Benefits of Becoming an LIC Insurance Advisor

The work of an insurance advisor may be challenging, but it is equally rewarding. With consistent effort and dedication, you can achieve significant success. Here are the key benefits of pursuing a career as an LIC agent:

1. Commission & Renewal Commission

  • First-Year Commission:
    Earn a commission of 20% on the first-year premium paid by policyholders under standard terms.
  • Bonus Commission:
    You can receive a bonus commission of 40% on the eligible first-year commission, provided you meet specific targets related to the number of lives insured and the total premium secured during the agency year.
  • Renewal Commission:
    Enjoy long-term income through renewal commissions:
    • 7.5% on the 2nd and 3rd year premiums
    • 5% from the 4th year onwards
      This is a recurring income, so it’s in your interest to help clients keep their policies active by reminding them of premium due dates.

2. Hereditary Commission

In the unfortunate event of the agent’s death (after at least two years in service), the renewal commission continues to be paid to the nominee or legal heirs, provided there was a minimum of Rs. 1 lakh in-force business at the time of death.

3. Guaranteed Income Benefit

If your agency is terminated after 5 years but before 10 years of service due to non-performance, you still receive renewal commission—provided you had a minimum of Rs. 2 lakhs in-force business one year prior.
This condition is waived if you’ve completed 10 or more years of agency service.

4. Increasing Income Potential

As you gain experience and expand your client base, your renewal commissions grow year after year. Each new policy adds to your ongoing income, creating a compounding effect that builds a stable and rising income stream over time.

5. Retirement Benefit

LIC offers gratuity up to Rs. 2,00,000 under Schedule VI of the Agents Rules, 1972, for agents who have completed at least 15 qualifying years of business.

6. Term Insurance Benefit

LIC provides free family protection through term insurance for confirmed agents, subject to the following conditions:

  • Appointed before age 50
  • Completed at least 3 qualifying years
  • Agency was active at the time of death
  • Held an LIC policy (other than temporary) of at least Rs. 5,000

7. Club Membership Benefits

Membership in various LIC clubs is a mark of professional excellence and brings prestige along with additional perks. Based on your performance, you may qualify for:

  • Corporate Club
  • Chairman’s Club
  • Zonal Manager’s Club
  • Divisional Manager’s Club
  • Branch Manager’s Club

These clubs offer various incentives and recognition, reflecting your dedication and high standards in client service.

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