1. What is LIC Agent Commission?

LIC (Life Insurance Corporation) agents in Malaysia earn commission based on the premiums paid by policyholders. The commission rate varies depending on the policy type and duration.

2. How Commission is Calculated

The standard commission formula is:

Where:

• Premium — The insurance premium amount in Malaysian Ringgit (MYR)
• LIC Commission Rate — The commission percentage agreed upon

Explanation: The commission is a percentage of the total premium paid by the policyholder.

3. Importance of Commission Calculation

Details: Accurate commission calculation ensures proper compensation for insurance agents and maintains transparency in the insurance sales process.

4. Using the Calculator

Tips: Enter the premium amount in MYR and the commission rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical commission rate for LIC agents?
A: Commission rates vary but typically range from 2% to 40% depending on policy type and year of payment.

Q2: Are there different commission structures?
A: Yes, first-year commissions are usually higher than renewal commissions. Some policies may have bonus commissions.

Q3: When is commission paid to agents?
A: Commissions are usually paid after the premium is received from the policyholder and any free-look period has expired.

Q4: Are commissions taxable?
A: Yes, agent commissions are considered taxable income in Malaysia and must be reported to LHDN.

Q5: Can commission rates be negotiated?
A: Standard commission rates are usually fixed, but may vary based on agent performance and company policies.