Types of commission
| 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 Commission
| PLAN | Premium Paying Term | 1st Year | 2nd and 3rd Year | 4th year onwards |
| 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 | 15 to 20 years 10 to 14 years | 25% 20% | 7.5% 7.5% | 4th and 5th year 6% 6th year onwards 5% |
| 859 | 15 years and above 10 to 14 years 5 to 9 years | 12.50% 10% 5% | 5% 5% 5% | 5% 5% 5% |
| 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% |
| 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% |
| 920 921 | 15 years 20 years | 20% | 7.5% | 5% |
| 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% |
| 947 & 948 | 16 years 10, 12 and 14 years | 25% 20% | 7.5% 7.5% | 5% 5% |
| 860 | 10 to 14 year 15 year | 25% 30% | 7.5% 7.5% | 5% 5% |
| 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 Details
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.
A agents gets the following commissions
- First premium commission
- Full premium term commissions
- Yearly bonus
- Club membership benefits
Commission Based 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
Pension Plan
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.