LIC Agent Commission Structure
How LIC advisors actually get paid — first-year commission, renewal income that continues for the life of every policy, and bonus commission. Use the calculator below to estimate your own earnings.
Earnings calculator
Year 1 income
₹4,20,000
incl. 40% bonus commission
Year 2 income
₹5,10,000
new business + renewals
Year 5 income
₹7,20,000
renewal book compounding
Based on ₹12,00,000 of annual premium written at 25% first-year, 7.5% renewal in years 2–3 and 5% from year 4. This is an illustration, not a guarantee of earnings — actual commission depends on the specific plan, premium paying term and your persistency.
Commission rates by plan type
| Plan type | Premium term | 1st year | Yrs 2–3 | Yr 4+ |
|---|---|---|---|---|
| Endowment / Whole Life | 15 years and above | 25% | 7.5% | 5% |
| Endowment / Whole Life | 10 to 14 years | 20% | 7.5% | 5% |
| Money Back | 15 years and above | 20% | 7.5% | 5% |
| Term Assurance | All terms | 15% | 5% | 5% |
| Single Premium | One-time payment | 2% | 0% | 0% |
Rates are indicative and vary by plan. Commission is regulated by IRDAI and set by LIC per product — confirm the applicable rate for any specific plan before relying on it. Nothing on this page is a guarantee of earnings.
Commission questions
How much commission does an LIC agent get?
Commission depends on the plan and its premium paying term. On long-term endowment plans the first-year rate is the highest band, with renewal commission continuing for the life of the policy. Protection and single-premium plans pay lower rates.
Do LIC agents earn commission every year?
Yes, on regular premium policies. You earn a first-year commission when the policy is sold, then renewal commission each year the client continues paying — which is why an established LIC agency produces income from business written years earlier.
What is bonus commission for LIC agents?
Bonus commission is an additional payment calculated as a percentage of your first-year commission, currently illustrated here at 40%. Eligibility conditions apply and are set by LIC.
Is LIC agent commission taxable?
Yes. Commission income is taxable as business or professional income, and TDS is deducted at source. You can claim legitimate business expenses against it. Speak to a chartered accountant about your own situation.