mail-box-lead-generation

written by | August 1, 2022

LIC Agent Salary, Job Role, and Benefits in India

×

Table of Content


You may have heard about how much you can earn from selling life insurance in India, but you might wonder if those figures are too good to be true. It's important that you understand the benefits of selling life insurance in India, especially as an LIC agent. You also must know what salary you can expect as a part of your compensation package from this line of work. Continue reading below to learn more about the LIC agent salary in India and how LIC agents are compensated for their work.

Did you know? The average LIC Agent income in India ranges from  0.3 lakhs to 4.0 lakhs per year for individuals with less than one year of experience.

LIC Agent Income and Job Scope

LIC agents are typically employed by local LIC branches to perform various roles. The scope of work includes preparing new policies, renewing existing policies, enquiring about policies, and delivering them to customers. LIC agents are also responsible for receiving payments from customers. Their salary depends on seniority but can range from 10,000 to 25,000 per month or more for senior managers. LIC agent salary per month ranges from 30,000 to 50,000. LIC agent income can be good if you find the right company with good benefits and commission.

LIC Agent Job Salary Structure 

There are numerous presumptions about LIC agents' salaries, and applicants frequently inquire about how much LIC agents are compensated. Here is some information to help you understand LIC agent commission for successful sales, fixed monthly payments, etc.

According to statistics, the average LIC agent monthly salary varies from 39,200/- to 67,000/-. The estimate varies according to the types of policies an agent sells and the number of insurance premiums by policyholders. As a result, an insurance agent's job doesn't end with selling a policy. They have to keep in touch with their clients to ensure regular payments of their due premiums. It increases the amount of commission and money paid to LIC officials.

However, apart from LIC agent salary, they qualify for several other benefits as their business expands. Membership, low or no-interest loans, free medical insurance, gratuity, and other advantages are available to them.

The commission on old LIC policies decreases in the second and third year to 7.5%. It is further reduced to 5% for the remaining term. If you give the company a minimum of 2 lakh in business, you can continue to earn this commission for the duration of the policy.

Also Read: Guide on How to Calculate PF on Salary? Steps to Calculate the EPF Amount

Basic Salary Commission

Basic salary – The basic salary is calculated every month and depends on three factors: 

i) Number of policies sold

ii) New business premium value and 

iii) Size of policy (total sum assured)

Hence, to calculate the LIC agent salary per month, consider the above-mentioned factors as well. 

LIC agents generally get paid every two weeks, so divide your monthly amount by two. For example, if you're getting paid 15000/- per month as LIC agent salary, then you'll make 7500/- after dividing it by two for each pay cheque (3750/- for each pay cheque). LIC agents who have just started working with the company are usually eligible for the first-year incentive bonus, ranging from 25% to 75%. 

Also Read: How to Calculate a Salary Pay Raise? | Formula, Steps & Factors

Starting Your Career as an LIC Agent

If you're just starting and looking for your first job, there are a few things to consider when searching for an LIC agent position. First, if you have previous experience in sales or insurance, this will make you more valuable to prospective employers. If you don't have much experience, but can offer valuable skills like advanced IT knowledge or strong customer service skills, that could prove advantageous. The main thing is to figure out what skills will be most valuable to employers at any given point and how your experience might align with that. The final task is to research the LIC agent income that comes with this position.

Benefits of Being an LIC Agent

The following are the top five advantages that LIC provides to its officials:

  1. Becoming a Part of an Effective Group: Becoming an agent with LIC gives you a chance to become a member of the country's best team of life insurance providers. LIC helped 4,021 representatives to contribute to the Million Dollar Round Table in 2015, a worldwide message board honouring the world's greatest financial advisors.
  2. Attractive Recompense: LIC has one of the finest rewards systems in the industry, which covers your reported wages and assurances of potential income. As an LIC agent, you could indeed set your own earning targets and earn as much as you choose for your entire life. 
  3. Work Independence: As an LIC Agent, you can be your own boss, work for yourself, select your customers, and earn money without needing initial capital.
  4. Top Quality Training: LIC provides quality training to its agents, which sets them apart from other insurance companies. Even if you have no retail experience, LIC's multi-dimensional training program can help you. Led by competent in-house training personnel, it will turn you into a life insurance marketing strategist.

Career Growth

LIC agents are trained to help people manage their finances and plan for the future. They can advise customers on general insurance or financial investments. It is a good way to make money by helping others become financially independent. Since LIC agents are classified under a nonmedical profession, they do not need any degree or certification to start working. Their monthly income depends on how much they sell and how good they are at selling products. If they work hard and the company believes in them, the LIC agent monthly salary will go up accordingly.

Also Read: How to Select the Best Bank for Salary Account in India

What Are the Requirements to Become an LIC Agent?

At first glance, the requirements don’t seem too complicated. Just apply online, and if your resume is selected, the company will call you for a telephonic interview. But before applying, it helps to ask yourself one question. Do I want to work as an agent for a life insurance company? If your answer is yes, go ahead, and apply with confidence. 

Conclusion:

There are plenty of opportunities to earn a great living as an LIC agent. Not only do you work manageable hours, but you also get to make extra money by selling policies on your own time. When you compare that with being an employee, it's no wonder many people choose insurance sales as their full-time job. It doesn't take much skill to succeed either. Most agents reach their first milestones within just a few months, and others have been known to make six figures before even reaching the third year. You can do well for yourself if you put your mind to it, and you get to choose when and where you want to work.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Why do insurance brokers leave their jobs?

Ans:

A lack of funds for prospects was the primary reason for 26.2% of those quitting. Running out of opportunities, personal problems such as health issues, and discovering the business wasn't a good fit are among the less important reasons representatives stop selling insurance.

Q: What is the retirement age for a life insurance agent?

Ans:

Even though there is no pensionable age for an LIC agent, it does provide a gratuity of up to 3 lakh upon reaching the end of the eligible length of service, which is 15 years.

Q: What are the requirements for becoming an LIC agent?

Ans:

To become an LIC agent, you should have at least passed the 10th standard and be at least 18 years old. Previously, becoming an agent required a 12th standard passed certificate. Ask your local LIC branch office and agree to meet with the development manager there.

Q: What is the agent's role in LIC?

Ans:

An LIC agent is a significant source of profit for the organisation. The LIC representatives create, establish, and update clients who provide ventures to the organisation by purchasing various policies. That's why recruitment agencies choose their agents with great care.

Q: What is an LIC agent's monthly salary?

Ans:

According to statistics, the average LIC agent monthly salary ranges from 39,200/- and 67,000/-. The amount varies according to the variety of policies a representative sells and the volume of payments made by account holders.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.