Insurance Agent Commission Structure
It is your right to know the life insurance agent commission rate as only then you will know that whether the agent is providing you with a correct perspective or not. Check why insurance agents lures you to invest in insurance plans with longer term periods.
Salient aspects of the commission structure is that it is more when the term period is more and thus you have to see your own requirements rather than the insurance agent justifications. These rates of agents commission is given as per IRDA’s (Non-Linked Insurance Products) Regulations 2013 guidelines.
How Much Commission Insurance Agent Makes?
Let us assume that the term of the plan is 20 yrs, Product-Endowment Plan and Yearly Premium say is Rs 1,00,000 and one will realise that agent gets a commission of Rs 1.85 Lakh spread over 20 Years.
This is the reason that an agent will ask you to go for longer duration as in reality he will not let you know that his commission is the highest when you go with him for the longest period.
Thus we always suggest our clients to go for term insurance plan as it is best as compared to investment linked insurance.