LIC has reduced the first-year agent payout to 28% following a revision of the surrender value.

Banking & Finance

The Life Insurance Corporation of India (LIC) has reduced the first-year agent commission from 35% to 28% (including a bonus) after revising its surrender value norms. The commission has also decreased from 25% to 20% (without bonus).


      - The new surrender norms became effective from October 1, 2024.

      - The commission for renewal premiums has increased from 5% to 7.5%.

      - The minimum sum assured on the revised policies has been raised from ₹1 lakh to ₹2 lakhs.

Main Points:-   (i) The upper age limit for purchasing LIC's new endowment plan has been revised from 55 to 50 years.

      (ii) Premiums on life insurance products have increased by an average of 8-9%.

(iii) These modifications are in line with the Insurance Regulatory and Development Authority of India (IRDAI) master circular on life insurance products (Insurance Products Regulations, 2024) issued in June 2024.
About LIC

Chairperson: Siddhartha Mohanty
Headquarters: Mumbai
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