Passing the IC-38 exam is the very first milestone for anyone entering India’s insurance industry. But many new agents ask the same question: What happens after the exam? The answer lies in understanding the commission roadmap — how you start earning, what grows over time, and the long-term benefits of renewals.
From Exam to Licensing
Once you clear the IC-38 exam conducted by IRDAI, you receive your insurance agent license. This allows you to officially sell policies of the company you join — whether LIC, HDFC Life, SBI Life, or any other insurer. Training and onboarding sessions follow, where you learn about products, compliance rules, and sales techniques.
Your First Policy & Initial Commission
The moment you sell your first life insurance policy, you unlock your first commission cheque.
- Term plans usually pay 25–30% of the first premium.
- Savings/Endowment plans can go higher, around 35–40%.
- ULIPs pay lower upfront, often 2–7%, but renewals are valuable.
This early stage is crucial — it proves that you can convert leads into actual sales.
Monthly Growth Through Persistency
Beyond the first sale, the real test is persistency — ensuring clients keep paying premiums every year. Companies track your persistency ratio closely. A strong record (75%+ renewal rate) not only builds steady income but also qualifies you for bonuses and higher-tier recognition programs.
Renewals: The Silent Wealth Builder
Every year when a client renews, you continue to earn a smaller but steady percentage (often 5–7% for traditional policies). Over 10–15 years, this becomes a powerful passive income stream, giving agents financial stability even if new sales slow down.
Climbing to General Agency
With consistent performance, you can move beyond individual sales and start building your own team as a General Agency (GA). At this stage, your income is not just commission on your own sales, but also overrides on the sales of agents you recruit and mentor. This is where income scales into lakhs per month.
Why It Matters
The IC-38 exam is not just an entry test — it’s the gateway to a structured income roadmap. From first-year commissions to renewal income and eventually leadership as a GA, every step builds upon the last. For those serious about a long-term career, mastering this path is essential.
This article is part of the complete career roadmap. Read the full guide here → From IC-38 Exam to General Agency: Step-by-Step Agent Income Journey
