How Much Commission Do LIC Agents Earn?
LIC agents earn a percentage of the premium paid by the policyholder. The percentage varies based on the type of policy, premium term, and whether it is a first-year premium or a renewal.
- First-Year Commission: Ranges from 15% to 35%
- Renewal Commission: Ranges from 5% to 7.5%
- Bonus Commission: Up to 40% of first-year commission based on performance
Life Corporation of India LIC agents get a commission of 25% to 40% for most of the policies they sell. For single premium plans the commissions are 2%. Also, the ULIP's plan have a commission of 2% only. 25% is the first year commission on endowment policies plus LIC agents get a bonus of 15% per year if they complete their yearly targets.
📥 Download the Latest LIC Agent Commission Rates (2025) – PDF Format This comprehensive guide provides detailed commission structures across various LIC policies, helping you make informed decisions.
Whats is LIC Agent commission? How Much Commission Do LIC Agents Earn?
Life insurance corporation of India (LIC) hires LIC Agents to sell their life insurance plans and provide LIC services to its policyholders. LIC of India pays commissions to LIC agents on sales of policies. Please note there is no other payout to a LIC agent and LIC commissions is the only earning that a LIC agent gets.
Different types of policies have different commission slabs and the commission rates vary for different policy terms as well.
Commission Structure for Different LIC Plans
Commission on Regular Premium Plans
- Endowment & Whole Life Plans
- First Year: 25%–35% (depending on term)
- Renewal: 5%–7.5%
Single Premium Plans Commission
- Fixed commission: Typically 2% of premium
- ULIP plans and some single premium policies offer as low as 0.5%
Term Insurance Plans
- First Year: 25%
- Renewal: 5%
Money Back and Endowment Plans
- First Year: 25%–30%
- Renewal: 6%
Commission for Limited Pay Plans
- First Year: 15%–20%
- Renewal: 4%–6%
Commission on ULIPs and Pension Plans
- First Year: 2%–5%
- Renewal: 2%
Commission Structure for Different LIC Plans
| PREMIUM | COMMISSION LIC AGENT GETS |
|---|---|
| First Year Premium | Depends on policy and the term chosen |
| Renewal Premium | Paid on every renewal premium payment |
| Yearly Bonus | Is calculated on all the policies done during the year and past performance |
| Club membership benefits | Cash rewards, office expenses, loan, etc. |
So as you can see the LIC agent starts getting his or her commission as soon as you the buyer starts paying the premium.
LIC Agent Commission on Different Policies
| LIC Policy / Plan Name | Premium Term | 1st Commission | 2nd, 3rd Year Commission | 4th Year Onwards Commission |
|---|---|---|---|---|
| New Endowment, New Jeevan Anand, Jeevan Lakshya, Jeevan Labh, 855, 905, 914, 915, 932, 933, 934, 936 & 945 | 15 years and above 10 to 14 years 5 to 9 years | 25% 20% 10% | 7.5% 7.5% 5.0% | 5% 5% 5% |
| 943 & 944 LIC Aadhaar Stambh, LIC Aadhaar Shila | 15 to 20 years 10 to 14 years | 25% 20% | 7.5% 7.5% | 4th and 5th year 6% 6th year onwards 5% |
| LIC Saral Jeevan Bima – 859 | 15 years and above 10 to 14 years 5 to 9 years | 12.50% 10% 5% | 5% 5% 5% | 5% 5% 5% |
| LIC’s Dhan Rekha Plan – 863 (limited ppt) | 10 years 15 to 20 years | 20% 52% | 2nd, 3rd, 10th, 15th & 20th year 7.5% | 4th, 9th, 11th, to 14th, 16th to 19th year 5% |
| LIC’s Dhan Sanchay – 865 | 5 years 10 years 15 years | 10% 20% 25% | 5% 7.5% 7.5% | Except 5th, 10th, 15th 5% During 5th, 10th and 15th 7.5% |
| New money back 20 years – 920, New money back 25 years 921 | 15 years 20 years | 20% | 7.5% | 5% |
| LIC New Endowment Plus Plan – 935 | 10 to 20 years | 5% | 3.5% | 2.5% |
| 852 (premium band 40,000 to 74.000) | 10 to 25 years | 2.50% | 3.50% | 4.5% |
| 852 (premium band 75,000 & above) | 10 to 25 years | 4% | 4.50% | 4.5% |
| LIC Jeevan Shiromani plan – 947 & LIC India Bima Shree plan – 948 | 16 years 10, 12 and 14 years | 25% 20% | 7.5% 7.5% | 5% 5% |
| LIC Bima Jyoti – 860 | 10 to 14 year 15 year | 25% 30% | 7.5% 7.5% | 5% 5% |
| New Pension Plus – 867 | 10 to 42 years | 5% | 2% | 2% |
| 906 | All | 25% | 2nd to 10th year 10% | 11th year onward 5% |
| 856 | Single premium | 0.1% | NA | NA |
| 916, 917, 849, 855, 857, 858, 859, 862, 863, 865, 866 & 867 | Single premium | 2% | NA | NA |
Bonus Commission, Excluding single premium plans and Plan 860, 40$ of 1st year commission
Whenever a policy is sold by LIC of India. LIC commissions are paid. These commission values are expenses that LIC pays to their network of agents and agencies to get policies sold. The LIC commissions can vary from 2% to almost 35% depending upon the policy and tenure. LIC agents commission in 2021 are out and you can see the percentages of commission against each policy (with table number) in above section.
What is LIC Merchant Portal?
Besides hiring and recruiting agents LIC also has another type of agency work that is called the LIC Merchant. All LC’s merchant work through a Merchant Portal to manage all their work and see their commissions and other earnings.
LIC Agent Commission and other Payouts
LIC agents get many benefits and the details of these commission are not just limited to cash but it also includes insurance, expenses, office maintenance, stationery purchase etc. There are many ways a LIC agent is paid commission is just one part of a agent’s total earnings. A agent gets many other benefits besides commission but yes all the benefits are basis the commission he / she earns. LIC policy commission attracts many other benefits for agents.
Download LIC Agent Commission Rates
Click here to download pdf file
A agents gets the following commissions
- First premium commission
- Full premium term commissions
- Yearly bonus
- Club membership benefits
LIC Agent Commission Rates on Type of Policy
LIC agent commission rates depend on various things like policy table number, the term, etc.
Money Back Plan
LIC Agent commission on money back policies in 2021
Commission on money back plans
| Premium Paying Term | Commission | ||
|---|---|---|---|
| 1st Year | 2nd & 3rd Year | 4th Year onwards | |
| As per policy | 15% | 10% | 6% |
| 12 years and above | 15% | 8% | 6% |
source: plan money tax
Endowment Plan
LIC Agent commission on endowment policies in 2021
Commission on endowment policies
| Premium Paying Term | Commission | ||
|---|---|---|---|
| 1st Year | 2nd & 3rd Year | 4th Year onwards | |
| 2 to 4 years | 5% | 2.5% | 2.5% |
| 5 to 9 years | 10% | 5% | 5% |
| 10 to 14 years | 20% | 7.5% | 5% |
| 15 years and above | 25% | 7.5% | 5% |
Source plan money tax
Term Plan
LIC Agent commission on term plans in 2021
Commission on term plan
| Premium Paying Term | Commission | ||
|---|---|---|---|
| 1st Year | 2nd & 3rd Year | 4th Year onwards | |
| 5 to 9 years | 10% | 5% | 5% |
| 10 to 14 years | 20% | 7.5% | 5% |
| 15 years and above | 25% | 7.5% | 5% |
LIC Jeevan Labh Agent Commission A agent gets 25% commission on LIC Jeevan Labh policy. This commission is for the first premium and then 2nd and 3rd year the commission is 7.5% and for 4th year onward till whenever the policy is in force the agents gets 5% commissions on premiums.
