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

Banking & Finance | Dated: 24 Oct 2024

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).

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

LIC recently reduced the first-year agent payout to what percentage?

Correct Answer: 28%

🚀 Quick Recap:

About LIC

  • Chairperson: Siddhartha Mohanty
  • Headquarters: Mumbai