LIC Agent Commission – How much commission does the LIC Agent receive? FINANCIAL PLANNING

As you read this post, I assume that you are either a LIC agent or would like to know how much commission the LIC agent receives? In any case, you will find complete information about commission rates for LIC agents here.

The LIC agent is one of the most respected professions in India. LIC agents are officially designated insurance advisors to help you make an important life decision – buying life insurance. However, only a few LIC agents are completely behind the commission income. You mis-sell insurance policies by making a wrong commitment.

The usual sales speech you may have heard from the LIC agent is: It is a very good plan, with full coverage and very good returns. Trust me, you should buy this policy. I am your benefactor and you need this policy.

Read also – Pay LIC Premium Online via the LIC portal, mobile app & Paytm

This is one way, there are many other ways that the LIC agent does, such as:

  • Trust me, I also bought this insurance plan.
  • A promise of high returns
  • Limited availability of the policy
  • Guaranteed return more than time deposit
  • Cashback offer of the first premium or commission
  • Many tax benefits

Well, LIC agents are trying to use any marketing technique to sell a policy. The only reason for this is commission income. Which is not even, it is year after year.

Now let’s take a look at the LIC Agent Commission tariff for various insurance policies.

The commission for LIC agents is nothing more than money that a LIC agent receives from the insurance company for the sale of the policy. The commission for LIC agents depends on the duration of the policy and the type of insurance policy (capital resources, money back, etc.). The higher the terms, the better a commission.

LIC Agent Commission

In this article you will learn

Commission rate for LIC agents

LIC foundation plan

Capital life insurance is a life insurance policy that offers life insurance protection. Apart from this foundation plan, you also pay a lump sum at the end of the term. Below are some popular LIC foundation plans and the applicable commission rate.

  • LIC Jeevan Utkarsh
  • LIC Jeevan Pragati
  • LIC Jeevan Labh
  • LIC Single Premium Endowment Plan
  • LIC New Foundation Plan
  • LIC New Jeevan Anand
  • LIC Jeevan Rakshak

The commission rate applicable to the foundation plan is given in the following table:

Premium payment term 1st year commission Commission from the 2nd and 3rd year Further 4th year
2 to 4 years 5% 2.25% 2.25%
5 to 9 years 10% 5% 5%
10 to 14 years 20% 7.50% 5%
15 years and older 25% 7.50% 5%

LIC children’s plan

The children’s plan was specially developed to meet the increasing educational, marriage and other needs of growing children.

Premium payment term 1st year commission Commission from the 2nd year
2 to 4 years 5% 2.00%
5 to 9 years 8th% 5%
More than 9 years 10% 5.00%

LIC money back plan

Money-back plans are plans in which an insured person receives a percentage of the sum insured at regular intervals instead of receiving the lump sum at the end of the term. Below are some popular LIC money back plans and related commissions.

  • LIC New Money Back Plan – 20 Years
  • LIC New Bima Bachat
  • LIC New Children money back plan
  • LIC Jeevan Tarun
Premium payment term 1st year commission Commission from the 2nd and 3rd year Further 4th year
According to plan fifteen% 10% 6%
12 years fifteen% 8th% 6%

From the top it is very clear that LIC insurance agents deserve a high commission.

For example, if someone buys a LIC Jeevan Utkarsh Policy Endowment Plan for 15 years or more. In the first year, the LIC agent receives 25% of the premium. This means that if an insurance premium is Rs. 10,000, an agent will receive Rs. 2,500 in the first year.

For the second and third year, the agent receives 7.5% (Rs.750) and for the remaining year 5% (Rs.500) until the plan is due. In 15 years, the LIC agent will receive approximately 10,000 rupees as an insurance commission.

Read Also – Top 7 Best LIC Guidelines for 2020

Note – The example above is for illustration only. The broker’s income varies depending on the term and insurance premium.

If you plan to become a LIC agent, complete the following steps to become a LIC agent.

How do I become a LIC agent? – Recruitment of LIC agents

Offline method

  • Visit the nearest LIC of India office and ask about the agent’s requirements. You will be asked about your educational background and age. If you have passed HSC and have exceeded the minimum age limit of 18, you can become an agent. You must complete a mandatory 25-hour training course.
  • After completing the training, you will need to take the LIC Pre Recruitment exam, which is conducted by the Indian Insurance Supervision Agency (IRDAI).
  • As soon as you have completed the test, you will receive a forward order and an ID card to work as an insurance agent. You will be appointed LIC development officer. Your job is to sell insurance policies for which you earn a commission for each insurance policy.

Online method

  • You can also become a LIC agent by applying online. visit LIC agent recruitment Website.
  • Log in as a new user.
  • You have to enter your mobile phone number and your captcha text.
  • Click Submit to take an action. You will need to enter a password on the next page.
  • Your ID will be registered.
  • You have to upload the document and request the test date.
  • Another alternative is to use the LIC Agent Recruitment App, which is available on Google Play.

If you are on another page where you want to take out an insurance policy, there are a few important points to remember to avoid incorrect bookings.

Points to consider before buying an insurance policy

  • Check the insurance policy website and know the benefits of the policy.
  • Ask the agent about the standard mapping / calculation.
  • Study the product document yourself.
  • Check exit clause and limitation of the insurance policy.
  • Make sure you are underinsured before buying an insurance policy.

Note – The purpose of this post is to make readers aware of how much commission the LIC insurance agent earns with a single policy, the commission rate of the LIC agent, and the misselling carried out by agents to generate more commission income. I am not against the LIC agent or the LIC agent’s income.

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Postgraduate course at Babcock University (BU) : Nigerian Education