LIC Agent Commission Chart 2026

Becoming a LIC agent is a career in the insurance sector that provides flexibility, job satisfaction, and the opportunity to earn big commissions. Agents have the opportunity to provide customers with financial security while earning a living because of the confidence and reputation of the Life Insurance Corporation (LIC). So, see below the LIC commission chart 2026.

LIC Agent Commission Chart 2026 PDF Free Download

Responsibilities And Duties of an LIC Agent:

LIC agents do more than just sell policies. Their primary responsibilities are summarized as follows:

1. Offering Guidance to Clients:

LIC agents educate clients about various life insurance plans and help them choose the one that best suits their needs.

2. Selling Policies:

Agents are responsible for promoting LIC’s insurance products, achieving sales targets, and acquiring new clients.

3. Customer Service:

Agents aid in processing claims, ensure that clients are aware of when premiums are due, and assist policyholders in understanding the terms of their policies.

4. Relationship Maintenance:

Building and maintaining long-lasting relationships with clients is crucial to an agent’s success since it promotes referrals and repeat business.

How to Become a LIC Agent:

LIC appoints individual insurance agents to sell and service its life-insurance products. See how to become a LIC Agent.

1. Check your eligibility

According to LIC’s published agent guidelines, the basic requirements are:

• Minimum age: 18 years.
• Education: At least 10th standard pass.
• You should be willing to work as an insurance agent and devote adequate time to the business.
• You must satisfy the applicable insurance-agent appointment requirements. 

So, for example, if you are 18 or above and have passed Class 10, you can approach LIC to start the process.

2. Visit your nearest LIC branch

The simplest way to start is to visit your nearest LIC branch and ask to meet the Development Officer regarding becoming an individual LIC agent. LIC’s own guidelines specifically instruct prospective agents to contact their nearest branch office and meet the Development Officer. 

3. Apply for appointment:

After expressing your interest, LIC will take you through its recruitment/appointment process.

Typically, you will need to submit personal and educational information along with the documents requested by LIC.

The exact document list can depend on the current application procedure, so it is better to obtain the checklist from the LIC branch rather than relying on an old list found online.

Commonly requested documents may include:

• Aadhaar or other identity proof
• PAN card
• Address proof
• Educational certificate/10th certificate
• Passport-size photographs
• Bank-account details/cancelled cheque where required
• Other declarations/forms prescribed by LIC

4. Attend the interview

LIC’s published guidelines state that the Branch Manager/Branch In-charge conducts an interview and, if you are found suitable, you are sent for the required training. 

The interview is not something you should be overly worried about.

A good attitude and willingness to learn are important.

5. Complete the required training

After selection, you have to complete the prescribed pre-recruitment insurance training.

LIC’s current published guidance describes 25 hours of training covering various aspects of life-insurance business.

The training is intended to teach you the fundamentals you need before taking the insurance-agent examination.

The exact curriculum can be updated according to the applicable regulatory requirements.

6. Pass the insurance-agent examination

After completing the required training, you have to appear for the prescribed insurance agency examination.

The examination is conducted under the regulatory framework prescribed by the Insurance Regulatory and Development Authority of India (IRDAI).

The applicable regulations state that an applicant must pass the Insurance Agency Examination in the relevant insurance subject to be eligible for appointment as an insurance agent. 

7. Receive your appointment

Once you successfully complete the required examination and satisfy LIC’s appointment requirements, LIC can proceed with your appointment as an insurance agent.

Understanding the New Commission Structure:

See below how to understand the new LIC agent commission chart 2026.

Impact on Policyholders:

The two primary changes that policyholders must cope with are an 8–9% increase in life insurance premiums and the requirement that policies be held for a minimum of a year in order to qualify for surrender value. This change aims to improve policy retention by making insurance a long-term financial commitment for the insured.

Impact on Agents:

The decline in the first-year commission forces agents to make adjustments by selling additional policies to maintain their income. Even if their initial revenues on a new insurance policy drop, the increase in renewal commissions offers better long-term revenue potential. This better aligns agents’ incentives with long-term customer retention by ensuring that they have a stake in policyholders maintaining their coverage.

An Example Circumstance:

Consider an agent advertising a policy with a ₹1 lakh premium. Under the old commission system, the agent would have earned ₹35,000 in the first year. Under the new approach, the agent now earns ₹28,000 in the first year, but they also receive a higher renewal commission in the second year, which is ₹7,500 as opposed to the previous ₹5,000. Although the revised structure may result in a reduction of immediate income, it offers more advantages for maintaining long-term relationships with policyholders.

Commission Earned by LIC Agents:

LIC agents receive a commission from policyholder premiums. The LIC agent commission 2026 percentage is influenced by the type of insurance, the year premiums are paid, and the plan sold.

The following is a breakdown of the life insurance agent commission structure:

1. The Plan for Endowments:

An endowment plan is a type of life insurance policy that provides funds in addition to insurance coverage, according to LIC terminology. It offers protection as well as investment. See below the LIC commission chart 2026 India.

Premium Paying Term	Commission for the First Year	Commission for the Second & Third Year	Commission from the Fourth Year Onwards
15 years and above	25%	7.50%	5%
10 years to 14 years	20%	7.50%	5%
5 years to 9 years	10%	5%	5%
2 years to 4 years	5%	2.25%	2.25%

2. Money-Banking Plans:

The Money Bank Plan is one type of insurance policy that provides both life insurance and a savings component.

