How to become LIC Agent in India – What are their Salaries, Commissions and Perks?

How to become LIC Agent and their Commissions, Salaries and PerksHow to become LIC Agent in India?


Many of you might be thinking of becoming your own boss. If you are planning to become an insurance agent, then you can try becoming LIC agent. LIC Agent sells insurance policies of the Life Insurance Corporation of India (LIC India). There is set of process to be followed to become LIC Agent. In this article we would detail step-by-step on how you can become LIC Agent. We would also detail how much salaries, commissions and perks approximately they might expect if they become LIC Agent.

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What does an LIC agent do?


Being a Life Insurance Agent is an extremely powerful and prestigious job as it helps people secure the lives of their loved ones in case of any unexpected mishap in the family.  Along with providing a solution to the situations, which are faced, by millions of Indians it also has additional perks like attractive salary and commissions. Working as a LIC agent is possible for all interested people as part-time of a full-time job once to fulfill the requite formalities which would be discussed further.

How to become LIC Agent?


If you want to become an LIC agent and possess the right skills and aptitude the tough journey can become easy.

Step–1: Eligibility – You need to be at least 18 years old and have completed the Secondary School Certificate (SSC), it’s equivalent or higher can become a LIC agent.

Step-2: Meet LIC Development Officer – To become an LIC agent, you need to visit any LIC office and meet the Development manager and express your intent to become LIC agent.

Step-3: Have basic Interview – The local Development Officer / Branch manager will take a first level interview to ensure that you have the basic knowledge as well as the right communication skills to represent yourself as an LIC agent. Remember to be professional to move ahead to the next step.

Step-4:Training – Once you are shortlisted, you will be enrolled for a free 25-hour training session, which would be spread over 3-4 days. Such training is conducted at the LIC offices / divisional training centre and would provide you the important details you need to know as a LIC agent.

Step 4: Register yourself for the exam

Once the training is over you need to enroll yourself for the LIC agent test i.e. pre-recruitment examination, which can be done online at the IRDAI portal.

Step 5 – Appointment letter and ID card

On successful completion of training, you would be provided with appointment letter and ID card as LIC agent. Your development manager would provide further guidance on how you can be successful as LIC agent.

You can apply for LIC agent if you are okay to proceed.

What documents required during the process of becoming LIC agent?


The documents required include:

Four passport-size color photographs.

Photocopy of your SSC or its equivalent or higher education degree mark sheet.

Photocopy of Permanent Account Number (PAN) Card.

Canceled Cheque.

There would be fees for online training, buying study material and for exam.

Once you complete the process, you would get a Unique Reference Number (URN) and a password.

You will be notified about the examination date. You can visit Insurance Institute of India (III) website and download the study material. Plus, you have the book from IRDAI/ LIC.

The material is available in both English and Hindi. After you complete 100 hours of studies you are almost all set to take the Pre Recruitment test.

At the exam:

This exam is of 60 minutes duration.

You will be given 50 questions.

These questions are objective types- meaning you have to select the right one from the given choice.

Each question is worth one mark. Meaning, the entire test is for 50 marks.

You need to score at least 18 marks in the LIC agent’s examination to qualify for work. The more marks you score, the better.

Once you have cleared the exam, you get an appointment letter, apply for the insurance agency license from IRDAI before getting into this business.

Once all these steps are done, you are a LIC agent now. Congratulations!!

What are the salaries, perks and benefits an LIC Agent expects?


These inputs are provided based information available online. These might not be 100% accurate, but it would help you to know how much you can potentially earn if you opt for LIC agent.

Once you are an authorized LIC agent you get:

1) LIC agents can get up to 25% of premiums paid during the first year by life insurance policy holders. This includes ULIPs too. This would also depend on plan type i.e. endowment plan (commissions are higher), child plans and other life insurance plans.

2) For year 2 and year 3 of the policy, you will get a commission at the rate of 7.5 percent of the total annual premium that a LIC life insurance policyholder pays.

3) From Year-4 of policy, the amount will be 5% of the annual commission paid to LIC by the person whose life you have insured.

4) Retirement benefits or gratuity up to Rs 300,000 if a business guarantee of at least 15 years is completed.

5) Hereditary Benefits are available for families if the LIC agent dies for any reason.

6) If you have generated a premium worth Rs 200,000, LIC will continue to pay you the commissions even if you stop working with them.

7) The more policies you sell, the more you earn. There are no upper limits to your income.

8) LIC provides a complimentary life insurance cover for its agents.

Other benefits:

Entry to the branch managers Club.

Entry to Divisional Managers Club.

Entry to Zonal Managers club.

Entry to Chairman’s Club.

Entry to Corporate Club.

Interest-free vehicle loan.

Low-interest home loan.

Office maintenance allowance.

Furniture allowance.

Advance for festival celebrations.

Reimbursement of mobile and landline telephone bills.

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What are the hidden things in LIC Agent, which no one would tell you up front?


Although becoming a LIC agent is simple as compared to the benefits it has, here are a few things one should know.

1) One needs to work hard and invest in a lot of time to earn income. This is so because the level of competition is increasing and with increasing investment opportunities it is difficult to get clients to take the LIC policies.

2) After the changes in Budget 2020 regarding the withdrawal of deductions for individuals, selling policies (which are so called wealth creation insurance plans) for tax saving is all the more difficult. There are also chances that the claims are rejected due to various reasons, which might make your earnings more difficult than it seems superficial.

3) As consumer awareness is increasing along with increasing life expectancy because of better technology and health care, people prefer other modes of investment rather than life insurances.

All these factors might make it difficult for a LIC agent to convince people at large to buy a policy to insure their lives, which might make the work more cumbersome in this economy, which is flooded with policies from both public and private sectors.

Conclusion: There are thousands of success stories who earned lakhs of rupees as LIC agent. If you are passionate about taking such profession, go through all the pros and cons and then choose this. Don’t go for accuracy of the above perks and incentives. These are just an indicative nos and you can get more than that if you are successful as an LIC agent.

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Suresh KP

How to become LIC Agent in India

Suresh KP
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13 comments

  • Sivaraman

    Great article sir. This can be our secondary income once we attain a basic financial freedom. But I heard there is target every year and if not achieved agency will be cancelled. Please throw some light on this as well if you have any idea

  • Sadashiva

    Gratuity has been enhanced to Rs 300000.
    I’m working in LIC as Development Officer in Bangalore. If anyone is interested to join LIC as an agent please do contact me.I will be happy to help you.

    • Thanks for your valuable inputs. I have updated the gratuity amount in our article itself. Do you see any additional benefits beyond I have indicated. This would help aspiring LIC agents to give accurate info.

  • Jayapal

    I understand part of the commission has to be paid back to LIC officials as bribe. Aspiring LIC agents should consider this point also. Will LIC change to better after disinvestment at least?

  • Ajai Kumar Chhetri

    I have passed IRDA Exam in 2018 and am working in a private Life Insurance Company.
    I would like to leave private Life Insurance Company and work in Life Insurance Company. Can I do that.

    • Ajai, There is no separate exam for LIC alone. One has to pass IRDA insurance exam. Since you have already passed, pls approach any nearby LIC office to get more info. Once you are comfortable, then you should plan to resign in private insurance company

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