Few major changes are going to happen in Indian life insurance sector from October 1, 2013, especially in traditional policies like Endowment Plans, money-back plans & even ULIP’s.
You will surely have a Life Insurance Corporation (LIC) policy or / any other private sector traditional plans or / might buy them in coming times.
Now agents commissions is linked to the premium paying tenure.
Earlier a lot of agents used to sell the policies which had higher maturity tenure, But, limited premium paying tenure (such as 30 years policy with 10 years premium payment) .
In case of regular premium insurance policies, a policy with a premium paying term (PPT) of five (5) years will not pay more than 15 % in the first year. Products with PPT of 12 years or more will have first year commissions up to 35 % in case the company has completed 10 (Ten) years of existence and 40 % for the company in business for less than 10 years.
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