For most insurance agents, the real wealth comes not from first-year commissions but from the steady renewal commissions that keep paying year after year. In 2025, HDFC Life continues to follow IRDAI’s structured rules on renewal payouts, with special bonuses for agents and general agency (GA) partners who maintain high persistency.
This article explains how renewal commissions work, what percentage agents can expect across different plans, and what new updates apply in 2025.
What Are Renewal Commissions?
- Renewal commission is the income an agent earns every time a customer pays the second-year premium (and beyond).
- It is designed to encourage agents to sell long-term policies and keep them active.
- Unlike one-time first-year commissions, renewal payouts provide a stable stream of passive income as long as policies remain in force.
Renewal Commission Rates at HDFC Life (2025)
| Product Type |
Renewal Commission |
Special Notes |
|---|---|---|
| Term Insurance | ~7.5% | Consistent from 2nd year |
| ULIPs | 1–2% | Varies; lower but steady |
| Pension Plans | 1–2% | Long duration renewals |
| Savings | ~7.5% | Better persistency rewards |
| Microinsurance | ~5% | High volume, small tickets |
2025 Updates to Renewal Rules
- Persistency Bonuses:
- Agents with 13th month persistency above 80% earn extra bonuses on renewals.
- GA partners with strong persistency scores earn override income from their team’s renewal business.
- Digital Tracking:
- Renewal credits are now visible in real-time on the HDFC Life agent portal, helping agents plan monthly income.
- MDRT Advantage:
- MDRT qualifiers receive additional recognition and support, making renewals more attractive.
Why Renewal Commissions Matter for Agents
- They create predictable, passive income that grows every year as agents build larger client bases.
- They encourage long-term client relationships, since agents benefit when policies stay active.
- Renewal income also makes agency business transferable and scalable under GA models.
Conclusion
HDFC Life’s renewal commission rules for 2025 continue to reward policy persistency and long-term engagement. While first-year commissions give an immediate boost, renewals remain the foundation for building lasting income as an agent.
Agents who focus on customer retention, quality of business, and persistency bonuses can see their renewal income rival (or even exceed) their first-year earnings over time.
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