For decades, LIC has been India’s most trusted insurer, but in 2025 many new and experienced agents are leaning towards HDFC Life. Why? While LIC dominates in brand recognition and savings-plan commissions, HDFC Life offers better balance, stronger digital tools, and steady renewal income.
This article breaks down the commission differences and explains why agents increasingly prefer HDFC Life.
LIC Commission Structure (2025)
- Term Insurance: 25–30% first year.
- Savings/Endowment: 35–40% (highest in industry).
- ULIPs: 2–5%.
- Renewals: ~5–7%.
LIC agents earn big upfront commissions on traditional savings policies but lower on terms/renewals.
HDFC Life Commission Structure (2025)
- Term Insurance: 30–35% (higher than LIC).
- Savings/Endowment: 30–35%.
- ULIPs: 2–7% (upper range better than LIC).
- Renewals: ~7.5% (stronger than LIC).
HDFC Life agents earn balanced income across product categories, with steady renewal payouts and digital sales support.
Side-by-Side Comparison
| Category | LIC | HDFC Life |
|---|---|---|
| Term Plan | 25–30% | 30–35% |
| Savings/Endowment | 35–40% | 30–35% |
| ULIP | 2–5% | 2–7% |
| Renewal | 5–7% | 7.5% |
| Digital Tools | Basic | Advanced (apps, eKYC) |
| Growth Path | Strong in traditional |
Balanced + GA |
Why Agents Prefer HDFC Life
- Better Term Plan Commission → Higher % on protection policies.
- ULIP Edge → Higher ticket size + upper slab up to 7%.
- Stronger Renewals → 7.5% creates long-term passive income.
- Digital Advantage → Faster issuance, online policy tracking, real-time commissions.
- GA Model Support → Overrides and MDRT-friendly growth path.
Conclusion
While LIC remains unbeatable for savings-plan commissions, HDFC Life offers a more balanced, modern, and agent-friendly commission structure in 2025. For agents focused on renewals, digital tools, and scaling income, HDFC Life is becoming the preferred choice.
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