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Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
Commission
Definition
The commission is the incentive that the insurance agents or the sales representative receive after selling the insurance policy, be it life or non-life.
Description
The commission is paid as a percentage of the premium under the insurance policies. Paying commission is like paying rewards to the agents who made efforts to convert the sales.
The commission is paid only once a year, when the premium is paid annually.
The commission under the policy depends on two factors that include: Type of the policy Term of the policy
The commission is also computed based on these terms:
- For 15 years, the maximum commission an agent gets is approximately 25%.
- After the 4th year, the commission is cut down to 5% approximately.
Commission distribution is based on these type of the policies:
| Type of Premium Payment | Commission |
| Single Premium Payment Policy | 2%of individual life product 7.5% for individual pure risk products. 2% for immediate annuity and deferred annuity products 5% for group-pure risk products. |
| Pure Risk Regular Premium | 40% for the first year 10% for every renewal premium |
| Investment Based Regular Premium Product | 15% for the first 5 years. Over 12 years the commission will be 35%. 7.5% renewal premium per annum. 42.5% for the 12th year onwards. |
Example:
Puneet is a life insurance agent who sold a regular premium term plan to Rahul. The premium under the term plan paid by Rahul was Rs.10,000/- excluding GST. The commission for the first year earned by Puneet will be 40% of Rs.10,000/- which will be Rs.4,000/-. The renewal commission will be 10% issued until the policy is renewed.
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Newly Added Terms
Most Appreciated Terms
Buy ₹1 Crore Term Insurance at Just ₹508/month*
ABSLI Salaried Term Plan
Exclusively For Salaried Individuals
4 Plan Options
Life Cover upto 70 years
Optional Accelerated Critical Illness benefit
Inbuilt Terminal Illness Benefit
Life Cover
₹1 crore
Premium:
₹508/month*
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ABSLI Salaried Term Plan (UIN:109N141V03) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6100/- ( which is ₹ 508.33/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
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