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LIC agent Commission

How much is an LIC Agent’s Commission? (LIC Commission Chart)

So, are you wondering how much commission does an LIC agent get? Are you interested in getting into the insurance agency business, or are you just curious about how much commission LIC gives to its agents? Well, learn about LIC’s commission structure, its rate of commission, LIC commission details and the LIC agent commission chart (plan wise) through this information-packed article. We will talk about the following:

  • How much is an LIC agent’s commission?
  • How do LIC agents make a commission?
  • LIC agent Commission Chart

How much is an LIC agent’s commission?

The exact commission of an LIC agent depends on the type of policy they have sold, and the bonus they have earned. But you can get an idea of the structure of LIC commission payments and understand how much commission an LIC agent can earn.

Commission Type

Commission Percentage %

Fresh policy sold

20-25% (depending on the policy sold)

Bonus on first year policies sold

Up to 40% of policy premium

Recurring commission (2nd and 3rd year)

7.5% of policy premium

Recurring commission (4th year onwards)

5% of policy premium

Now, let us understand the commission rates for different types of LIC policies:

Policy Type


Health Insurance


Term Plan


Endowment Plan


Money Back Plan


Child Plan


Pension Plan


To get a further idea about the commission rate, refer to the plan wise LIC Agent Commission Chart below. The chart specifically gives a detailed break-up of the commission rate based on the policy type and policy tenure.

How do LIC agents make a commission?

An LIC agent makes a commission in the following ways:

  • When they sell an LIC policy: This is the primary way an LIC agent earns a commission. An LIC agent gets a 20-25% commission on fresh LIC policies sold. This commission generally makes up the bulk of the LIC agent’s earnings.
  • When the policyholder renews a policy: An LIC agent also earns a recurring commission of 7.5% on the premium value whenever an existing LIC policyholder renews their LIC policy. The agent makes 7.5% on renewals for the 2nd and 3rd years. From the 4th year onwards, the agent makes a flat commission of 5% until the policy is in force.
  • Commission from bonus: LIC also provides its agents with a 40% bonus commission on the first year’s commission, provided the agent meets certain sales targets set by LIC.
  • Hereditary commission: If an LIC agent passes away, their commission will be paid to their next of kin or nominee. This feature provides a sense of security to the family of the LIC agent.
  • Free term insurance: LIC pays free term insurance to an agent under Schedule VI of the Agents Rules, 1972, if the agent passes away before the age of 60, subject to certain terms and conditions.
  • Retirement benefits: A gratuity of up to ₹ 2,00,000 is payable to an LIC agent as per Schedule VI of the Agents Rules, 1972.

As you can see, LIC has quite a few robust earning metrics for its agents, ensuring that they make a healthy income. If you are considering becoming an LIC agent, it could be a wise choice.

LIC Agent Commission Chart

LIC agent commissions are dependent on the type of policy sold and the tenure of the LIC policy sold. Different types of policies and different tenures attract different commission rates for LIC agents.

Get a detailed idea of LIC commissions by viewing the LIC agent commission chart below.

LIC commission chart
LIC Commission Chart

We hope this article shed some light on agent commission details, and agent commission structure. 

Author Bio

This article is written by Team, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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