How to become LIC Agent – Salary, Commission and Benefits

Life Insurance Corporation of India or LIC is an Indian state-owned insurance and investment group owned by the Government of India. It was founded in 1956 after the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in the country. Getting a job as LIC agent is a lot about skills, and thus, in this article, we will look through the following points about how to become LIC agent.


  1. How to become a LIC Agent
  2. LIC Agent Salary & Commission
  3. LIC Agent Benefits


1. How to become LIC Agent

How to become LIC Agent

LIC agent is the one who encourages and motivates the customers for the purchase of the LIC policy. After spending enough time, these agents begin to earn a good enough amount of money.

To know about the qualification, age, experience, and skills which are required for becoming a LIC agent, one needs to look through the following points. Becoming an LIC agent is both tough and easy. It depends upon your personal skills and aptitude. I will now describe various steps on how to become LIC agent.

Further, anyone above the age of 18 years and has successfully completed Secondary School Certificate (SSC), it is equivalent or higher, can become an LIC agent.


Step: 1- Go to the LIC Agent Portal

LIC Agent Portal

a) The first step to becoming LIC agent is to register with the corporation through the LIC portal.

b) One needs to provide basic details, including the name, village, town, city, or locality where one resides, contact number, email ID, and educational qualifications.

c) One can also include a concise summary of two or three sentences about reasons why he or she wishes or searches for how to become LIC agent.


Step:2- Pass the Interview

LIC Agent Interview

The local Development Officer or Branch Manager of the LIC office will interview the applicant. There are no particular questions for which one needs to prepare for this step. The officer will ask questions about oneself, test the general knowledge, and ask a few questions related to money, banking, and finances.


Step:3- Free Training

LIC Agent Training

The step after this interview is free training; the officer will ask the applicant to enroll for a free training course. Usually, this will be conducted at the LIC office.

The training course is for a 25-hours duration. It ranges over three to four days. During the course, the applicant will learn everything about the life insurance business and money finance.

One will also learn about the Insurance Regulatory and Development Authority of India (IRDAI) and its rules related to life insurance.

IRDAI is an organization of the Indian government that regulates the insurance business in India.


Step:4- Register for Exam

LIC Agent Exam

Upon completing the interview and training, the next step is to register for the LIC Agent Test (PRT). There are two ways to register for LIC Agent PRT.

  • Online: Registering at the IRDAI portal.
  • Offline: Registering with the nearest LIC branch office.

One needs the following documents to register:

  • Four passport-size colored photographs.
  • Photocopy of the SSC or equivalent or highest education degree mark sheet.
  • Photocopy of Permanent Account Number (PAN) Card.
  • A canceled Cheque.
  • Before applying for the Pre Recruitment Test for becoming the LIC Agent, get the PAN card from Income Tax Department.


A. Fees for LIC Agent Exam

Fees for online registration are higher than for offline registration. The fee structure is given below:

a) Online Registration & Exam

  • Registration Fee: INR 150.
  • Online Training Fee: INR 150.
  • Study Material/ Book: INR 200.
  • Pre Recruitment Test (Online) fee: INR 500.

After the online registration with IRDAI, applicants will get a Unique Reference Number and password.

b) Offline Registration & Exam

  • Registration Fee: INR 150.
  • Study Material/ Book: INR 200.
  • Pre Recruitment Test (Offline) Fee: INR 500.


B. Studying for LIC Agent Exam

LIC Agent Exam

Studying for the LIC agent entrance exam – also called the LIC agent Pre Recruitment Test is a simple one.

Visit the Insurance Institute of India website and download the study material. The book from IRDAI/ LIC is also available.

Reading lots of newspapers and magazines to sharpen general knowledge would also be helpful.


C. LIC Agent Exam Syllabus

LIC Agent Exam

The LIC syllabus consists of English and Hindi languages with some basic mathematics and general knowledge.

It covers various rules, regulations, and laws governing the life insurance business in India. IRDAI makes these laws.

One needs to complete at least 100 hours of study before appearing for the LIC agent exam or the Pre Recruitment Test.


D. LIC Agent Exam Characteristics

This exam is called Pre Recruitment Tes or the LIC agent’s exam. The characteristics of the exam are given below:

  • This exam is of 60 minutes in duration.
  • There are 50 questions.
  • These questions are objective type.
  • Each question is worth one mark. 

One needs to score at least 18 marks in the LIC agent examination to qualify.


E. Become LIC Agent

Upon completing the Pre Recruitment Test, one is ready to become the LIC agent. LIC will issue an appointment letter to the authorized agent. The agent also gets a license or the LIC Agent Visiting Card from IRDAI to perform the duties as a LIC agent.


2. LIC Agent Salary & Commission

Salary & Commission

Following is a brief of LIC Agent Salary & Commission:

  • LIC Agent also gets a monthly stipend of INR 80 to 90 lakhs per year from LIC. This is due to the high cost of living in metro cities of India.
  • The agent gets 35 percent of premiums paid during the first year by life insurance policyholders.
  • If the agent works harder and gets more people to buy LIC life insurance, he and she can get up to a 40 percent bonus on first-year commission. 
  • Retirement benefits or the gratuity up to INR 200,000 will be given if the agent completes the business guarantee of the 15 years. 
  • Hereditary Benefits are also available for families if the LIC agent dies for any reason. To qualify for this, LIC agents should tell the life insurance policies worth INR 100,000 in the premium before death. Hereditary Benefits are given to the nominee or legal heirs of the LIC agent.
  • If the agent has generated a premium worth INR 200,000 and stop working for LIC or lose agency, the corporation will continue to pay its commission.
  • The income rises automatically because of selling more of the LIC life insurance policies when the agent works as an LIC agent. Plus, there are no upper limits to your income.
  • During the next two years of selling a policy, the agent will get a commission at the rate of 7.5 percent of the total annual premium that a LIC life insurance policyholder pays.
  • From Year-4 of policy, the agent will get five percent of the annual commission paid to LIC by the person whose life he or she has insured.
  • LIC provides a complimentary life insurance cover for its agents. Their families will receive insurance payouts after the premature death of the LIC agent.


3 LIC Agents Benefits


There are several perks of becoming the LIC Agent:

  • Entry to Branch Manager’s Club for the newly appointed LIC agents who perform well.
  • Divisional Manager’s Club entry if you perform well as Branch Manager’s Club member. The club status increases with performance.

Entry to the below-mentioned domains are also available:

  • Zonal Manager’s Club
  • Chairman’s Club
  • Corporate Club
  • Interest-free vehicle loan.
  • Low-interest home loan.
  • Office maintenance allowance and financial benefits.
  • Furniture allowance.
  • Advance or bonus for festival celebrations
  • Reimbursement for mobile and landline telephone bills.
  •  LIC pays the agent commissions on premiums for policies he or she sells.
  • The agent can also sell LIC policies by opening an online agency.
  • The ID or visiting card issued by LIC for agents is considered valid, which makes them the government-issued proof of identity.
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Pranjali is currently pursuing Literature with Psychology for my graduation from the University of Delhi, She has an admiration for writing and therefore wishes to bring it to the professional use. Writing of any type interests her thereby, adding sensitivity to the words in her life.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Pranjali is currently pursuing Literature with Psychology for my graduation from the University of Delhi, She has an admiration for writing and therefore wishes to bring it to the professional use. Writing of any type interests her thereby, adding sensitivity to the words in her life.

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