LIC Agent Commission Chart Plan Wise

In India, there are plenty of people who make a living as LIC agents. India’s largest life insurer Life Insurance Corporation of India (LIC) sells most of its insurance products through its agents.

Unlike the private insurers in the industry, LIC does not primarily rely on bancassurance or corporate agents to push its insurance products. LIC’s network of individual agents is the largest in any insurance business in the country. So, in this article let’s learn about the LIC agent commission chart plan-wise.

Commissions Earned by LIC Agents:

In order to become an LIC agent, an individual has to clear an examination and undergo a specific selection process. LIC agents make money through commissions on the policies they sell to their clients.

Commissions are calculated on the premiums paid by policyholders. There is a specific slab on the commissions that can be earned by policyholders. The commission they earn is not a one-time payment. Additional commissions can be earned as premiums are paid by policyholders for the subsequent years. 

The commissions earned by LIC agents are influenced by various factors such as type of policies, policy term, premium paying term, etc. The commissions earned during the first year of a policy will be significantly higher than the commissions earned during the subsequent years.

Once a policy is issued, agents will earn commissions during the entire premium payment term. The tentative commissions that can be earned under different types of policies can be given as follows:

LIC Agent Commission Rates For FIRST Year:

  • New Endowment Policy: 25%
  • Money Back Policy: 20%
  • Pension Policy: 2%
  • Term Policy: 25%
  • Health Insurance Policy: 25%
  • Child Policies: 25%

Endowment Plan LIC Agent Commission Chart For 2023

Premium Paying Term 1st Year After 1st Year

2-4 years 5% 2.25%

5-9 years 10% 5%

10-14 years 20% 7.5% (2 & 3 years), 5% (4th year onwards)

15 yrs and above 25% 7.5% (2 & 3 years), 5% (4th year onwards)

LIC Agent Commissions on Money Back Plan

Premium Paying Term 1st Year After 1st Year

As per Policy 15% 10% (2 & 3 years), 6% (4th year onwards)

12 years 15% 8% (2 & 3 years), 6% (4th year onwards)

LIC Agent Commissions on Children Plan

Premium Paying Term 1st Year After 1st Year

2-4 years 5% 2%

5-9 years 7.5% 5%

Over 9 years 10% 5%

Commission on Pension Plan

Single-Premium Plans – 2% of the total single premium amount

Other than a single premium plan

Premium Paying Term 1st Year After 1st Year

2-4 years 5% 2%

Over 4 years 7.5% 2%


LIC offers an extensive array of policies. Selecting the best plan from this list could get complicated if you don’t know what the different insurance phrases mean. Based on an analysis of your needs, an agent can make insightful recommendations. LIC agents receive commissions as payment for the assistance and policy advice they give to their clients.

You can get information about the application process by getting in touch with the organization directly if you want to become a career LIC agent. In addition to their normal professions, many agents work part-time to provide this service. You might be able to find the flexibility in your work that you are constantly seeking by pursuing a career as a LIC agent.