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. How much commision do LIC agents get for the policy? How much a Lic agent earn? How much does one LIC agent make when we take an insurance? I will answer all your questions and guide you on how to become LIC agent & make money.

LIC agents commission rates are different as per different policies (Money Back policy, Endowment policy, term plan etc). You can easily login to your LIC agents portal and find out the latest LIC agents commission chart. The maximum commission you can earn from money back plans, which is up to 15%.

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

As an 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 A LIC Agent & Earn Money In India?

Do you think it’s easy to become an 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 of 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 the existing team under your Development Officer. After that, you will be provided with all necessary training further.

Lic Endowment Plan Commission Rates

Here is the commission rates for an endowment policy from LIC of India. LIC has a 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 long term policy the earning potential in the first year is huge. And that’s the reason why LIC policies are not able to give a good return on investment in the long run.

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LIC Money Back Plan Commission Rates

These are another 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 check out 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 of Lic Agents Commission

To explain how much an LIC agent can earn, let’s take the example of LIC Jeevan Lakshya plan. To illustrate the income benefit of an LIC agent from this plan, let’s consider the below policy details

  • Annual premium value 1,00,000
  • Policy term 20 years (more than 15 years)

In that case, as per the above commission chart, the LIC Agent commission 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

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So just imagine how much profit LIC have to make and also how much LIC will be able to return to the 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. As per LIC Agents Minimum Business Guarantee (MBG) rules, every LIC agent must have to fulfill the targets.

If you want to make a career as an insurance agent in India, then LIC is without any doubt the best insurance company in India. There is no competition with others when we talk about the network. You can check out the claim settlement ratio and understand why LIC is such a big company. And that’s why LIC is able to pay such a huge Agent commission every year.


  1. 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. 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 :

  3. 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.

  4. 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

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


  7. 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.

  8. 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.

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

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

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