1,000 |
3 more rowsLife Insurance Corporation of India employees rate the overall compensation and benefits package 4.3/5 stars. What is the highest salary at Life Insurance Corporation of India? The highest-paying job at Life Insurance Corporation of India is a Senior Software Architect with a salary of ₹49,86,050 per year (estimate).
Can life insurance agents make millions? ›
Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.
Best LIC Policy with High Returns
| LIC Policies | Entry Age | Sum Assured |
|---|
| LIC Nivesh Plus | 90 days- 70 years | 1.25- 10 times the single premium |
| LIC Index Plus | 90 days- 60 years | 7 - 10 times the annualized premium |
| LIC SIIP Plan | 90 days (completed)-65 years | 7 to 10 times the annual premium |
| LIC New Jeevan Shanti | 30 years-79 years | NA |
1 more rowHistorical LIC Bonus Rates for LIC New Endowment Plan 914
| Policy Term | Bonus Rates (Per 1000/- Sum Assured) in the last 5 years |
|---|
| 2020-21 | 2019-20 |
| 12 to 15 years | 35 | 35 |
| 16 to 20 years | 39 | 39 |
| More than 20 years | 45 | 45 |
How To Surrender LIC Policy?
- Original policy bond documents.
- Request for surrender value payment.
- LIC Surrender form- form 5074.
- LIC NEFT form.
- Bank account details.
- Original ID proof like an Aadhar card, PAN card or driving license.
- A cancelled cheque.
- Hand-written letter to LIC stating the reason for discontinuing.
For every policy sold, the insurance agent earns a large upfront commission. This rate can range from 40% to 100% of the first-year premium, the amount the policyholder pays for the policy. The rate is set by the insurance company, and each state has its own commission limits.
How much commission can you make on life insurance? ›
Commission structures vary by policy and company. But typically, life insurance agents receive as commission 60% to 80% of the premiums you pay in the first year. They collect smaller commissions in subsequent years. Added up, 5% to 10% of all the premiums you pay over the life of the policy could go to commissions.
What is the highest salary in life insurance company? ›
The highest-paying job at Life Insurance Corporation of India is a Senior Software Architect with a salary of ₹49,70,800 per year (estimate). The lowest-paying job at Life Insurance Corporation of India is a Supervisor with a salary of ₹1,38,201 per year (estimate).
