How much commission do lic agents get

LIC Agent Commission: How Much Commission Does LIC Agents Get


LIC brokers have become one of India’s most renowned professions. These agents are officially designated insurance advisors that assist individuals in making a life-changing decision such as purchasing a life insurance policy.

The LIC agents are paid a commission for their efforts. But you know how much commission does LIC agents get? If you want to learn about the compensation structure for LIC agents, keep reading this page to learn about the LIC commission Chart.

What are LIC Agents?

A Life Insurance Corporation of India (LIC) agent is an insurance counselor who works for the LIC to sell products to the general population. These agents’ primary source of revenue commissions, which they receive when each premium is paid by the policy’s buyer. However, the percentage of the commission may differ depending on the policy offered. We will take a look at how much commission does LIC agents get later in this article.

How Much Does LIC Agent Get Commission?

For each policy sold, LIC agents are paid a commission based on a set commission structure. LIC agents sell insurance products to the general public and are compensated a certain fee for each policy sold. Let’s look at how much commission does LIC agents get as the amount they receive is known as a commission, and it is earned after each premium paid by the individual insurance policyholder.

When a policy is sold, a LIC agent receives a 35% commission for the first year, followed by a 7.5% commission for the second and third years. And, beginning with the fourth year, the agent receives 5% of the premium until the policyholder pays it.

Aside from commission, a LIC agent can be compensated in a variety of ways. Every other benefit, however, is contingent on how much commission the agent earns. Further advantages include subsidized loans, MDRT membership, and so on.

How Much LIC Agent Earn as Commission

In all of LIC’s normal insurance contracts, a 25% commission is paid largely in the first year, and a 40% commission is paid as a separate bonus commission. This means that LIC brokers receive approximately 35% commission for plans lasting 15 years or more in the first year.

Furthermore, the LIC of India pays 7.5% commission to its agents in the second and third years and 5% commission in all future years. It must be clear to you how much commission does LIC agents get, so let’s look at an example.

For example, in single-premium insurance, agents are paid a 2% commission that is paid only once. Furthermore, with ULIP plans, agents are paid a 5% commission for the first year and only 2.5% for the following years.

LIC Agent Commission Rates

The commission paid to LIC agents varies from policy to policy and also depends on the policy tenure or term and the LIC agent commission percentage also differs. As the policy term lengthens, so does the commission paid to agents. Let’s look at some commission charts with different term terms and rules and know how much commission does LIC agents get.

1. LIC Endowment Plan

In the LIC, an endowment plan is a life insurance policy that provides life insurance coverage. Apart from life insurance, an endowment plan pays a lump sum payment at maturity. Some of the most popular LIC endowment programs and commission rates are listed here.

  • LIC Jeevan Utkarsh
  • LIC Jeevan Pragati
  • LIC Jeevan Labh
  • LIC Single Premium Endowment Plan
  • LIC New Endowment Plan
  • LIC New Jeevan Anand
  • LIC Jeevan Rakshak

The commission rate for LIC endowment plans and the LIC agent commission percentage are shown in the table below:

Premium Paying Term Commission
1st Year
2nd & 3rd year
4th year onwards
2 to 4 yrs 5% 2.25% 2.25%
5  to 9 yrs 10% 5% 5%
10 to 14 yrs 20% 7.5% 5%
15 yrs & above 25% 7.5% 5%

You should now understand the LIC agent commission percentage received by LIC agents and how much commission does LIC agents get based on the chart shown above. To illustrate, consider the following: Assume you purchase a 20-year endowment plan with an annual premium of Rs 20,000. The LIC agent commission percentage received will thereafter be as shown in the table below.

Year No. of years Premium p.a Commission Rate Amount
1st year 1 20,000 25% 5,000
2nd & 3rd year 2 20,000 7.5% 3,000
From 4 year 17 20,000 5% 17,000
Total       25,000

2. LIC Children Plan

The LIC Children plan is specifically developed to satisfy the growing children’s educational, marriage, and other demands. Below the table is the LIC agent commission percentage for the children’s plan.

Premium Paying Term Commission 1st Year Commission From 2nd year onwards
2 to 4 yr 5% 2%
5 to 9 yr 7.5% 5%
More than 9 yr 10% 5%

3. LIC Money Back Plan

LIC money-back plans are plans in which an insured individual receives a percentage of the sum assured at regular intervals rather than a lump sum amount at the plan’s maturity. The following are some of the most popular LIC agent commission details with applicable LIC agent commission percentages.

  • LIC New Money Back Plan – 20 years
  • LIC New Bima Bachat
  • LIC New Children Money Back Plan
  • LIC Jeevan Tarun

The LIC agent commission percentage rates for LIC agent commission details are shown in the table below.

Premium Paying Term Commission 1st Year Commission From 2nd & 3rd year Onward 4th year
As per plan 15% 10% 6%
12 year 15% 8% 6%

4. LIC Pension Plan

For single premium plans, commissions for LIC pension plans begin at 2% of the single premium. However, commission rates and the lic agent commission details for other pension schemes are indicated in the table.

Premium Paying Term Commission 1st Year Commission From 2nd Year
2 to 4 yr 5% 2%
More than 4 yr 7.5% 2%

After the aforesaid benefits and work based on the LIC agent commission details, if you want to become a LIC agent, know how much commission does LIC agents get and complete the steps outlined below.

How to Become a LIC Agent?

