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LIC Agent Commission – How much commission LIC agent gets?

As you are reading this post, I assume either you are LIC agent or want to know how much commission LIC agent gets? Whatever be the case, here is complete information about LIC agent commission rates.

LIC agent is one of the most respected professions in India. LIC agents are officially designated insurance advisor that helps you in taking an important decision of life – buying a life Insurance policy.

Let’s take a look at LIC Agent Commission rate on various insurance policies.

LIC Agent commission is nothing but money that an LIC agent gets from insurance corporation for selling the policy. LIC agent commission depends on the term of policy and type of insurance policy (Endowment, money back etc.).  Higher the terms mean better is a commission.

LIC Agent Commission

LIC Agent Commission Rate

LIC Endowment Plan

An endowment policy is life insurance policy that offers life insurance coverage. Apart from that endowment plan also pay lump sum amount at the end of maturity. Few popular LIC endowment plans and commission rate applicable are given below.

  • 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 applicable for endowment plan is given in below table –

Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
2 to 4 year5%2.25%2.25%
5  to 9 year10%5%5%
10 to 14 year20%7.50%5%
15 year & above25%7.50%5%

LIC Children Plan

Children Plan is specially designed to meet the increasing educational, marriage and other needs of growing children.

Premium Paying TermCommission 1st YearCommission From 2nd year onwards
2 to 4 year5%2.00%
5 to 9 year8%5%
More than 9 year10%5.00%

LIC Money Back Plan

Money back plans are plans where an insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. Few popular LIC money back plans and applicable commission are given below.

  • LIC New Money Back Plan – 20 Years
  • LIC New Bima Bachat
  • LIC New Children Money Back Plan
  • LIC Jeevan Tarun
Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
As per plan15%10%6%
12 year15%8%6%

From above it is very clear that LIC Insurance agents earn a hefty commission.

E.g If someone buys LIC Jeevan Utkarsh Policy Endowment plan for 15 years and above. In the first year, LIC agent gets 25% of the premium. This means if insurance premium is Rs.10000, an agent will get Rs.2500 in the first year.

For second and third year agent will get 7.5% (Rs.750) and for remaining year 5% (Rs.500) till maturity of the plan. So, in 15 years LIC agent will get roughly Rs.10000 as an insurance commission.

Also Read – Top 7 Best LIC Policy

Note – Above example is for illustration purpose only. The income of agent varies based on term and insurance premium.

The task of LIC Agent is to sell insurance policy. In addition to selling insurance policy, LIC agent needs to serve to customer by serving them throughout policy tenure. The services LIC agent needs to offer are premium reminder,revival of laps policy, assisting during claim process etc.

Looking at above benefits and tasks if you are planning to become LIC agent follow the steps given below to become LIC agent.

How to become LIC Agent? – LIC Agent Recruitment 

Offline Method

  • Visit your nearest LIC of India branch and ask for the requirement of Agent. They will ask about your educational background and age. If you are HSC passed and you have crossed minimum age limit of 18 years you can become an agent. You need to complete mandatory 25 hours training.
  • After completion of the training sessions, you have to go through the LIC Pre Recruitment examination conducted by the Insurance Regulatory and Development Authority of India (IRDAI).
  • Once you clear the test you will be given appointment order and ID card to work as an insurance agent. You will be appointed under LIC development officer. Your task is to sell insurance policies you will earn commission on every insurance policy.

Online Method

  • You can also become LIC agent by applying online. Visit LIC Agent Recruitment website.
  • Sign up as a new user.
  • You need to enter your mobile number and captcha text.
  • Click on submit for action. On the next page you need to enter password.
  • Your ID will be registered.
  • You need to upload the document and apply for the test date.
  • Another alternative is making use of LIC Agent Recruitment App available on Google Play.

Well, if you are on another side where you are planning to buy an insurance policy you should remember few important points to avoid misselling.

Few LIC agents are completely behind commission income. They mis-sell insurance policy by making a false commitment.

The common sales speech used by LIC agent for mis-selling policy is – It is a very good plan that offers complete coverage and very good returns. Trust me you should buy this policy. I am your well-wisher and you need this policy.

Also Read – Pay LIC Premium Online via LIC portal, Mobile App & Paytm

This is one way there are many other ways which is adopted by LIC agent such as –

  • Trust myself, I have also purchased this insurance plan.
  • A promise of High return
  • Limited time availability of policy
  • Guaranteed return more than fixed deposit
  • Cashback offer of first premium or commission
  • A lot of Tax benefits

Well, LIC agents try to use every marketing technique to sell a policy. One sole reason behind this is commission income. Which is not one time it is year on year.

Points to consider before buying any Insurance Policy

  • Check Insurance policy website and know benefits applicable to the policy.
  • Ask for Standard illustration/calculation from the agent.
  • Study product document by yourself.
  • Check Exit clause and limitation of insurance policy.
  • Make sure you are underinsured before buying an insurance policy.

Note – Purpose of this post is to show make readers aware of – How much commission LIC insurance agent earns on single policy, LIC agent commission rate and misselling done by agents to earn more commission income. I am not against LIC agent or income of LIC agent.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.