PLI Agent Commission

Under the available PLI incentive structure, agents can earn a first-year incentive ranging from 4% to 20% of the first-year premium, along with a 1% renewal incentive on premiums received from the 13th month onwards.

PLI agent commission structure

The PLI agent commission depends mainly on the policy category and its premium-paying term. For regular Postal Life Insurance policies such as Endowment Assurance, Whole Life Assurance, Convertible Whole Life Assurance, Yugal Suraksha and Children policies, the first-year incentive increases with the premium-paying period.

• Up to 15 years: 4% of the first-year premium

• More than 15 years and up to 25 years: 10% of the first-year premium

• More than 25 years: 20% of the first-year premium

• Renewal premium: 1% from the 13th month onwards

For Anticipated Endowment Assurance (money-back) policies, the incentive structure is different, with the available structure providing 5% for terms up to 15 years and 7% for longer terms. The Anticipated Endowment Assurance is a life insurance policy where you get the returns regularly (interval benefits) as per the schedule fixed for the policy term.

How to Use India Post PLI Agents Portal?

If you are a registered PLI agent, the India Post PLI Agent Portal will allow login and access of the account as per the procedure mentioned below:

Step 1: Go to the India Post PLI Agent Portal website.

Step 2: Log in using the username, password and CAPTCHA displayed on the screen.

Step 3: Click on “Login”. Verify the details before accessing your agent account.

Step 4: Use the dashboard to manage available PLI Agent and policy-related services.

Note: As a new user, select Register and complete the required details to activate your portal access. If you are an existing user and have forgotten the Password, click “Forgot Password” and follow the instructions to reset it.

How is PLI agent commission calculated?

PLI commission is paid as a percentage of premiums received, not on sum assured. For instance, on an eligible PLI policy which has a yearly premium of Rs 35,400, we would pay a first-year incentive of 20% of 35,400, which is 7,080. 1% renewal incentive from the 13th month is 354 on the same yearly premium of 35,400. The actual incentive can be conditional on the premium level, policy type, premium-paying term and actually received premium payments.

The actual incentive can therefore vary depending on the premium amount, policy type, premium-paying term and premium payments received.

• First-year incentive: Premiums paid over the first 12 months.

• Renewal incentive: For premiums received from the 13th month.

• Higher first-year rates: Available for longer premium paying periods for regular PLI policies.

For example, ₹35,400 annual premium at 20% = ₹7,080 first-year incentive

What is the Incentive Structure for Agents and Field Officers of PLI & RPLI?

The incentive structure for PLI and RPLI agents is based on the business they generate as well as the premiums they receive. Under the structure mentioned in the referenced 2009 order:

PLI Agents/Field Officers: These individuals got 2% as a commission from the collected renewal premiums, which was added to the commission earned for business they brought on board of existing commission.

RPLI Agents/Sales Force: These agents received 10% as a commission of the first-year premiums and 2.5% of the renewal premiums collected for eligible RPLI policies.

Group Leaders/Entrustees: If they collected premiums from 1,000 or more eligible RPLI policies, 1.5 additional per cent commission was given to them.

Note: These were the rates prevailing under the 2009 order actually. PLI/RPLI have since brought in fresh incentive schemes, so agents must get their latest commission rates from the Posts Department circulars or PLI Directorate circulars, whichever applies.

What is the PLI Agent Commission for Renewal Premiums?

A PLI agent is eligible for ongoing incentives whenever the policyholder pays the renewal premium. Premiums received from the 13th month onward are considered renewal premiums, and the PLI agent will receive a 1% renewal incentive for these.

Earnings of the agent aren't limited to the first year after a policy is procured. In fact, the agent can earn renewal incentives each month the policyholder continues to make the premium payments as long as the rules apply.

• Renewal incentive rate: 1%

• Applicable from: 13th month onwards

• Calculation: 1% of the eligible renewal premium received

• Purpose: Rewards agents for continuing policy servicing and premium collection

PLI vs RPLI Agent Commission: Which is better?

PLI and Rural Postal Life Insurance (RPLI) have different incentive structures. RPLI generally provides a higher percentage for both first-year and renewal premiums. Under the referenced structure, RPLI agents receive 10% on premiums received during the first 12 months and 2.5% from the 13th month onwards.

• PLI first-year incentive: 4%–20%, depending on policy category and term

• PLI renewal incentive: 1%

• RPLI first-year incentive: 10%

• RPLI renewal incentive: 2.5%

How can PLI agents check their details?

Only PLI agents who have been registered can view their account details by logging in to the PLI Agent Portal of India Post using their username and password. On this portal, they also find links for registration and password recovery.

Possibility exists for policyholders to locate the right salesperson either by searching for agents or by submitting an agent request via the PLI Customer Portal. Eligibility, incentives and other rules are subject to change, and agents are supposed to take a look at the latest instructions issued by the Department of Posts at the time for the most up-to-date information.

Agent Login: To access the account, use your registered login credentials.

Password Recovery: If you have forgotten your password, then you reset through your portal.

Agent Search: If the customer does not want to visit the PLI agents directly, they may choose to look up registered agents.

Agent Request: If the policyholder needs an agent, he may get in touch with one by requesting the service.

Latest Updates: Policyholders can check for the latest Department of Posts circulars through these updates for revised rules and incentives.

While checking policy details, agents can also help customers understand other protection options, such as term insurance, when their coverage requirements change.

Summing up

Agent commission of PLI is based on the type of policy, period for payment of premium and the premium received. Incentive slab for Regular PLI policies is 4%-20%, and for renewal premiums is 1%. The knowledge about these slabs enables the agents to forecast their income accurately and as a result, to develop their PLI business.

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