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LIC Agent Commission 2023 – How Much LIC Agent Het Commission for Every Policy

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I am your well-wisher and I will never give you the wrong advice. This is the best policy to protect your family’s future. Trust me.

These are some flattery lines used by insurance agents to show their concern toward you. Your welfare is not their sole purpose. Their primary purpose is the commission they get in return for selling you an insurance plan.

My experience with a LIC agent

Once I went to the LIC office to know about the LIC policies. The agent tried his best to convince me to take an endowment plan. Because the commission on the endowment plan was the highest.

That agent used every marketing technique to sell me the insurance policy. But I Came back without buying any policy. The agent called me many times every day for almost one month to convince me. If you want to become LIC agent, then you can read our comprehensive guide on how to become LIC agent.

Let see how much LIC agents get commission on selling a policy

Endowment Plan LIC Agent Commission Chart 2023

Premium Paying TermCommission
1st Year
2nd & 3rd year
 4th year onwards
2 to 4 yrs5%2.25%2.25%
5  to 9 yrs10%5%5%
10 to 14 yrs20%7.5%5%
15 yrs & above25%7.5%5%

I think you get a clear reason. You can check out the details of LIC bonus rates for 2023-24 here.

Have a look at the commission on other plans also.

LIC Agent Commission on Children Plans 2023

Premium Paying TermCommission 1st YearCommission From 2nd year onwards
2 to 4 yr5%2%
5 to 9 yr7.5%5%
More than 9 yr10%5%

LIC Agent Commission on Money Back Plans

Premium Paying TermCommission 1st YearCommission From 2nd & 3rd yearOnward 4th year
As per plan15%10%6%
12 year15%8%6%

Agent Commission on Pension Plans

Single-Premium Plan – 2% of single premium

Other than single premium

Premium Paying TermCommission 1st YearCommission From 2nd Year
2 to 4 yr5%2%
More than 4 yr7.5%2%

Let’s take an example. Suppose you buy an endowment plan having a term of 20 years with an annual premium of Rs 20,000.

YearNo. of yearsPremium p.aCommission RateAmount
1st year120,00025%5,000
2nd & 3rd year220,0007.5%3,000
From 4 year1720,0005%17,000
Total   25,000

I am neither against nor in favor of this. My only motive for writing this article is to aware the policy buyer of the commission which the agent earns. So that buyers can take an informed decision while buying a policy.

You should consider the following facts while buying the insurance policy –

  1. Decide whether the purpose is only insurance or insurance cum investment. For sole insurance, I prefer the term insurance plan.
  2. If your purpose is an investment, then go for other investment options with better returns.

The agent will try to convince you to buy the plan which would be more beneficial to him (not you).

Don’t trust him blindly. Consider all the facts about the plans and match them with your requirements, then decide which plan you should buy.

Also read How to surrender LIC policy

Factors You Should Consider While Buying Life Insurance

1. Do You Really Need a Life Insurance

Life insurance is a way to protect the future, who are financially dependent on you. If this is not the case or you have sufficient sources that would take care of their financial needs, then you should further think about this.

2. Purpose of Life Insurance

You have to decide the primary purpose of life insurance, whether this is insurance or investment. If your purpose is insurance then you should go for a term insurance plan.

In the case of insurance cum investment, you should go for endowment or money-back plans. But if you ask my opinion, I would suggest you, go with term insurance and invest the rest of the money into pure investment plans like PPF investment, equity, or mutual funds.

You would like to check out – LIC Jeevan Shanti Review

3. Value of Life Coverage

Wisely calculate, how much money would be sufficient for your family to meet their all expenses. Include household expenses, children’s education & marriage expenses, and some amount of the medical emergency.

This is not easy to calculate the exact figure but you have to decide on an approximate amount of life coverage.

4. Your Present Financial Condition

A regular premium has to pay at regular intervals as per the policy terms. Ask the following questions to yourself.

  • How much premium can you pay as per your present financial condition?
  • Is the return after maturity will beat inflation?
  • Will my family able to survive on the claim amount?

Choose those plans that would not pay any financial burden on your shoulder. If you are not in the condition to bear the high premium of endowment plans then you should buy a term policy.

5. Tenure of Policy

Tenure of the insurance policy also plays a very significant role. The retirement age minus current age is considered as the ideal tenure of the policy.

You can choose the tenure until the age you would fulfill all the financial needs of your family.

6. Select add-on’s wisely

Add-on is a feature of adding some additional services like accidental insurance or health insurance with life insurance. Insurance companies charge additional for providing add-ons.

Sometimes making an add-on becomes more expensive than the two separate plans. So before adding an additional service compare the premium amount with the separate plans.

7. Compare Policies

Life Insurance companies offer several policies having different features. Consider all the policies and compare the policy features with your requirement then finalize the one.

In most cases, the agents try to indulge your decision towards some specific policy because of their personal benefit. Be aware of such a condition.

8. Check Policy Online

Every insurance company provides an online buy policy facility and at discounted rates. Selling over online saves the agent commission and brings down the overall cost of the policy.

So always compare the product which agents sold with the online available products.

I have covered the reviews of top credit cards in India. If you love to save money using credit cards you can look for the these articles


Always do your math before investing your hard-earned money. Go with a term plan that can handle the monthly bills of your family if you are no more and invest the rest of the money in better return-giving assets like mutual funds, sweep accounts, or PPF.  For insurance plans, I would prefer to go with online products to save money.

What are your thoughts? Tell me in the comments.


46 thoughts on “LIC Agent Commission 2023 – How Much LIC Agent Het Commission for Every Policy”

  1. brother i got to came to ur website through Quora
    really very much useful site
    thanking u soo much for ur hard work and ur efforts

      • Hi Raghav,

        I really good information. However I really pity on you.

        I don’t know what profession you are currently in, but im sure you must be earning well.

        If you’ve got right to earn well for your family, so do other’s.

        They are planning and investment for few people like (u) who may be dont know importance of an investment. At least they are trying to meet their objectives in life to fulfill their family needs and build a strong future.

        If you are not interested please don’t buy. But at least don’t try to demoralize others who actually can build a healthy investment in such a volatile market conditions where saving money is impossible.

        Well I’m not a LIC Agent but i know my relatives and friend who are in this profession and are working hard and helping people SAVING…. And “Saving Money is Generating Money”.

        Sachin Shelar.

        • Really generous advice of you sir, but please note that the author of the article has written disclaimer at various places in his article. So don’t pity him. If you want to pity, then pity those people who in good faith trust these “hard working” Lic agents and as they don’t understand the intricacies of the policy lingo like maturity date, premium paying term etc etc end up losing their hard earned money.

          Why am I so bitter? I am a 30 year old woman who is paying a yearly LIC premiums of Rs. 1.25 lakh in 3 policies. My total life cover is a measly 30 lakhs. Because in 15000/year, I would have had a term insurance of 1 cr. I would have gladly donated 15k yearly to the insurance company for 1cr cover.

          But I am trapped in this LIC policy and its not even my own doing. The “hard working” agent sold these policies to my parents 10 years ago when they were nearing 50, who were shockingly naive. Now these policies are devaluing my money, so I have to close them even at cost of heavy losses, to tune of 1 lakh. Otherwise i would bleed for 10 more years which is the premium paying term.

          Hope my blabbering made some sense

    • तुम लोग लोगों को बेवकूफ बनाते हो और उसके बाद कोई सपोर्ट भी नहीं देते मैं तुम लोगों को अच्छी तरह से जानता हूं


    • ask the name of employee and write complaint in his name in front of him asking his pen and a paper then put it to IRDAi and president as forwarding that this employee doesnot know how to deal with consumers. this is your right. also pass a copy to manager. then return his pen and say thanks to him. this shall pull earth drom his feet and he/she shall feel like to be in depths of earth in a bit of second. see his/her red face. never keep tension on your head pour it to those spreading it.

    • क्योंकि उन्हें तो आप की पहली प्रीमियम से 5% ज्यादा पैसा तो मिल ही जाता है यानी कि आप अगर ₹20000 मिलते रहे हैं तो ₹25000 मिल रहा है.
      मैं तो एक सलाह देना चाहता हूं जब भी LIC की कोई भी इंशुरंस पॉलिसी लेते हैं तो एजेंट से यह जरूर निश्चित कर लें कि वह आपको क्या छूट देंगे हमारे यहां तो कई बार एजेंट 50% तक की छूट दे देते हैं पहली प्रीमियम में क्योंकि उन्हें 110 परसेंट मिल रहा है.

