LIC Agent Commission Structure 2025 — What You Actually Earn
6 min read · June 2026 · By InGrowIQ Team
Most new LIC agents are told they can earn “up to 35% commission” — but nobody explains the full picture. First-year vs renewal rates, bonus commissions, persistency bonuses, and how the numbers actually add up to a real annual income.
This article breaks down exactly how LIC agent commissions work in 2025 — no jargon, no vague numbers.
The two types of commission every LIC agent earns
First Year Commission (FYC)
Paid when a customer buys a new policy. This is your highest rate — typically 20–35% of the annual premium depending on the plan. It is paid in the first year only.
Renewal Commission
Paid every year the customer renews their policy. Much lower than FYC — typically 5% for most plans. But this compounds across your entire book as you add more policies each year.
Commission rates by plan type (2025)
| Plan | First Year | Renewal | Notes |
|---|---|---|---|
| Jeevan Anand (Table 915) | 25% | 5% | Most popular endowment plan |
| Jeevan Umang (Table 945) | 25% | 5% | Whole life with annual payout |
| Term Plans (Tech Term etc) | 35% | 5% | High first-year, low premium base |
| Money Back Plans | 25% | 5% | Regular survival benefits |
| Children's Plans | 20% | 5% | Jeevan Tarun, Jeevan Lakshya |
| Pension / Annuity Plans | 7.5% | 2% | Lower commission, high ticket size |
| Micro Insurance Plans | 10% | 2% | Low premium, rural segment |
Note: Rates are indicative based on IRDAI guidelines. Exact rates may vary by plan year and are subject to LIC updates.
Bonus commissions — the income most agents don't talk about
Persistency Bonus
LIC pays a bonus if a high percentage of your policies renew on time. If your 13-month persistency is above 75%, you earn an additional bonus on your renewal commissions. Top agents with 90%+ persistency earn 20–30% more than their base renewal commissions.
Club Membership Bonuses
Agents who meet annual targets qualify for MDRT (Million Dollar Round Table), Platinum Club, or Gold Club. Each comes with additional incentives, foreign trips, and recognition bonuses from LIC.
Group Insurance Bonus
For group policies sold to employers, commission structures are different and often negotiated. For policies above ₹25 lakh annual premium, commissions are between 3–7% but on very large ticket sizes.
What LIC agents actually earn — realistic examples
New agent, 2 years in
50 active policies, avg premium ₹20,000/year
New Policies
~₹1,50,000 (new policies)
Renewals
~₹50,000 (renewal @ 5%)
Total
~₹2,00,000/year
Mid-level agent, 5 years in
200 active policies, avg premium ₹25,000/year
New Policies
~₹3,00,000
Renewals
~₹2,50,000
Total
~₹5,50,000/year
Senior agent, 10+ years
500+ policies, avg premium ₹30,000/year
New Policies
~₹5,00,000
Renewals
~₹7,50,000
Total
~₹12,50,000+/year
The key to growing your commission income
The math is simple: renewal commission compounds over time. Every policy you sell today becomes passive income next year and the year after — as long as the customer renews.
This means the single most important thing you can do to grow your income is protect your renewal rate. An agent with 500 policies at 90% renewal earns significantly more than one with 500 policies at 70% renewal.
Tracking renewals, sending timely reminders, and following up before due dates is not just good service — it directly determines your annual income.
Track renewals and protect your commission
InGrowIQ shows every policy renewing in the next 30, 60, and 90 days — so you never lose a renewal commission to a lapse.
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