How Much Commission Do LIC Agent Get ?

An LIC agent is a person employed by LIC of India to sell policies to the general public. The main income of the LIC agents is through the form of commission which they get after every premium is paid by the respective buyer of the policy and the percentage of the commission might vary with the type of policy sold. There are several different types of policies and the yearly commission that the agent gets through these can be up to 35%.

There is a fixed commission structure that all LIC agents will receive for every policy sold by them. A LIC agent gets 35% commission for the 1st year when the policy is sold. After this, the commission for the 2nd and 3rd year is 7.5% each, and then from the 4th year onwards, the agent receives 5% till the policyholder pays the premium.

There are many ways a LIC agent gets paid and commission is just one part of an agent’s total earnings. An agent gets many other benefits besides commission but every other benefit depends on how much commission he/she earns. LIC policy commission attracts many other benefits for agents such as subsidized loans, MDRT membership etc. An agent gets the following commissions

Given below is an estimated chart of commission earned by selling policies-

The commission received after every sale made by you is not just for one time. You keep receiving the commission as long as the policy remains active. As long as the policyholder pays the premium, you will receive a commission. This commission is hereditary, which means that it will be paid to your nominees even after your death

Apart from earning income through commission during your tenure, you will also be entitled to gratuity payment. The career of a LIC agent is one of the few careers that guarantees a gratuity payment. At the age of 60, all agents who have served a minimum of 15 years are entitled to gratuity. The maximum amount payable currently is Rs.2,00,000/- depending upon the amount of renewal commission.