Now we all have an idea when some guy approaches us randomly to sell some type of insurance policy. These individuals are the employed agents by LIC. They get a certain amount of commission for their work. But do you know how much commission these guys get? If you don’t know then keep on reading this article to know LIC Agent Commission Chart 2021. You can also check LIC Agent Commission Chart 2020.
What Exactly Are LIC Agents?
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LIC agents are some authorized sales promoting agents chosen by Life Insurance Corporation of India for their policies and plans. LIC agents generally make commissions on the products they sell. These commission rates change every year. We have earlier mentioned the LIC Agent Commission Chart 2020. This year is it time for the LIC Agent Commission Chart 2021.
What Does It Mean By LIC Agent Commission?
A LIC agent also gets several other advantages. Agent of LIC sells their insurance policies to the common people. And in return, they receive a certain amount of money for each policy you purchase from them. Well, the sum they receive is called a commission which they earn after each premium paid by the individual purchaser of the insurance policy. And the ratio of the commission varies with the kind of policy sold by the agent.
So, here is the LIC Agent Commission Chart 2021 as of March based on the insurance policy sold as well as different kinds of commission the LIC agents can get.
How Much Commission Does A LIC Agent Get?
In all the regular plans of LIC, 25% commission is given mostly in the first year and 40% on commission is also given as a separate bonus commission. This means you are given about 35% commission on the first year on plans of 15 years or more.
As you can also see in the above table, 7.5% commission for the second year and third year and 5% commission for all subsequent years is given by LIC of India to its agents.
In a single premium policy, you are paid a commission of 2%, which is given only 1 time. Similarly, in ULIP plans you are paid a commission of 5% for the first year and only 2.5% for the subsequent years.
| YEARS | FOR MONEY-BACK PLANS | FOR ENDOWMENT PLANS |
| First Year | 20% | 25% |
| 2nd Year | 7.5% | 7.5% |
| 3rd Year | 7.5% | 7.5% |
| 4th Year onward | 5% | 5% |
| BONUS COMMISSION | 40% OF COMMISSION | 40% OF COMMISSION |
| YEARS | ULIP PLANS(MARKET PLANS) | SINGLE PREMIUM PLAN |
| Commission | 2% and 5% onward | 2% |
LIC Agent Commission Chart 2021
According to the LIC Agent Commission Chart 2021 given above, you must have received information about the commission received by the LIC agent. But maybe you have not understood anything, so we try to explain you through the chart given below. That if a LIC agent sells a policy with a premium of ₹ 10000 per annum to one person for 20 years. How much commission will he receive?
| Year | MONEY BACK TYPE | ENDOWMENT TYPE |
| 1st year | 10000 X 25% – 2500 | 10000 X 15% – 1500 |
| Bonus | 2500 X 40% – 1000 | 1500 X 40% – 600 |
| 2nd Year | 10000 X 7.5% – 750 | 10000 X 10% – 1000 |
| 3rd year | 10000 X 7.5.% – 750 | 10000 X 10% – 1000 |
| 4th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 5th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 6th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 7th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 8th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 9th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 10th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 11th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 12th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 13th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 14th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 15th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 16th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 17th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 18th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 19th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| 20th year | 10000 X 5% – 500 | 10000 X 6% – 600 |
| TOTAL | 13500 | 1430 |
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