      • Wrong. LIC agent get 90% to 110% in entire 15 yr of policy tenure . It’s like – 25% to 35% on first year , 7.5% next two years ..then 5% every year. This is maximum , in few plan they are getting less than it. If they are giving 25% to you in first year then in a policy of RS. 10000 they will get 40rs. Per month as commission. If policy of 1lakh then RS. 400 approx per month.

        They have no salary only depends on this commissions …

        We should negotiate with them but we should also know true figure of their commission

        If you will negotiate 25% or more then can you expect service from them ?

        Can you go to your work without salary ?

  3. धन्यवाद सर आपने बहुत अच्छी जानकारी दी है मैं अपना बहुत सारा पैसा एजेंट के हाथों बेकार कर चुका हूं और इसी वजह से मेरी कई पॉलिसियां टूट गई आज मुझे बहुत अफसोस है कि अगर यह जानकारी मुझे दो साल पहले मिल जाती तो मेरी मेहनत की कमाई से पैसे बर्बाद ना होते

      • Lic se behtar kuch nahi.Mutual funds mein market ka role,F.d mein RBI ka role,PPF mein rate Kam hote ja rahein hain,Keval lic apke paise ki full guarantee deti hain,Yeh hum logo ki galti hain ki hum log Josh mein as hate Hein aur policy le lete hain.Koi ek bhi udharan hain ki jab lic ne paisa Sahi samay par jitna Dena that,nahi diya ho ?

        • h ek example.. mere ek relative ne meri wife ka life insurance karwa diya, jo house wife h.. term of policy was 18 years.. mene 5 years me 65000 deposit kiye,, jab me policy khatam karne gaya to mujhe mile sirf 40000.. 24000 ka sidha nuksan..

  4. 13 साल के लिये कौन सही पालिसी है कृपया हमें बताया

  5. Very useful article
    I also suggest everyone not to buy endowment plan .
    For insurance purpose only term insurance should be purchased
    I also could not purchase term insurance in the right time ,agents who are generally our ‘friends’ always make us fool

  6. You are here for selling your product..why not you tell about your own profit ratio. I am pretty sure it is more than a LIC agents commission.
    I am a LIC agents and take commission on each policy and give my service for life long.

    there is no service without any remunaration. its not charity its all about business.

    thanks for making fool someone and misguide them.

    • After 2014 Jan. Lic policy will not revive if the policy is unpaid for 730 days/ two yrs. If a policyholders gives 2.5 yrs premium. After two years he wants to revive the policywhat will happen? Inthis case the policyholder will be looser. Same will happens for agents and LIC. What will be the system in future? Plz respond me. Abhimanyu. Lic agent. Bbsr.

  7. Sir i am planning for Jeevan Labh policy from LIC, which is a 16 years policy. My yearly premium will be around Rs. 125000. So now how much will be the agent commission.

  8. Nothing comes free in life.Have you have the courage to ask a medical practitioner how much he is reciprocated by the medicine company or by the private hospitals when your member of the family is hospitalized?

  9. THE ARTICLE IS WELL WRITTEN! My only point is yes the agent makes money out of selling the plans but this is what he is servicing you for. Similar can be the case of a chemist selling medicines, everyone knows where to get the medicines from but people visit doctors to get their expert opinion. Same is the case here. You think the insurance company will not upsell or mis-sell its customers. The customer has to be smart enough to ask relevant questions to the agents, seek his advise and in case he is not responsive file a complain. But to do away with the agent completely will only become problematic to the investor.

  10. ये कमीशन केवल LIC मे ही मिलता है या फिर सभी insurance companies मे होता है? अगर हाँ तो वहाँ कितना percent होता है कृपया बताए। क्योकि आजकल बहुत सारी private companies भी हैं। वहाँ से insurance लेते वक्त भी कमीशन की बात करनी चाहिए????

  11. Dosto her Kam ke badale commission milta hai 50 _ 70 percentage medicin me cloth me same and banking mutual fund property selling me gold etc per her chize purchase ki jati Bima agent apna pura time knowledge costmer Ko service me deta hai aur milta wo organisation deta agent self se nahi leta hai

  12. I have few questions against lic
    1 – why I can’t withdraw my installment amount at any point of time?
    2 – Why the surrender value is so less?
    3-what if anyone’s income stopped, how he can pay for the policy?
    4-i agree to pay for the processing charges and or other charges while withdrawing the policy.
    i think this question comes to many of the Indian citizens. The government or lic should think about it.


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