By Lal Singh LIC (Life Insurance Corporation of India) is one of the biggest insurance companies in India, and many people choose to become LIC agents because it offers good earning opportunities through policy commissions. But how much commission does an LIC agent actually get? Let’s understand in simple words.
How LIC Agents Earn Money
LIC agents earn through commissions on the insurance policies they sell. The commission depends on:
- Type of policy
- Premium payment mode (yearly, half-yearly, monthly, etc.)
- Number of years the policyholder continues to pay premium
- Renewal of policy every year
Commission Structure for LIC Agents
The commission rates are different for different types of plans:
1. Traditional (Endowment / Money-back / Term Plans)
| Year | Commission Percentage |
| 1st Year | 25% to 35% of premium (depending on plan type) |
| 2nd & 3rd Year | 7.5% |
| 4th Year onwards | 5% |
For example, if the yearly premium is ₹20,000 and the commission rate is 25%, then the agent earns ₹5,000 in the first year.
2. Single Premium Policies
| Premium Type | Commission |
| Single Premium Policy | 2% of premium amount |
3. Health Insurance Plans (LIC Jeevan Arogya, etc.)
| Year | Commission |
| 1st Year | 20% |
| Renewal Years | 5% |
4. Pension / Annuity Plans (LIC Jeevan Akshay, etc.)
| Year | Commission |
| 1st Year | 2% |
| Renewal | 1.5% (if applicable) |
Bonus Commission (Performance-Based Earnings)
Apart from regular income, LIC also offers bonus commission (overriding commission) to high-performing agents:
| Performance Level | Extra Commission |
| If agent achieves MDRT / high target | Up to 40% extra bonus |
| If agents recruit sub-agents (Development Officer) | They also get a part of sub-agent’s commission |
Example of How an Agent Earns
Suppose an agent sells a 20-year policy with:
- Annual premium = ₹30,000
- Commission rate = 25% (1st year)
Earnings:
| Year | Commission | Amount Earned |
| 1st Year | 25% | ₹7,500 |
| 2nd Year | 7.5% | ₹2,250 |
| From 4th Year onward | 5% | ₹1,500/year |
If the policy continues till 15 years, the agent earns around ₹30,000–₹40,000 from just one policy.
Do LIC Agents Get Monthly Salary?
No. LIC agents are not salaried employees. They earn only through commissions. However, if an agent sells many policies and gets regular renewal commissions, they can earn a steady monthly income.
Final Summary
- In the first year, agents earn the highest commission (25–35%).
- In renewal years, they earn 5–7.5% commission.
- Single premium policies pay very low (2%) commission.
- Commission depends on policy type, premium amount, and policy duration.
- LIC agent earnings are performance-based, not fixed salary.