There is a huge misconception in the minds of people regarding LIC agent commission. Last week I had a meeting in Tata Primanti Sector 75, Gurgaon with a exporter of Indian handicrafts and other items. The meeting went well. The gentlemen got all his queries answered and was quite impressed by the way I explained the insurance concept to him.
And confessed that he had called two there’s people as well to discuss insurances but now he sees no use. Though he clearly said he may consider to buy life insurance from me now or later but surely he had all his doubts etc. Cleared regarding kind feedback insurance.
Which policy he wanted?
He wanted 2 crore to be accumulated as the maturity amount and was willing to spend 20000 per month which is a good amount to achieve that goal suggested Jeevan Labh. Everything was fine till the time he asked what would be the commission sharing or cash back he can get on the policy.
This statement out me off like anything. I mean you are doing a investment securing your family in long run and also getting a huge maturity and then also you are worried about the 50000 60000 thousand which is no way yours and is the earning if the advisor from his employer. I mean what’s the point in discussing all the insurance concept etc when you want to decide the plan as per the commission sharing you get.
Honest LIC Agent
I am not against spending money on getting a client at times marketing and other costs are too high and no lead converts in free. The amount spent is well understood. But this commission sharing this is like day light robbery. People shamelessly ask for sharing the earnings…i know this is not new or not something that is going to stop soon but the way it has affected the link Fe insurance market is huge.
Small time agents give out all commissions and take just a small percentage as selling insurance is not their main business. They sell policy which get them a commission of 10000, they are willing to share 9000 with the policy buyer. The policy buyer need to understand that if they continue asking for sharing of commissions they will get shitty advises, no services, etc.the worst thing a agent can do to you is get you a 25 or 30 year policy which is not as per your financial goals or requirement just because it will get more commission which in turn will allow him to pass on to you.
Policy holder loses
So ultimately the loses is the policy holder. To coming back to the incident, I clearly told him I do not work like this. As such the commission’s are being paid by LIC to their agent. I cannot… In fact will not share anything. The person just said, “ok fine” allow me few days and I will get back to you. i know I have lost the policy and he will not call me back. But I am equally sure the agent who will share his commission will not be selling him a good policy.
Good luck Mr. with mediocre insurance advisor and a policy that you don’t need (that too at a premium which no way justifies he policy requirement).i am hopefully that I will keep getting more clients who value the advisors experience and are not penny wise pound foolish.
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