When entering the insurance business with HDFC Life, agents often face a crucial choice: should they register as an Individual Agent or under a General Agency (GA) license? Both models have unique commission structures, advantages, and long-term income potential.
In 2025, HDFC Life has aligned its payouts with IRDAI norms but continues to offer extra benefits for GA partners who manage a team. This article compares the two paths to help new and experienced agents decide which model pays more.
Individual Agent Model (Direct Code)
- Who can apply: Anyone who passes the IRDAI exam and completes HDFC Life onboarding.
- How income works:
- Earns first-year commission directly (30–35% for term/savings, 2–7% for ULIPs).
- Earns renewal commission (7.5% for term/savings, 1–2% for ULIPs/pension).
- Best for: Agents starting solo, part-time advisors, or those who want complete ownership of clients.
Example: A term plan of ₹30,000 annual premium with 35% commission = ₹10,500 first-year income, plus 7.5% (~₹2,250) annually from year two onwards.
General Agency (GA) Model
- Who can apply: Experienced agents or entrepreneurs who want to build a team of sub-agents.
- How income works:
- GA earns their own agent commission (same as above).
- Plus an override commission of 3–5% on the business written by their recruited sub-agents.
- Renewal overrides also apply, creating compounding passive income.
- Best for: Those who want to scale, manage a team, and tap into HDFC Life’s recruitment incentives.
Example: If a GA has 5 sub-agents, each bringing ₹5 lakh annual premium, that’s ₹25 lakh in premium volume. At a 3% override, the GA earns ₹75,000 extra in addition to their own policies.
Income Comparison: Individual vs GA (2025)
| Aspect | Individual Agent |
General Agency (GA) |
|---|---|---|
| Entry Requirement | IRDAI exam + HDFC license | Experience + GA license |
| First-Year Commission | 30–35% (term/savings) |
Same as Individual |
| Renewal Commission | 7.5% (term/savings) |
Same + Overrides |
| Override Income | ❌ None | ✅ 3–5% team prod. |
| Long-Term Potential | Stable, solo income | Scalable, team wealth |
Which Pays More in 2025?
- Individual Agents earn faster in the short term with simple operations.
- General Agencies build higher long-term wealth, since overrides and renewal bonuses multiply as the team grows.
- HDFC Life also prioritizes GA partners for MDRT club entries and special rewards, making GA the more lucrative option if scaling is your goal.
Conclusion
If you are just starting out, the Individual Agent model is perfect to learn the business and build initial clients. But if you aim for long-term passive income and leadership, becoming a General Agency with HDFC Life pays significantly more in the 2025 commission structure.
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Want to know whether GA or Individual Agent is right for you? Chat with us directly for guidance.
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