Q & A

Question:
How much discount I can expect from my LIC agent. I have come to know from one of my friend that he has bargained on his first premium for his first LIC premium. He had paid almost half of the actual premium. What do you offer.


Answer:
Discounts or Sharing of Commission from Agent is illegal in India under Section 41 of Insurance Act 1938 . This is quoted on each life insurance proposal form available in India.

No doubt everyone wants to save money and this is our right, but commission is the only insensitive to the agent for his services & hard work so when you are asking rebates they will always suggest you a plan in which they are getting higher commissions. And then this is very much possible, that he/she will not suggest you a plan that will be of your requirements.

Now a days there are so many other things you should demand from an agent.
That is

1. how much is he educated,
   
2. is he/she able to understand your actual needs,
3. does he/she have full knowledge of product
4. is he/she able to help you for premium deposits and other services

At last I would like to ask a simple question from the investor still willing to take discount on premium.

Let say I have paid to x% on your premium and I have not earned any thing from you now.
Will you give me back x% of your returns from LIC on maturity or death?
if your answer is no. WHY?

If you are asking discounts on premiums from insurance advisers, you are generating black money in the market.