Premium Paying Term	Commission for the First Year	Commission for the Second & Third Year	Commission from the Fourth Year Onwards
As per plan	15%	10%	6%
12 years	15%	8%	6%

3. Children’s Plans:

Child plans are specialized insurance policies designed to provide children with the future financial security they will require.

Premium Paying Term	Commission for the First Year	Commission from the Second Year Onwards
9 years and above	10%	5%
5 years to 9 years	7.50%	5%
2 years to 4 years	5%	2%

4. Pension Plans:

The purpose of pension plans, which are insurance products, is to provide people with financial security in retirement.

Premium Paying Term	Commission for the First Year	Commission from the Second Year Onwards
More than 4 years	7.50%	2%
2 years to 4 years	5%	2%

Additional Changes:

• Minimum Sum Assured: The minimum sum assured for policies has been raised from ₹1 lakh to ₹2 lakh, applicable to policies effective from October 1, 2024.
• Premium Increase: LIC has increased premiums by 8-9% across various life insurance products.
• Surrender Value Norms: Policyholders are now eligible to surrender their policies only after completing one full premium year, aiming to promote long-term policy retention.

Gratuity Benefits:

In December 2023, LIC increased the gratuity limit for agents from ₹3 lakh to ₹5 lakh, enhancing financial security for its agents. These changes reflect LIC’s commitment to aligning agent compensation with policyholder benefits, ensuring sustainable growth and retention in the insurance sector.

LIC MDRT Agent Salary Per Month 2026

An MDRT agent does not receive a fixed monthly salary from LIC. MDRT (Million Dollar Round Table) is a professional performance qualification, and an agent’s actual income depends on first-year commissions, business volume, product mix, and renewals. For 2026 MDRT membership, the production is based on 2025 business.

How Much Business Is Needed for MDRT in 2026?

For India, the published 2026 requirements are approximately:

Level	First-Year Commission	Premium
MDRT	₹11,32,600	₹45,30,400
COT	₹33,97,800	₹1,35,91,200
TOT	₹67,95,600	₹2,71,82,400

An agent needs to qualify through one applicable production method—commission, premium or income—not necessarily all three.

MDRT, COT and TOT Difference

MDRT is the base level. COT (Court of the Table) requires approximately 3 times the MDRT production, while TOT (Top of the Table) requires approximately 6 times. Thus, these represent progressively higher levels of annual production.

For 2026 MDRT membership, the following India qualification figures apply based on 2025 production:

Level	Commission Method	Premium Method	Approx. Multiple of MDRT
MDRT	₹11,32,600	₹45,30,400	1×
COT	₹33,97,800	₹1,35,91,200	3×
TOT	₹67,95,600	₹2,71,82,400	6×

Key Difference

• MDRT (Million Dollar Round Table): The entry-level qualification and the standard benchmark for high-performing insurance professionals.
• COT (Court of the Table): Requires approximately 3 times the MDRT production.
• TOT (Top of the Table): Requires approximately 6 times the MDRT production.

An agent generally qualifies through one of the applicable production methods, such as commission or premium; the figures should not be added together. Also, MDRT is not a salary grade—it is a professional production qualification, so an MDRT agent’s actual monthly income can vary considerably.

Monthly Earnings of an MDRT Agent

There is no guaranteed “MDRT salary.” As a practical illustration, an established MDRT-level LIC agent might target roughly ₹50,000–₹2,00,000+ per month, depending on business and commission structure. High-performing agents can earn substantially more, but MDRT qualification itself does not guarantee any particular monthly income.

Commission Calculator:

The LIC agent commission is calculated using a percentage of the policyholder’s premium. The formula varies according to the policy year because commission rates for the first year of the insurance are different from those for subsequent years.

The formula for the First-Year Commission:

First-Year Commission = Annual Premium (First Commission Rate / 100)

For example:

• In the event that an LIC agent offers a policy with an annual premium of ₹50,000 and the commission schedule looks like this:
• The first-year commission is 25%.

The Calculations that Follow Will be Performed:

• 50,000 (25/100) ₹12,500
• Formula for Second and Third-Year Commissions
• The second or third year commission is calculated by dividing the Annual Premium (second or third commission rate) by 100.

For example:

• In the event that a LIC agent offers a policy with an annual premium of ₹50,000 and the commission schedule looks like this:
• Second or third year: 7.5%

The Calculations that Follow Will be Performed:

50,000 (7.5 / 100) = ₹3,750 (P.A.)

The equation for years four and up

Fourth Year Onward Commission = Annual Premium (Fourth Commission Rate/100).

For example:

In the event that a LIC agent offers a policy with an annual premium of ₹50,000, and the LIC agent commission schedule looks like this:

Starting in the fourth year: 5%

The Calculations that Follow Will be Performed:

50,000 (5/100) = ₹ 2,500 (P.A.)

This formula can be used to calculate your earnings as a LIC agent based on commission percentages and premium amounts.

Conclusion:

Working as an LIC agent offers a rewarding career with flexibility, substantial earning potential, and the satisfaction of helping others secure their futures. LIC is a great choice for people who want to start a career in insurance because of its reputation, comprehensive training, and enticing LIC commission 2026 plans. If you’re interested in becoming an agent, follow the above steps to take advantage of the benefits and incentives that LIC offers.

Prospective agents can make wise decisions about this field of business by having a solid understanding of the commission system. Regardless of your career or side gig ambitions, working as an LIC agent can result in both financial gain and personal joy.

FAQs: