A method and apparatus for local illumination compensation (LIC) for inter-prediction that uses a MinMax method to derive linear model parameters for the LIC. Values of parameters α and β for the linear model of the LIC are derived, based on reconstructed neighboring samples of the current block and reconstructed neighboring samples of the reference block. When a condition for the value of β is met, the value of α is clipped based on the value of β and the value of β is updated based on the clipped value of α before updating the inter-predicted sample values for the current block.