[Updated] LIC Agent Commission Chart 2016 – LICIndia.in
LICindia.in – If you have ever bought any LIC Insurance Policy or LIC Term Plan, you must have contacted your LIC agents. LIC agents are official insurance advisor from Life insurance Corporation of India, who explains you the LIC Policy and in return, they earn from commission (some percentage of your LIC premium). Many of us must be curious about how much a LIC agents gets Commission? What is LIC agent Commission Rate/Chart? So, here is we are explaining the LIC Agent Commission, how they earn, how much they earn with each policy selling and this will also helps those people who are thinking to join LIC as insurance Advisor (Who wants to become LIC Agent).
LIC Agent Commission Chart 2016
You must be noticing that nowadays, many people has started LIC agent job. Its good and perfectly fine. But the real reason behind being LIC agent or taking LIC agency is LIC’s High Commission pay structure. So, here we are explaining the LIC Agent Commission, year wise and premium term wise LIC agent’s commission rate. Hope it will help you to understand the earnings of LIC agents.
|Premium paying year||1st year Commission||On 2nd and 3rd year||Subsequent year|
|12 years or more||35%||7.5%||5|
Premium paying year = No of policy term.
How to understand the LIC Agent Commission Chart?
Well, its quite easy. We have mentioned the in table clearly. You can check the policy term (total no of years customer going to pay commission) and respected commission in percentage. i.e Mr. X bought any endowment plan of LIC, for 5 year 10 year term. In that case, Agent will get 30% of first year’s premium. So, if Mr.x paying Rs.1 lac of yearly premium, his agent will get Rs.30k on the first year premium and then after 7.5% on 2nd and 3rd year too.
So, its recursive income for lic agent. Now you must understand why many people are turning into LIC agent.
Well, above chart is not same for all plans. There are many plans like Single premium plans and pension plans, which have different Commission structure.
LIC Agent Commission on Single Premium and Pension Plan Products
For Pension Plans LIC agent commission
If any LIC Pension Plan has single premium plan, than Agent
will get 2% of premium amount as commission. And other than Single Premium plan, 7.5% commission on first year and than after 2% on each renewal premium.
Other than Pension Plan (but Single Premium Policy)
If LIC agent sell any single premium insurance policy which is not pension plan, than he/she will get 2% commission. For all other insurance policy commission, you can refer to above mentioned table.
LIC Agent Commission Calculator
Miss Sejal is housewife. She is interested for buying Endowment plan for herself. She calls her LIC agent and LIC agent explains her Best LIC Term Plan in detail. LIC agent refers to her requirements, her age and upon that, agent offers her a good Term plan for 20 years. After she got satisfied answers from LIC agent, she got agreed for buying LIC term plan for 20 years for Amount Rs.x. For which, she need to pay yearly Rs.1 lac as premium.
So, here is agent’s commission breakup. On the first year, LIC Agent will receive Rs.35000 (35% of yearly premium) as commission. On 2nd year and 3rd year, he/she will receive Rs.15000 (7.5% of yearly premium) as commission. And on 4th to 20th year, LIC Agent will receive Rs.85000 (in total). So, the total earning of LIC Agent in 20 years is Rs.1,35,000/-.
Yes, for selling a single LIC term plan, agent will receive commission for 20 years and can earn 135% more than yearly premium. You must be looking forward to join LIC agent Job. Don’t worry, check out the below mentioned guide to become LIC Agent.
How to become LIC Agent or LIC Insurance Advisor?
If you are graduate or any of your family members is graduate passout, you can join LIC as Insurance Advisor. Just contact your nearby LIC office’s sales team. They will guide you for how to join LIC agent. There are no other criteria than this. LIC will refer you to senior officer who will give you training and will let you know how to sell LIC policy. Your earning will be credited in your bank account as soon as your customer pays his/her LIC premium (yearly/half yearly).
There is no Salary given to LIC Agents. You earn only from your policy selling commission. But trust me, you can earn more than you imagine. One of my friends cum LIC agent has bought Audi A4. Its real, you can do it too. You just need to sell more policy at higher premium rate. All the best!