A LIC agent’s job is to sell insurance policies and also to support customers throughout the policy’s tenure and you must know how much commission does LIC agents get. LIC agents provide services like as premium reminders, policy revival, assistance during the claim process, and so on. If the LIC agent commission details seem interesting to you and you wish to become a LIC agent, the process is outlined below.

1. Offline Method

  • In the offline approach, you must go to your local LIC of India branch and request an Agent. They may inquire about your educational background and age, and if you have completed your HSC and are over the age of 18, you can become an agent. To become a LIC agent, you must first complete 25 hours of necessary training.
  • Following the completion of the training session, you must take the Insurance Regulatory and Development Authority of India’s LIC pre-recruitment examination (IRDAI).
  • After passing the exam, you will be granted an appointment letter and an ID card that will allow you to operate as an insurance agent. You will be assigned to the LIC development officer and will be responsible for selling insurance policies in exchange for a commission.

2. Online Method

  • You can also apply to become a LIC agent online. Sign up as a new user on the LIC Agent Recruiting website.
  • Enter your phone number, then your new password.
  • Your ID will be recorded once you submit it, and you will need to upload the document and apply for the exam date.

These were the steps to becoming a successful LIC agent and knowing how much commission does LIC agents get, and if you are on the opposite side and want to acquire a policy, you need to keep a few crucial considerations in mind, which are stated below.

Things to Consider While Buying a Life Insurance Policy

Some LIC agents are solely focused on commission revenue and frequently mis-sell insurance policies by making misleading commitments and this is how LIC agents earn money. As a result, when purchasing insurance coverage, keep the following points in mind.

1. Evaluate your financial needs

Buying a life insurance policy is one approach to safeguard the future of people who rely on you. As a result, if you are capable and have adequate resources to meet your financial needs, you should consider purchasing a life insurance policy.

2. Decide the primary purpose of life insurance

When purchasing a life insurance policy, you must consider if you are purchasing insurance or an investment. And if you want insurance, you should get a term insurance policy.

Also, if you intend to invest, you should consider endowment or money-back schemes.

3. Evaluate your family requirements

When acquiring a plan, determine how much money your family will need to cover expenses such as household bills, children’s schooling and marriage fees, and some amount of medical emergencies. There is no need to determine the precise sum, but you should have a ballpark figure in mind when selecting the life coverage in the plan.

4. Evaluate your present financial condition

According to the policy provisions, a life insurance policy must pay a regular premium at regular periods. Hence, it’s a good idea to know how much premium you can afford based on your current financial situation. Also, determine whether your family will be able to live on the claim amount. These minor evaluations will relieve you of any financial pressure while paying insurance rates.

5. Choose an insurance policy tenure

The term of the insurance policy is also very important, and one method to calculate the optimal tenure of the policy is to subtract your present age from your retirement age. You should choose a tenure that will allow you to meet all of your family’s financial needs.

6. Select Riders wisely

Riders in life insurance policies are extra services such as accidental insurance or health insurance plans combined with life insurance. But, insurance firms charge a premium for delivering these add-ons. If not correctly acquired, these riders can grow more expensive. Hence, before selecting a plan, evaluate the premium amounts of different plans.

7. Compare policies before purchasing one

Several insurance firms offer various policies with various characteristics. Before settling on one, you should study all of the policies, compare their features, and ensure that they meet your needs. Agents may try to influence your decision to purchase a specific policy for their gain, so be aware of such conditions.


This concludes the post on how LIC agents earn money, and we hope you now understand how much commission does LIC agents get and the LIC agent commission rate. Before embarking on a career as a LIC agent, you should evaluate the above-mentioned commission facts. Also, if you are a consumer, keep the preceding factors in mind before purchasing an insurance plan.

How Much Commission Does LIC Agents Get – FAQs

Do all agents receive the same commission?

Ans. No. Another important point to note is that an agent will receive a bonus commission after meeting a simple requirement of 5 agency years and receiving premiums of 5 lakh rupees, so it’s now clear how much commission does LIC agents get. This commission is approximately 40% of their commission (visit the link for a short story on LIC commission sharing) and is initially paid yearly but later becomes something the agent receives monthly after a certain period has passed.

What is the LIC agents’ bonus commission?

Ans. With LIC, you can earn a bonus commission of 40% of the eligible first-year commission if you meet specific requirements based on the amount of premium secured and the number of lives covered in the first year.

Is working as a LIC agent a good job?

Ans. Indeed, being a LIC agent is a fantastic career path! It allows you to choose your own setup and working hours, and there is no cap on how much you may earn! Earnings are always favorable for most agents because LIC is India’s most popular and renowned insurance provider and commissions are the way how LIC agents earn money. As a result, selling LIC insurance is not difficult.

What is the LIC agent exam?

Ans. The IRDA (Insurance Regulatory Development Authority) Exam is also commonly referred to as the LIC Agent Exam. It is sometimes referred to as the IC-38 Exam. It is held once a year and requires simply a 10+2 pass educational qualification. This examination has no upper age limit!

This exam will last one hour. You will be given 50 questions to answer. These questions are of the objective type, which means you must choose the correct answer from the options provided. Each question is worth one point. It signifies that the full exam is worth 50 points.

To be considered for work as an agent, you must obtain at least 18 points on this exam. The more points you get, the better.

What additional advantages do LIC agents get?

Ans. You also get various financial advantages to help you save money.

  • Interest-free vehicle loan.
  • Low-interest home loan.
  • Office maintenance allowance.
  • Furniture allowance.
  • Advance for festival celebrations,
  • Reimbursement of mobile and internet bills.

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