LIC Agent Commission Chart 2025

What is LIC Agent Commission?

An agent commission in LIC policy is the amount LIC of India pays to its agents for selling insurance plans. This amount is not fixed; it is a percentage of the policy premium and can vary depending on the policy type, duration, and the payment frequency.

In simple words: 

• First-year commissions are usually the highest.

• Renewal commissions are paid at a lower percentage in the second year and onwards.

• Some plans, like single premium policies, offer a one-time commission only.

How the LIC Agent Commission Chart Works? 

Plan-based commission rates: Each LIC policy has its specific commission structure.

Year-wise variation: LIC commissions are generally the highest in the first year, reduce in the second and third years, and continue as renewal commissions.

Renewal commissions: Agents receive a share of the renewal premium, motivating them to ensure policyholders continue their plans.

Different structures for policy types: LIC commission rates differ for single premium policies and limited premium payment policies. 

Example of LIC Agent Commission Structure

LIC commission in the first year can be as high as 25% or above, depending on the premium-paying term. 

The commission of the second and third years is generally lower, around 7.5% for different years. 

The LIC commission of subsequent years, where a Renewal commission of about 5% is paid often from the fourth year. 

LIC Agent Commission Plan Wise Details

Not all agent commissions LIC offers are same. The commission rate for LIC agent varies plan-wise:

• Endowment Plans: Highest commissions, especially for long-term plans.

• Money-Back Plans: Similar to endowment plans but slightly lower.

• Term Plans: Lower commissions since premiums are smaller.

• Single Premium Policies: One-time commission (usually 2%-5%).

• ULIPs (like LIC SIIP): Minimal commissions due to the investment component. In fact, agent commission in LIC SIIP plans is among the lowest.

This variation in LIC agent commission plan wise shows how different policies reward agents differently. Here is a more detailed view: 

1. Endowment Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC New Endowment Plan	15 Yrs and above	25	7.5	10
   	12 to 14 yrs	20	7.5	8
   LIC New Jeevan Anand	15 ys and above	25	7.5	10
   LIC Jeevan Lakshya	15 Yrs and above	25	7.5	10
   	10 to 14 yrs	20	7.5	8
   LIC Jeevan Labh	15 Yrs and 16 Yrs	25	7.5	10
   	10 Yrs	20	7.5	8
   LIC Single Premium Endowment	Single Premium	2	Nil	Nil
   LIC Bima Jyoti	15 yrs	30	7.5	Nil
   	10 yrs to14 yrs	25	7.5	Nil
   LIC Dhan Sanchay	15 Yrs	25	7.5	10
   LIC Jeevan Azad	Regular Premium	5	2	2
   LIC Micro Bachat	10 yrs to 15 yrs	10	6	Nil

2. Whole Life Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC Jeevan Umang	15 Yrs and above	25	7.5	10
   LIC Jeevan Utsav	5 to 9 Yrs	10	5	4

3. Child Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC Jeevan Tarun	15 yrs and above	25	7.5	10
   	10 yrs to 14 yrs	20	7.5	8
   	8 yrs and 9 yrs	10	4	5
   LIC New Children's money Back	15 yrs and above	25	7.5	10
   	13 yrs and 14 yrs	20	7.5	8

4. Money-back Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC Jeevan Shiromani	16 yrs	25	7.5	10
   	10,12,14 yrs	20	7.5	8
   LIC Bima Shree	16 yrs	25	7.5	10
   	10,12,14 yrs	20	7.5	8
   LIC New Money Back-20Yrs	15 Yrs	20	7.5	8
   LIC New Money Back-25Yrs	20 Yrs	20	7.5	8

5. Annuity Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC New Jeevan Shanti	Single Premium	2	Nil	Nil
   LIC Saral pension	Single Premium	2	Nil	Nil
   LIC Jeevan Akshay	Single Premium	2	NA	NA
   LIC New Pension Plus	Regular Premium	5	2	2
   	Single Premium	2	NA	NA

6. Term Assurance Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC Jeevan Amar	15 yrs and above	25	7.5	10
   	10 yrs to 14 yrs	20	7.5	8
   	5 yrs and 9 yrs	10	5	4
   LIC Saral Jeevan Bima	15 yrs and above	12.5	5	5
   	10 yrs to 14 yrs	10	5	4
   	5 yrs and 9 yrs	5	5	2

7. Unit-Linked Plans

   Plan Name	Policy Term	1st Yr	2nd & 3rd Yr	Bonus
   LIC Nivesh Plus	Single Premium	2	Nil	Nil
   LIC SIIP Plan	Premium 40000-74000	2.5	3.5	1
   	Premium 75000 & above	4	4.5	1.6
   LIC New Endowment Plus	10 yrs to 20 yrs	5	3.5	2

LIC Agent Commission Per Policy

Let’s say a policyholder pays ₹40,000 annually for a 20-year endowment policy. The agent commission LIC per policy could work out like this:

First Year: 25% of ₹40,000 = ₹10,000

Years 2 & 3: 7.5% = ₹3,000 per year

From Year 4 Onwards: 5% = ₹2,000 per year

So, over 10 years, the agent might earn over ₹35,000 in commissions from just one policy, and even more over the full term. This is how commission on LIC policy for agent builds over time and contributes to overall LIC agent earning.

First-Year vs Renewal Commissions

Many people assume agents get paid only when the policy is sold. In reality, a large portion of LIC agent earning comes from renewal commissions.

So even if a policy was sold five years ago, as long as the policyholder is paying premiums, the agent continues to earn, usually 5% every year. This system is what makes the LIC agent policy commission a continuous income stream for agents.

Such commissions form a strong part of the agent commission LIC policy, especially for agents in the business for several years.

Bonus Commission for LIC Agents

In addition to the standard LIC agent commission, LIC also offers rewards in the form of bonus commission for LIC agents. These incentives are given to high-performing agents who achieve sales targets, maintain strong renewal rates, or qualify for special recognition clubs like the Chairman's Club or the Zonal Manager's Club.

Where Can I find the LIC Agent Commission Chart? 

LIC Agents Website: Various websites and networks of agents also provide an agent commission chart. It is recommended to verify this from the official sites for the most recent rates. 

Official Documents of LIC: The most up-to-date information and accurate details is found in the LIC official documents and PDFs, provided by the banking partners or the corporation. 

Summing Up

Understanding the LIC agent commission gives a clear picture of how agents earn through LIC. It also shows how structured and long-term the income model is for LIC agents. From first-year earnings to ongoing renewals and bonuses, the commission system is designed to reward consistency and long-term policy servicing.

So, the next time you interact with an LIC agent or consider a policy, you’ll know exactly how the commission of LIC agent in LIC policy works and how much effort goes into every sale.

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