1. What is LIC Agent Commission?

LIC (Life Insurance Corporation) agents earn commission based on the premiums paid by policyholders. The commission rate varies depending on policy type, duration, and other factors. This calculator helps agents estimate their earnings.

2. How Commission is Calculated

The basic commission calculation formula is:

Where:

• \( Premium \) — Policy premium amount in Indian Rupees (INR)
• \( Commission\ Rate \) — Percentage rate set by LIC for the specific policy

Explanation: The commission is a percentage of the premium amount paid by the policyholder.

3. Commission Rate Structure

Details: LIC commission rates typically range from 2% to 40% depending on:

• Policy type (term, endowment, ULIP, etc.)
• Policy term (short-term vs long-term)
• Premium payment mode (yearly, half-yearly, etc.)
• Agent's seniority and performance

4. Using the Calculator

Tips: Enter the premium amount in INR and the applicable commission rate percentage. The calculator will compute the commission amount.

5. Frequently Asked Questions (FAQ)

Q1: How often is commission paid?
A: Commission is typically paid when the premium is received by LIC, usually annually for yearly premium policies.

Q2: Are there different rates for first year vs renewal?
A: Yes, first-year commissions are usually higher than renewal commissions.

Q3: Is commission taxable?
A: Yes, commission income is taxable under Indian tax laws.

Q4: Can agents get commission on their own policies?
A: No, LIC agents cannot earn commission on policies where they are the policyholder.

Q5: How can I find the exact commission rate for a policy?
A: Exact rates are provided in LIC's commission charts which vary by product. Consult your LIC branch for current rates.