Agent Earns 35%? Your Premium Buys Wrong Cover

IRDAI wants to cap how much commission insurance agents earn. Until the cap kicks in, agents may push expensive policies that earn them more — not what's best for you. Here's how to protect yourself.

Here's what happened: IRDAI's senior member has signalled the regulator does not support delaying the proposed cap on insurance distributor commissions.. A long delay risks agents rushing to sell high-commission products before the cap takes effect, creating a mis-selling surge.. The commission cap is part of IRDAI's larger reform agenda to make insurance more affordable and distribution more transparent for retail buyers..

What you should do: Ask your agent to give you a written comparison between what they recommended and a basic term or pure health plan — a good agent will oblige.. Check your existing policy type: if you hold a ULIP or traditional endowment plan, log into your insurer's portal and verify charges, surrender value, and actual life cover amount.. Avoid buying any new insurance policy under sales pressure right now — wait until IRDAI's commission cap rules are finalised so the market settles around genuinely competitive products..

Term insurance pays agents the lowest commission — that's exactly why it's rarely the first product they show you. Always ask for it by name and compare.

If you're considering settling a loan, our loan settlement guide walks through the process.