What is the LIC Agent Commission

LIC Agent Commission

For Year 2015

LIC Agent commission is based on the LIC policy term and it may vary from policy to policy. Which means, higher the term, more the commission the LIC agent gets.

Maximum LIC Agent commission for the first year of the LIC policy is 25% (For 15 Years Term and above) The commission is reduced to 5% after the 4th year of the policy. In certain cases, LIC agents are paid out with first month premium to boost up them to drive more policies.

Primarily the LIC Agent commission is based on the policy term and the policy type such as Endowment, money back, term insurance, health insurance etc. Please find the below information about the LIC Agent commission, alternatively you can also get the LIC agent commission details from LIC Agent Portal.

First Commission / New Policy Commission

Depending on Term of the policy and type of the Policy like (Endowment, Money back, Term insurance etc.)

First Year Commission : Commission payable on the First year premium.

Bonus Commission : Subject to conditions.


Renewal commission : Depending on Term of the policy and the policy type

LIC Agent Commission Types

As I mentioned above, the maximum commission for any LIC Agent is, 25% on endowment policies and acquires 15% on Money back policies. LIC agent commission details are furnished below.

YEAR	1st Type (ENDOWMENT)	2nd Type (MONEY BACK)
1st YEAR	25%	15%
BONUS COMM.	40% OF COMM	40% OF COMM
2nd YEAR	7.5%	10%
3rd YEAR	7.5%	10%
4th YEAR onwards	5%	6%
1st YEAR	25%	15%

Assumption
Assume that you are collecting  Rs. 10,000 as annual premium  for  a n 20  year policy term  and  the  Policy holder  paying the premium in regular interval.

The  benefits  you may have are illustrated below :

ENDOWMENT TYPE	MONEY BACK TYPE
1st  Year   :10000 X  25%       –    2500 Bonus  :  2500 X  40%           –    1000 2nd  Year  :10000 X 7.5%      –      750 3rd  Year   :10000 X 7.5.%     –      750 4th Year     :10000 X  5%        –     500 5th Year     :10000 X  5%        –     500 6th Year     :10000 X  5%        –     500 7th Year     :10000 X  5%        –     500 8th Year     :10000 X  5%        –     500 9th Year     :10000 X  5%        –     500 10th Year   :10000 X  5%        –     500 11th Year   :10000 X  5%        –     500 12th Year   :10000 X  5%        –     500 13th Year   :10000 X  5%        –     500 14th Year   :10000 X  5%        –     500 15th Year   :10000 X  5%        –     500 16th Year   :10000 X  5%        –     500 17th Year   :10000 X  5%        –     500 18th Year   :10000 X  5%        –     500 19th Year   :10000 X  5%        –     500 20th Year   :10000 X  5%        –     500 TOTAL       :                                – 13500	1st  Year   :10000 X  15%      –       1500 Bonus  :  1500 X  40%       –       600 2nd  Year  :10000 X 10%       –     1000 3rd  Year   :10000 X 10%       –     1000 4th Year     :10000 X  6%        –      600 5th Year     :10000 X  6%        –      600 6th Year     :10000 X  6%        –      600 7th Year     :10000 X  6%        –      600 8th Year     :10000 X  6%        –      600 9th Year     :10000 X  6%        –      600 10th Year   :10000 X  6%        –      600 11th Year   :10000 X  6%        –      600 12th Year   :10000 X  6%        –      600 13th Year   :10000 X  6%        –      600 14th Year   :10000 X  6%        –      600 15th Year   :10000 X  6%        –      600 16th Year   :10000 X  6%        –      600 17th Year   :10000 X  6%        –      600 18th Year   :10000 X  6%        –      600 19th Year   :10000 X  6%        –      600 20th Year   :10000 X  6%        –      600 TOTAL       :                                –  14300
FOR SINGLE PREMIUM — COMMISSION = 2 %