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LIC Agent Commission Chart 2020 (How Much Do LIC Agents Earn?)


How to find the latest LIC Agents Commissions for 2020? Do you know how much commission LIC agents get by selling LIC policies? If you don’t know then let me tell you that LIC Agents are making a decent amount by selling insurance policies. Although due to heavy competition among Agents, among other insurance providers the earning potential has come down.

As a LIC agent, you can make good money by selling insurance policies. You will find all the latest LIC Agents commission chart 2020 available on that LIC Agent App. You can click this link and download the LIC Agent App from Google play store & register with your agent details.

LIC Agent Commission Chart 2020


If you have your LIC agent portal access already, that may not work for this LIC Agent App. You have to visit your nearest branch and collect the necessary login details for this App. So, what is LIC Agent Commission Rate? Let’s find out here.

How Do LIC Agents Make Money By Selling Policies?


How much commission do LIC agents get for the policy? How much a Lic agent earn? How much does one LIC agent make when we take insurance? I will answer all your questions and guide you on how to become a LIC agent & make money.

LIC agent’s commission rates 2020 are different as per different policies (Money Back policy, Endowment policy, term plan, etc). You can easily log in to your LIC agents portal and find out the latest LIC agents commission chart. The maximum commission you can earn from money back plans, which is up to 15%.

Before proceeding further, let me tell you one thing that it is not that easy to become a LIC agent and make money these days. People started understanding the importance of insurance and also how to analyze a product before buying.

As a LIC agent everyone is trying to sell the insurance policy which is having maximum commission rates. Let’s explore different types of LIC policies and how much commission one can make by selling a policy.

How Can I Become a LIC Agent in India?


Do you think it’s easy to become a LIC agent? It’s not that easy actually. You have to be qualified for that and accordingly apply for the same through the LIC agent examination followed by an interview. Here is the step by step guide:

Procedure to become LIC Agent:

Step 1: What is the qualification for the LIC agent? Now the Education Qualification has been relaxed from HSC to 10th pass. Age is 18 years & above.

Step 2: Visit your nearest LIC of India branch and ask for the requirement or vacancy. They will ask you to complete the mandatory 25 hours of training first.

Step 3: After completion of the training sessions, you have to go through the LIC Pre Recruitment examination conducted by the Insurance Regulatory and Development Authority of India (IRDAI).

Step 4: After successful completion of the examination you will be provided an Appointment Letter and Identity Card to work as an insurance agent. You will be a part of the existing team under your Development Officer. After that, you will be provided with all the necessary training further.

How Much Commission a LIC Agents Earns in India


LIC Endowment Plan Commission Rates 2020


Here are the commission rates for an endowment policy from LIC of India. LIC has a couple of endowments policies and the below table will answer your queries for below policies.

  • LIC’s Jeevan Utkarsh agent commission
  • Lic’s Jeevan Pragati agent commission
  • Lic’s Jeevan Labh agent commission
  • Lic’s Single Premium Endowment Plan agent commission
  • Lic’s New Endowment Plan agent commission
  • Lic’s New Jeevan Anand agent commission
  • LIC’s Jeevan Rakshak agent commission
  • LIC’s Limited Premium Endowment Plan agent commission
  • LIC’s Jeevan Lakshya agent commission
  • LIC’s Aadhaar Shila agent commission
  • LIC’s Aadhaar Stambh agent commission

Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
2 to 4 yr5%2.25%2.25%
5  to 9 yr10%5%5%
10 to 14 yr20%7.5%5%
15 yr & above25%7.5%5%

LIC Money Back Plan Commission Chart 2020


These are another popular type of insurance policies from LIC of India, which will be surely offered to you by LIC agents. Personally, I have seen my father has purchased a couple of fo such policies from relative who is LIC agent.

Here is the list of Money Back policies from LIC of India and you can check out the commission rates below.

  • LIC’s NEW MONEY BACK PLAN – 20 YEARS
  • LIC’s NEW MONEY BACK PLAN – 25 YEARS
  • LIC’s NEW BIMA BACHATA
  • LIC’s NEW CHILDREN’S MONEY BACK PLAN
  • LIC’s Jeevan Tarun Agent commission


Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
As per plan15%10%6%
12 year15%8%6%
There are various other types of plans like LIC pension Plans (Jeevan Akshay VI policy) where the commission rates are very low. In fact in the case LIC term plan (LIC E Term Plan) also the commission rate is very low.

That’s why none of the LIC agents offer you any of these policies. Mostly they will offer you money back plans or endowment plans as the commission structure is very high.

Example of Lic Agents Commission Chart 2020


To explain how much a LIC agent can earn, let’s take the example of LIC Jeevan Lakshya plan. To illustrate the income benefit of a LIC agent from this plan, let’s consider the below policy details

Annual premium value 1,00,000
Policy term 20 years (more than 15 years)
In that case, as per the above commission chart, the LIC Agent commission calculation will be like below

1st year 25% of 1 lakh = 25,000
2nd and 3rd year 7.5% of 1 lakh = 7500 x 2 = 15,000
4th year onward till 20 year 5% of 1 lakh = 5000 x 17 = 85,000
Total of all = 25,000 + 15,000 + 85,000 = 1,25,000

So just imagine how much profit LIC has to make and also how much LIC will be able to return to the insurer who actually paid the premium for this plan.

But don’t think in that way as it is the job of LIC agents and they have to reach their targets to keep their LIC agent license active. As per LIC Agents Minimum Business Guarantee (MBG) rules, every LIC agent must have to fulfill the targets.

Is there any target for the LIC agent?


Yes, every profession or job has certain targets to achieve. On a similar note, LIC Agents need to get some minimum amount of policies. Although this rule is getting changed from time to time, you can follow a very good discussion on this topic on Quora.

If you want to make a career as an insurance agent in India, then LIC is without any doubt the best insurance company in India. There is no competition with others when we talk about the network. You can check out the claim settlement ratio and understand why LIC is such a big company. And that’s why LIC is able to pay such a huge LIC Agent commissions every year.

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