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LIC Agent Commission Calculator 2026: Policy-Wise Rates

By LicBaba Expert Team5 min read

Ever wondered how much an LIC agent earns when they sell a policy? Or are you an agent looking to calculate your upcoming payouts? Use our interactive commission calculator to find exact payout structures.

LIC agents operate on a commission-based model. The commission structure is strictly regulated by IRDAI and LIC. It is designed to reward agents handsomely in the first year to cover acquisition costs, while providing a smaller, steady "renewal commission" in subsequent years to encourage agents to keep policies active.

Interactive Agent Commission Calculator

Select the policy type, term, and annual premium below to instantly calculate the exact base commission, bonus commission, and renewal payouts.

Agent Commission Calculator
20 Years
5 Years35 Years
₹25,000
₹5,000₹5,00,000
Commission Payout Structure
Total First Year Commission
₹8,750
Includes 25% Base + 40% Bonus on Base
2nd & 3rd Year
₹1,875
@ 7.5% of premium
4th Year Onwards
₹1,250
@ 5% of premium
ℹ️ Bonus commission (40% of 1st year commission) is generally payable to agents achieving specific business targets as per Club Rules.

LIC Commission Chart Explained (Endowment Plans)

For traditional endowment plans like Jeevan Anand, Jeevan Labh, or Jeevan Lakshya, the commission depends heavily on the Policy Term (PT). The longer the term, the higher the first-year commission.

Endowment Commission Rates
Policy Term1st Year Base1st Year Bonus2nd & 3rd Year4th Year Onwards
15 Years and above25%40% of Base7.5%5.0%
10 to 14 Years20%40% of Base5.0%5.0%
5 to 9 Years10%40% of Base5.0%5.0%

What is Bonus Commission?

The "Bonus Commission" is an extra incentive paid on top of the first-year base commission. It is typically calculated as 40% of the base commission. For example, if the base commission is 25% of the premium, the bonus commission is 40% of that 25% — which equates to an additional 10% of the premium. Therefore, the total maximum first-year commission an agent can earn on a 15+ year term policy is 35% of the premium.

Note: Commission is always calculated on the base premium amount, excluding GST and any late fees.

Frequently Asked Questions

For regular endowment policies with a term of 15 years or more, an LIC agent typically earns 25% of the first-year base premium as basic commission. They may also earn an additional 40% of the basic commission as a bonus (effectively making the total first-year commission 35% of the premium).
Yes. Agents receive renewal commission as long as the policyholder pays the premium. For regular policies (term 15+ years), the renewal commission is 7.5% for the 2nd and 3rd years, and 5% from the 4th year onwards.
Single premium plans like Single Premium Endowment or Jeevan Shanti have a much lower commission rate because the premium is paid only once. The typical agent commission for single premium policies is a flat 2%.