Earn without capitalCommission workChecked Oct 2026
Life Insurance Agent (LIC and private insurers)
बीमा एजेंट (एलआईसी) · विमा एजंट
Selling life insurance policies for one insurer and earning a commission on each premium. Costs almost nothing to enter, but the income depends on how many people trust you enough to buy.
The short answer
Open to almost anyone who is 10th pass, and a real long-term income for the few who keep at it for years. For most people it starts with sales to relatives and friends and stops when that circle is used up. Do it part-time first, alongside other work, and sell only what you would buy yourself.
- Money to start
- Under ₹5,000
- Education
- 10th pass
- Vehicle
- Not needed
- Skill
- Learnt on the job
A life insurance agent is licensed to sell the policies of one life insurer. You find people who need cover, explain the plans, fill in the proposal, collect documents and help with claims and renewals for years afterwards. There is no salary. You earn a commission when a customer pays the premium: a larger share in the first year of a policy and a small share each year the customer keeps paying. That renewal income is what makes long-serving agents comfortable, and it is also why the first two or three years are lean. Most new agents leave within that period.
What you need
- Age 18 or above.
- Class 10 pass certificate, Aadhaar, PAN, photographs and a bank account.
- Pre-licence training, reported as about 25 hours, arranged through the insurer's branch or a development officer.
- A pass in the IC-38 examination conducted for insurance agents.
- Time and willingness to meet people and hear 'no' often.
| Before you start | Cost |
|---|---|
| Training and IC-38 examination feeWe could not confirm the current fee. Ask the branch for the official receipt amount; it should be small. | Ask first |
| Travel and phone costs while you build customersYours to bear, with no reimbursement. | Ask first |
How the money works
The insurer pays you a percentage of every premium your customers pay. The percentage is highest in the first policy year and drops to a small renewal commission in later years, for as long as the policy stays in force and you remain an agent. The rate depends on the type of plan and how many years the customer pays premium.
- Long-term endowment plans carry the highest commission and pure term plans a lower amount in rupees, because term premiums are small. This is the pull towards selling what pays you more instead of what the customer needs.
- If a customer stops paying after a year or two, your renewal income from that policy ends.
- Insurers set a minimum amount of business each year to keep the agency active.
- Commission is taxable income and tax is deducted at source.
What people actually take home
We do not estimate earnings ourselves. Each line below is someone else's figure, with who said it and when.
Published accounts of LIC's schedule put first-year commission on endowment plans with premium terms of 12 years or more at about 25%, rising to 35% with bonus commission for agents who meet conditions, and 15% to 33% on shorter terms.
Website estimate, method not shownUndated summary, read Oct 2026 · BankBazaar: LIC agents and their commissions
After new surrender-value rules in 2024, LIC reduced first-year commission slightly and raised the commission for policy years 4 to 6, according to a reply in Parliament.
Government or regulator2025 · Lok Sabha unstarred question on LIC agents' commission
An industry publication reported that life insurance agents receive over 20% of the premium collected as first-year commission on average.
Website estimate, method not shownRead Oct 2026 · Cafemutual: first-year commission of life insurance agents
What we could not find
- LIC's current official commission table, plan by plan.
- The current IC-38 fee and pass mark. Websites disagree on the pass mark.
- Any figure for what an average agent earns, or how many new agents are still active after three years.
Work out your own number
Put in the rates you are actually offered. The starting values are examples, not what you will get.
Fill in the empty boxes to see the result. We have left them empty because we found no figure we could trust.
The 25% is the lower published figure for long endowment plans and may be out of date; term and short plans pay less. This shows first-year commission only. Renewal commission adds a little each later year for policies that stay in force.
Commission does not arrive evenly. Expect months with nothing, and count the months before your first sale as unpaid.
Is it legal where you live?
All India
You may sell life insurance only after the insurer appoints you as an agent under IRDAI's rules, which need the training and the examination. An individual agent represents one life insurer at a time. Promising returns that are not in the policy document, or paying part of your commission back to a customer as a rebate, is prohibited.
As of Oct 2026
How to start
- Visit the nearest LIC branch, or the office of a private insurer, and ask to meet a development officer or agency manager.
- Submit your Class 10 certificate, Aadhaar, PAN, photographs and bank details.
- Complete the pre-licence training and pass the IC-38 examination.
- Receive your agency code and appointment letter.
- Start with a list of 50 people you know. Understand each family's need before suggesting any plan.
- Keep your other work for the first two years. Leave it only when renewal income is steady.
What is good about it
- Costs very little to enter and needs only Class 10.
- Part-time friendly, with no fixed hours and no shop.
- Renewal commission builds up, so the tenth year pays far more than the first for the same effort.
- Useful knowledge of insurance, tax and paperwork that helps your own family too.
What is hard about it
- No salary. Months with no sale are months with no income.
- Most early sales come from relatives and friends, and that circle runs out.
- The plans that pay the agent most are often not the best for the customer. Mis-selling damages relationships that last longer than the commission.
- Minimum business targets must be met every year to keep the agency.
- Customers call you for claims and service for decades, long after the commission has shrunk.
Traps to avoid
- Anyone who asks for a large 'agency fee' or 'code fee'. The official cost is the training and examination fee, with a receipt.
- Recruiters who show the income of a top agent as if it were normal.
- Pressure to buy policies in your own or your family's name to meet a target. That is your own money going out, not income.
Where this can lead
- LIC Apprentice Development OfficerThe salaried LIC job that recruits and manages agents. Agents have a separate quota.
- LIC Assistant Administrative OfficerThe officer cadre, through an open examination for graduates.
- Insurance POSPA simpler licence for motor and health policies, which sell more easily.
- Real estate agentAnother commission trade built on the same local contacts.
Questions people ask
What is the qualification to become an LIC agent?+
You should be at least 18 and have passed Class 10. You then complete the pre-licence training and pass the IC-38 examination before LIC appoints you.
Does an LIC agent get a salary?+
No. An agent is paid only commission on the premiums customers pay. The salaried job in the same field is the Development Officer, who is an LIC employee.
Can I be an LIC agent part-time, along with a job or studies?+
Yes, and that is the safer way to start. Check your employer's rules first: government employees and staff of some companies are not allowed to hold an agency.
How much commission does an LIC agent get on a policy?+
It depends on the plan and how long the customer pays premium. Published summaries put first-year commission on long endowment plans at about 25%, up to 35% with bonus, and much less in later years. LIC trimmed first-year rates after the 2024 surrender-value rules. Ask the branch for the current chart for the plans you intend to sell.
Sources
- BankBazaar: LIC agents and their commissions
- Lok Sabha unstarred question on LIC agents' commission (2025)
- PB Partners: how to become an LIC agent
- Cafemutual: first-year commission of life insurance agents
Pay rates, fees and rules change often and differ by city. Confirm them with the company or the regulator before you commit money or leave other work.
Compare with
Insurance POSP (Point of Sales Person)
बीमा पीओएसपी
A simpler insurance licence for selling ready-made policies such as two-wheeler, car and basic health cover from your phone. The easiest agency to enter, with small commission per policy.
Money to start
None
Education
10th pass
Place
From home
Real Estate Agent (Property Broker)
प्रॉपर्टी एजेंट / ब्रोकर · इस्टेट एजंट
Bringing buyers and sellers, or tenants and landlords, together for a brokerage on each deal. Needs local knowledge and patience more than money, and a RERA registration to sell flats in projects.
Money to start
₹5,000 to ₹25,000
Education
No minimum
Vehicle
Not needed