Life insurance agency is an
unique career. It is monetarily rewarding and soul satisfying too.
The commodity that a life insurance agent sells is unique - you
sell and service financial security and hence the pattern of
remuneration for the same is also unique. Life insurance profession
is the “best paid hard work”. The harder you work the more
commission you get. Moreover the sale of life insurance gives
repeated commission paymentsfor one sale and what is more, they
continue even after the agent resigns or dies - provided he has the
required business in force as per rules.
1. First Commission on
sales : Under standard tables and terms you
are paid 1st year’s commission of 25% of the first
year’s premium
paid by the policy holders.
2. Bonus Commission : You are
entitled to bonus commission at the rate of 40% of the eligible
first year commission provided
you fulfil certain
requirements as to total first year’s premium secured and number of
lives you have insured in your agency-year.
3. Renewal Commission : 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. Renewal commission is payable on renewal premium. Hence,
you should ensure that your client keeps
the policy in force. If
you remind him to pay premiums, you will be rendering a good
service to him.
4. Increasing Income : With the
above recurring income-feature of the insurance compensation your
income goes on steadily increasing every year. Each succeeding
year’s new sales add to the renewal commission on the previous
year’s business. Your renewal commission will grow faster every
year, if with increasing expertise, you do more and more business
as years roll by.
5. Guaranteed
Income : In the event of termination of agency
because of non-performance, any time after five agency years
but
before completion of 10
agency years, the renewal commission continues to be
payableprovided you had nominal business of at least Rs. 2 lakhs in
force one year before cessation of agency. This condition is waived
in the event of cessation after the agent has worked for ten years
or more.
6. Hereditary
Commission : In case of agent’s death while
his agency subsists, after agency was in force for two years or
over,
renewal commission will
continue to be payable to his heirs or nominee provided there was a
business of not less than Rs. 1 lakh in
force at the time of
death.
7.Retirement Benefit :
Gratuity upto a maximum of Rs. 2,00,000/- is payable under Schedule
VI of the (Agents) Rules,
1972 provided the agent has
completed the business guarantee for at least 15 years called as
“qualifying years”.
8. Term Insurance -
free family protection : Free term insurance is payable under
Schedule VI of the (Agents) Rules,
1972 in the event of death of a
confirmed agent before age 60 provided among other conditions : (a)
he was appointed before
age 50 (b) he has completed at
least 3 “qualifying years” (c) his agency was in force on the date
of death, and (a) he holds an
insurance policy (other than a
temporary insurance policy) for at least Rs. 5,000/- at the time of
death.
Fringe
Benefits:
Being a member of the club
carries a good deal of prestige as it provides concrete evidence in
the eyes of the insuring public that you are working with a spirit
of devotion, dedication and professionalism in serving the insuring
public. It also entitles you to various fringe benefits according
to the membership of different clubs, as following
–
1. Well designed letter heads,
envelopes and visiting cards.
2. Beautiful badges at the time
of their entry and prestigious certificates
3. Attendance at club
conventions.
4. Sales promotional gift
items.
· C.M.’s Club — Rs.
3000/-
· Z.M.’s Club — Rs.
2000/-
· D.M.’s Club — Rs.
1000/-
· B.M.’s Club — Rs.
500/-
5. Telephone expenses - Rental
and/or call charges for mobile / land line
phones
C.M.’s Club :- Rs. 6000 per
year
Z.M.’s Club :- Rs. 4000 per
year
D.M.’s Club :- Rs. 2400 per
year
B.M.’s Club :- Rs. 1800 per
year
6. Office allowances - 50% of
actual expenses or 7.5% of total commission (F.Y.C. + R.C.) earned
by the agent in the preceding financial year Or Rs. 35,000/-
whichever is less.
7. C.M.’s Club members are
entitled for advance for laptop/ personal computer - full purchase
price or Rs. 1 lakh or previous years renewal commission whichever
is the least, repayable in 60 monthly instalments. The advance is
interest-bearing.
8. Loan at concessional rate of
interest for purchase of house, flat, building or premises for
agent’s office or repairs thereof.
I MYSELF DECIDE
MY AREA AND ACTIVITIES
