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LIC Agent Commission 2018 – How Much Money LIC Agents Make By Selling Policies


Do you know how much money LIC agents are making by selling an insurance policy? There are lakhs of LIC agents who are living on commissions earned from LIC policies. In this article I will be sharing the commissions structure of LIC insurance agents for various policies.

Before proceeding further, let me tell you one thing that it is not that easy to become LIC agent and make money these days. People started understanding the importance of insurance and also how to analyse a product before buying.

As a LIC agent everyone is trying to sell the insurance policy which is having maximum commission rates. Let’s explore different types of LIC policies and how much commission one can make by selling a policy.

How To Become LIC Agent?

Do you think it’s easy to become a LIC agent? It’s not that easy actually. You have to be qualified for that and accordingly apply for the same through LIC agent examination followed by an interview. Here is the step by step guide:

Procedure to become LIC Agent:

Step #1: Now the Education Qualification has been relaxed from HSC to 10th pass. Age is 18 years & above.

Step#2: Visit your nearest LIC of India branch and ask for the requirement or vacancy. They will ask you to complete the mandatory 25 hours training first.

Step #3: 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).

Step #4: After successful completion of the examination you will be provided an Appointment Letter and Identity Card to work as an insurance agent. You will be a part of existing team under your Development Officer. After that you will be provided with all necessary trainings further.

Endowment Plans from LIC of India

Here is the commission rates for an endowment policy from LIC of India. LIC has couple of endowments policies and the below table will answer your queries for below policies.

  • LIC’s Jeevan Utkarsh agent commission
  • Lic’s Jeevan Pragati agent commission
  • Lic’s Jeevan Labh agent commission
  • Lic’s Single Premium Endowment Plan agent commission
  • Lic’s New Endowment Plan agent commission
  • Lic’s New Jeevan Anand agent commission
  • LIC’s Jeevan Rakshak agent commission
  • LIC’s Limited Premium Endowment Plan agent commission
  • LIC’s Jeevan Lakshya agent commission
  • LIC’s Aadhaar Shila agent commission
  • LIC’s Aadhaar Stambh agent commission
Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
2 to 4 yr5%2.25%2.25%
5  to 9 yr10%5%5%
10 to 14 yr20%7.5%5%
15 yr & above25%7.5%5%

That means, for a longer term policy the earning potential in first year is huge. And that’s the reason why LIC policies are not able to give good return on investment in long run.

LIC Money Back Plans

These are nother popular type of insurance policies from LIC of India, which will be surely offered to your by LIC agents. Personally I have seen my father has purchased couple fo such policies from relative who is LIC agent.

Here are the list of Money Back policies from LIC of India and you can checkout the commission rates below.

  • LIC’s Jeevan Tarun Agent commission
Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
As per plan15%10%6%
12 year15%8%6%

There are various other types of plans like LIC pension Plans (Jeevan Akshay VI policy) where the commission rates are very low. In fact in case LIC term plan (LIC E Term Plan) also the commission rate is very low.

That’s why none of the LIC agents offer you any of these policies. Mostly they will offer you money back plans or endowment plan as the commission structure is very high.

Example: Let’s calculate the Jeevan Lakshya Plan agent commission

To illustrate the income benefit of an LIC agent form this plan, let’s consider a policy of yearly premium value 1,00,000 for a policy term more than 15 years, e.g. 20 years. In that case as per the above commission chart the calculation will be like below

  • 1st year 25% of 1 lakh = 25,000
  • 2nd and 3rd year 7.5% of 1 lakh = 7500 x 2 = 15,000
  • 4th year onward till 20 year 5% of 1 lakh = 5000 x 17 = 85,000
  • Total of all = 25,000 + 15,000 + 85,000 = 1,25,000

Don’t Miss Should I surrender LIC Jeevan Anand Plan?

So just imagine how much profit LIC have to make and also how much LIC will be able to return to insurer who actually paid the premium for this plan.

But don’t think in that way as it is the job of LIC agents and they have to reach their targets to keep their LIC agent license active. There is some rule under LIC which is called LIC Agents Minimum Business Guarantee (MBG) rules or in other words lic agent target per year or lic agent minimum target etc.

What is important here is that, you should know why you are buying an insurance policy. Just do your proper research before buying any LIC policy and as per your need only you should proceed.

Through this article, I just want to share the information about LIC agents commission structure and what is the earning potential. In case you are looking for a good career opportunity as insurance agent, then you can surely become LIC agent and make money.

