Lic Agent Benefits Review

Benefits of Lic Agent

Lic Agent Benefits are of two types they are Survival Benefits and Death Benefits. Survival Benefits include E.R.C (Eligibility for Renewal Commission), Gratuity, EMBG and Samvardan pension scheme. Death Benefits include H.R.C (Heriditory Renewal Commission), Gratuity, Term Insurance and Group Insurance. Complete information about Lic Agent Benefits, i.e., Survival Benefits and Death Benefits is given below.

Survival Benefits	Death Benefits
E.R.C	H.R.C
Gratuity	Gratuity
EMBG	Term Insurance
Samvardan pension	Group pension

Survival Benefits under Lic Agent Benefits

1. E.R.C (Eligibility for Renewal Commission)

• For E.R.C of 5 to 10 years – Minimum SA in force 2 Lakhs.
• For E.R.C of more than 10 years service – No Linkage with minimum SA(Sum Assured).
• Renewal Commission shall be paid to the agent if he is physically/mentally incapacitated and policies issued by him of not less than of 1 lakh SA and the service is minimum 2 years.

2. Gratuity

Gratuity under Lic Agent Benefits is given based on following conditions,

• Agent should have worked continuously for 15 years or more and is not below 60 years.
• Worked for 15 years or more but agency is terminated.
• Confirmed but died while an agency is in force.
• Agency is terminated on Physical or Mental Grounds.
• Once Gratuity is paid no further payment will be done even if he/she continues agency.
• Eligible Rate and Quantum are decided on Qualifying Years, Age and Qualifying RC in each Qualifying year.
• If the agents service is less than 15 years and he is eligible to receive the Gratuity, then the Actual Average will be taken.
• If an LIC agent has minimum 15 agency years, Lic gives GRATUITY of 2,00,000.

3. EMBG

EXEMPTED FROM MINIMUM BUSINESS

• 21 Years Continuous Service (OR)
• 15 Years Service and 55 Years age (OR)
• 15 Years Service with a Renewal Premium of Rs. 40,000 /- P.A.

4. Samvardhan pension scheme

The samvardhan pension scheme is started to assist the lic agents in creating a fairly large corpus during their productive year that can be used to give the pension in a structured way, after the accumulation period.

Eligibility:	service 1 year.
Annual commission:	Rs 1,00,000/-.
Age:	Minimum: 18 years completed. Maximum: 65 years completed.
Contribution:	Minimum 500/- per month and in multiples of 500/- thereafter.
Accumulation period:	Minimum age: 60 years. Maximum age: 75 years.
Minimum deferment period:	10 years.
Benefits payable:	A pension will be payable depending on the age on vesting. 25% of the corpus can be commuted.
Benefits on death:	Accumulated value of the member’s contribution will be paid to the nominee (or) pension for the spouse.

Death Benefits under Lic Agent Benefits

1. H.R.C (Hereditary Renewal Commission)

• Minimum Service: 2 Years from DOA.
• Minimum Business: 1 Lakh SA in force.
• In a case of the death of an agent, the commission payable to him shall be payable to the Nominee or Legal Heir of the Agent.

2. Gratuity

It is payable, for the Agent who dies while his agency is in force or he is physically or mentally incapacitated from carrying out his functions.

3. Term Insurance

Free term insurance under Lic Agent Benefits is payable in the event of death of a confirmed agent before 60 years of age provided among some other conditions:

• Agent was appointed before 50 years old.
• He must have completed at least three qualifying years.
• His agency was in force on the date of death.
• He holds an insurance policy for at least Rs. 5,000/- at the time of death(other than a temporary insurance policy).

4. Group pension

Group pension is also available under Lic Agent Benefits. More details are given in below table.

CATEGORY	DURATION OF AGENCY	INSURANCE COVER	PREMIUM
I	1 UPTO 3YEARS	50,000	150
II	> 3 TO 5 YEARS	1,00,000	300
III	> 5 TO 10 YEARS	3,00,000	900
IV	> 10 YEARS	5,00,000	1500

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