Source Plan Money Tax
Commission on ULIPs and Pension Plans
LIC Agent commission on pension plans like Jeevan Shanti, Pradhan Mantri Vaya Vandana Yojana (PMVVY) in 2021
Commission on endowment policies
| Premium Paying Term | Commission | ||
|---|---|---|---|
| 1st Year | 2nd & 3rd Year | 4th Year onwards | |
| 2 to 4 years | 5% | 2.5% | 2.5% |
| 5 to 9 years | 10% | 5% | 5% |
| 10 to 14 years | 20% | 7.5% | 5% |
| 15 years and above | 25% | 7.5% | 5% |
source: Plan Money Tax
LIC commissions have two slabs one is policies lower or equal to 14 years and then policies more than 15 years term.The commission for policy term 14 is lesser than policies with term as 15 years or greater.
(NOTE IN CASE OF A SINGLE PREMIUM PLAN THE COMMISSION IS 2% OF THE PREMIUM)
Continuing on the topic of commission the agent will continue getting the commission even if he or she leaves the job or even dies granted that the business he brought in continues. The maximum commission a LIC agent can get is 25%, so based on that lets take an example
Akshay has taken a term insurance with a yearly premium of 1 lakh rupees so by the chart
Commission on endowment policies
| Premium Paying Term | Commission | ||
|---|---|---|---|
| 1st Year | 2nd & 3rd Year | 4th Year onwards | |
| 2 to 4 years | 5% | 2.5% | 2.5% |
| 5 to 9 years | 10% | 5% | 5% |
| 10 to 14 years | 20% | 7.5% | 5% |
| 15 years and above | 25% | 7.5% | 5% |
Do All Agents Get Equal Commission?
No. Another important thing to note is that an agent will also get a bonus commission after he meets a simple requirement of 5 agency years and getting premiums of 5 lakh rupees this commission is about 40% of their commission (visit the link for a short story on LIC commission sharing)and is initially paid yearly but later after a certain period has passed becomes something the agent get monthly.
How much cashback LIC agents give to the policy buyers?
LIC agents in Gurgaon usually give 40% cxashback to policy buyers.
Renewal Commission Explained
Renewal commission is what LIC agents earn when a policyholder continues to pay premiums beyond the first year. This provides a stable income over time, and generally ranges between 5% and 7.5% depending on the policy type.
For example:
- A 20-year endowment plan may offer 25% first-year commission and 6% renewal commission for the next 19 years.
Bonus Commission: Club Benefits & Performance Incentives
LIC provides bonus commissions to agents who qualify for various club memberships:
- Zonal Club: Additional 10% of first-year commission
- Divisional Club: 15%
- Branch Club: 20%
- Chairman’s Club: 40%
These are based on premium income, number of policies sold, and persistency ratio.
Example Calculations of LIC Agent Earnings
Example 1:
- Policy Premium: ₹50,000/year
- Plan: Endowment (20 years)
- First-Year Commission: 25% = ₹12,500
- Renewal Commission (next 19 years at 6%): ₹3,000/year = ₹57,000
- Total Commission: ₹69,500
Example 2:
- Policy Premium: ₹1,00,000 (Single Premium)
- Plan: ULIP
- Commission: 2% = ₹2,000
Frequently Asked Questions (FAQs)
Q1: What is the highest commission an LIC agent can earn?
A: With bonuses and club memberships, first-year commission can go as high as 49%.
Q2: Is LIC agent commission taxable?
A: Yes, it is considered income and is taxable under the Income Tax Act.
Q3: How can agents increase their commission?
A: By qualifying for clubs and focusing on high-premium long-term policies.
Download LIC Agent Commission Chart (PDF)
📥 [Click here to download the latest LIC Agent Commission Chart 2025 – PDF Format]
This chart includes a detailed breakdown of commissions by policy type and duration, and is a handy reference for all LIC agents.
Want to Become an LIC Agent? Here’s How!
Becoming an LIC agent is a rewarding career option with flexible working hours and long-term income potential.
Steps:
- Contact your nearest LIC branch
- Submit required documents (PAN, Aadhaar, educational proof)
- Complete the training
- Pass the IRDAI exam
For assistance, call or WhatsApp us at 9891420503 or visit our office in Gurgaon.