LIC Agent Commission 2018 – How Much Money LIC Agents Make By Selling Policies
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    sir i am financial consult in lic in ulhasnagar if u want help i sugg u in lic which has launched new benfit plan if u are int call 9826173301


  2. Rakesh kumar Rakesh kumar

    I am a member’s zonal club and CLIA. If any one interesting to take a new plans of Lic of India. Please contact on mail [email protected] or phone 9934790194. Thankyou!

  3. life paramount life paramount

    Hi Guys,

    We are newly launched LIC agency, we like to offer to you a guaranteed return commission on all of your policies taken from us.
    we will return your commission for the first year premium. it would be around 25%-40% of your first year premium.

    Currently we are operating from Pune and will transfer your policies to your city as per your request. Your commission will be returned to you, once we get the First Premium Receipt from LIC for your policy.

    Life Paramount Insurance Agency,
    Contact : 8668927730
    Email : [email protected]

  4. Nitin kedia Nitin kedia

    Hi, if anyone interested for new LIC plan, then contact me in this no. 9836968316 or you can whatsapps . Thanks, Nitin kedia .

  5. Ashok Jena Ashok Jena

    I think the calculation is wrong here. for the first year the commission is 25% of premium paid, not the insured value. same goes to rest of the years. Its always of the premium paid. Correct me if I am wrong.

    • Yes, you are right. This is a typo only, we will fix the same. 🙂


    Hi, If any one interested to take a NEW LIC PLAN , Please contact me on phone – 9156925835 ATUL SINGH

  7. Gopi Gopi

    I want 100% duscount of first time paying.Iam diz two types of planes intrested jivan laksha nd anand.

  8. Senthil Senthil

    Hi friends I am senthil. if you need any one New Lic policy. I will come and explain future and benefit.if your interest you can reach me out. I am working in TCS TOO. This is my no +919940209145, 9941694693

  9. Hemraj Hemraj

    I want to do Policy with 2000-3000 rupees investing, Where should I invest money for my best return in future for different yearwise?

    • Either in PPF account or invest in Stock market via Mutual Fund way for long term.

    • harshita harshita

      sir i am financial consult in lic in ulhasnagar if u want help i sugg u in lic which has launched new benfit plan if u are int call 9320432140

  10. Rajesh Sharma Rajesh Sharma


  11. venkat venkat

    there is new pan came aegon life imaximise insurance plan whether it is a goodone one to go

  12. Raghav Raghav

    What is the procedure to become a LIC agent, as I want to take two policies, so let me become a LIC agent and take that two policies, so I will get my commission paid every year? Please elaborate.

    • Please LIF of India office for more details. I think there is some exam going on for this, not sure.

    • shravan shravan

      Hi Raghav

      Please whatsapp me 7396464138

  13. Anonymous Anonymous

    I wanted to know if I can take a policy directly from LIC without involving any agents. Is it possible? Again can I get the credit for those commissions that I pay deducting the agents commission that can reduce my premiums?
    After all the agents do nothing other than striking a deal and we hardly have anything to do with them once the policy is taken, while they get paid paid from my premiums I pay without putting any efforts thereafter.

    • I dont think you will get anything. But you can buy a LIC policy by visiting any branch.

    • TMR TMR

      you can take policy directly from LIC without Agent but you wont get commission instead of that you will pay premium little less

      • This is very wrong information, as per IRDA no company can sell policy directly without agent, because LIC agent

  14. R.Senthilkumar R.Senthilkumar

    Hi santanu i want to take new lic policy jeevan lakshaya what is your advice…

    • I think almost all LIC policy has similar structure with a return policy. You can read the reviews and also do a return calculation to understand.

  15. Prashant Prashant

    Hi, If any one interested to take a New LIC plan , Please contact me.

    best regards,
    Cell: +91-8806-236-459

  16. Prakash Patil Prakash Patil

    Hi, If any one interested to take a NEW LIC PLAN , Please contact me on phone – 9322434390

  17. Balaji Balaji

    Hi, If any one interested to take a NEW LIC PLAN , Please contact me on phone – 9840205838

  18. Abhishek Chaubey Abhishek Chaubey

    I want to change my lic policy agent…….want to transfer it to another agent help me.

    • Why you need a LIC agent in 2015? I think you can directly visit LIC office and ask for whatever you are looking for.

    • TMR TMR

      we cant change the Agent for your existing policy

  19. p sreedhar p sreedhar

    Nice and very useful information shared bro. Seems like lic agents commission rate has come down drastically from before.

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