Insurance agents in India often ask: “Which type of policy gives me the highest commission?” In 2025, the answer depends on whether you prioritize high commission percentage, high ticket size, or long-term renewals.
The three most common categories — Term Plans, ULIPs, and Savings/Endowment — each reward agents differently. Let’s break it down.
Term Plans — High % Commission, Lower Ticket Size
- First-Year Commission (2025): ~30–35%.
- Renewals: ~7.5%.
- Premiums: Typically ₹15,000–₹40,000/year.
- Agent Income Example: ₹25,000 premium × 35% = ₹8,750 first-year income + ~₹1,875 renewal yearly.
Best for: Agents targeting mass market clients who want affordable protection.
ULIPs — Lower %, Higher Ticket Size
- First-Year Commission (2025): 2–7%.
- Renewals: 1–2%.
- Premiums: Often ₹1.5–₹5 lakh/year for HNI clients.
- Agent Income Example: ₹2 lakh premium × 5% = ₹10,000 first-year income + ₹2,000/year renewal.
Best for: Agents serving wealthy clients who want insurance + investment.
Savings & Endowment Plans — High % + Good Persistency
- First-Year Commission (2025): 30–35%.
- Renewals: ~7.5%.
- Premiums: ₹40,000–₹1 lakh/year.
- Agent Income Example: ₹50,000 premium × 35% = ₹17,500 upfront + ₹3,750/year renewal.
Best for: Agents building long-term family savings clients with stable renewals.
Commission Comparison Table (2025)
| Plan | 1st Yr Comm | Renewal | Premium | Earnings Ex. |
|---|---|---|---|---|
| Term | 30–35% | 7.5% | ₹15k–₹40k | ₹8.7k + ₹1.8k/yr |
| ULIPs | 2–7% | 1–2% | ₹1.5L–₹5L | ₹10k + ₹2k/yr |
| Savings / Endowment | 30–35% | 7.5% | ₹40k–₹1L | ₹17.5k + ₹3.7k/yr |
Which Pays More in 2025?
- Highest % Commission: Term & Savings Plans (30–35%).
- Highest Absolute Payout: ULIPs (due to large ticket size).
- Best Renewal Income: Term & Savings (7.5%).
The smartest agents mix all three — term for high %, savings for renewals, and ULIPs for HNI clients.
Conclusion
There’s no single “winner.” In 2025, agents earn the most by balancing all plan types:
- Term Plans for fast % income.
- Savings Plans for steady renewals.
- ULIPs for high-ticket payouts.
The ideal strategy is to match products with client needs while maximizing commission diversity.
📊 Term, ULIP, or Savings?
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