LIC AAO vs Bank PO: Which to Choose| Salary Profile Promotions Working hours


LIC AAO vs Bank PO: Salary, Job Profile, Work Pressure, Working hours, Transfers, Perks and Benefits, Future Growth and Final Verdict


Which is the better career option among the two: Insurance or Banking? The fuel never runs out from this topic and its always up for debate.

Banks prompts people for loans and deposits whereas LIC promotes Life Insurance, with the motto of ‘Jeevan ke sath bhi, bad bhi’. meaning, its for your lifetime and even years after that. Previously the recruitment processes for both the organisations were different but now LIC, which was established in the year 1956, has started getting on banks recruitment’s turf

LIC AAO vs Bank PO: Salary, Job Profile, Work Pressure, Working hours, Transfers, Perks and Benefits, Future Growth and Final Verdict

So Fundamentally the two jobs are different. But their examinations have striking similarities viz a viz paper pattern, difficulty level, syllabus etc. This has enabled the large exodus of banking aspirants to insurance sectors.

Bank PO Comprehensive Online Preparation Package

Let us now take a closer look at both the profiles:

LIC AAO vs Bank PO #1: Job Profile 

LIC AAO: Job Profile

As an LIC AAO you are required to do administrative work, this would include the following

  • Formulating new schemes, inspecting policies
  • Managing and filing claims, client interactions
  • Coordinating with other departments, provide assistance
  • Perform any work specified by department head or administrative Officer.

Bank PO: Job Profile

As a Bank PO you are expected to:

  • Provide services to customers
  • Enhance business of the bank
  • Handle cash activities at the bank
  • Manage Clearance of Payments
  • Manage accounts of customers
  • Official communication

LIC AAO vs Bank PO #2: Work Pressure

Work Pressure:

LIC AAO is a lower level managerial post. After joining you are allotted one/several department and the onus for getting the work done lies on your shoulder. You are taught human resource management, finance, project planning and execution. Scope of work includes underwriting, policy servicing, Marketing, IT, Actuarial, Investment, Audit, etc. One can be deputed to LIC HFL, Nomura, LIC cards, GIC, III, etc. It is a continuous learning curve.

Bank PO’s work includes General Banking, Administrative Task, or any other task bestowed by the senior management from time to time. As a Bank PO you will undergo rigorous training to understand the nitty-gritties of Banking and trained for accounting, marketing, investment, billing, finance, human resources, forex, agriculture banking,general banking.

Work pressure wise the only differentiating factor is Customer Engagement. As a PO you have to interact/bring in new customers, however as an LIC AAO you are not expected to do that.


LIC AAO vs Bank PO #3: Working hours

LIC follows a 5 day work week pattern, enabling you to party/utilize the weekend for productive tasks.

Banks have recently started a new policy according to which, 2nd and 4th Saturdays of the month are declared holidays. This means you miss out on two free holidays in a month and 24 holidays in a year. This is a huge difference when compared on an annual basis, you get close to a month off while working for LIC as compared to Banks.

LIC AAO vs Bank PO #4: Transfers

Both AAO and PO are public sector jobs, making transfers a necessary evil in this comparison.

The transfers mostly take place every 2-5 years.In both Organisations, transfer is on the basis if seniority/promotion.

In LIC, some preference is given to Female employees for transfers.

The plus point with LIC AAO is that most LIC branches are in city as compared to bank (which are also located in rural areas). So if you are an LIC AAO, you will spent most of your time in cities with a decent lifestyle.

LIC AAO vs Bank PO #5: Salary

As a PO in govt bank you are entitled to receive Rs.34 – 38,000/ month while as an LIC AAO you will receive Rs.33 – 35,000/ month

The LIC AAO salary is under revision after the govt agreed for 15% hike.

So after the revision is implemented, the take home salary of LIC AAO will increase to approx Rs.42 – 45,000/ month.

But the salary negotiations for banks & LIC happen once in every 5 years, unlike in banks.

LIC AAO vs Bank PO #6: Perks and Benefits

LIC AAO provides the following benefits:

  1. Defined Contributory Pension
  2. Special Allowance for passing Actuarial Examination
  3. Gratuity
  4. LTC,
  5. Cash Medical Benefit
  6. Group Mediclaim
  7. Group Personal Accident Insurance
  8. Group Insurance
  9. Vehicle Loan (2-wheeler/4-wheeler) as per rules.

Banks provide the following perks:

  1. Contribution Pension Scheme/New Pension Scheme
  2. Medical Aid for self (100%) and for family (75%)
  3. LTC
  4. Home Travel Concession/ Leave Fare Concession
  5. Concessional interest rates for Housing/Car/Personal Loans

So , as per this criteria, both the posts are approximately equal.

LIC AAO vs Bank PO #7: Future Growth

Promotions in Banks happen every 2-3 years in the following scale:

  • Bank PO
  • Assistant Manager
  • Branch Manager
  • AGM
  • GM

Promotions in LIC are a hard thing to come by, since it takes at least 8 years to become eligible for promotion. The scale is:

  • ADM
  • DM
  • ZM

Promotion in banks are faster as the Banking Policies ensure a steady procedure for promoting a probationary officer at regular time period.On the other hand  the Insurance Sector follows a non-proactive promotion policy.

So definitely, future wise , Bank POs have a better prospect than LIC AAO.

LIC AAO vs Bank PO #8: Final Verdict

Thus both have their own pros and cons. If you look from salary and personal life and work angle, it is certainly LIC AAO which scores more but in terms of promotions, it is Bank PO which is much better than LIC AAO.  Here’s a list of Pros and Cons of both LIC AAO and Bank PO.


  • 5 Day Work Week
  • Limited Workload
  • Urban Postings
  • Good work life balance
  • Zero Customer Engagement
  • Better IT infrastructure
  • Low and long promotion cycles.
  • Less exposure to market conditions.
  • Hence less chances of personal growth.
  • Lower salary than Bank PO

Bank PO Comprehensive Online Preparation Package

Bank PO

  • High promotion chances
  • Low Transfer cycle
  • Overall exposure
  • Better Salary
  • Lower loan rates
  • Rural Postings
  • 24 Less holidays in an year.
  • Customer Dealings

So who Wins? Well we are waiting for your answer.

[socialpoll id=”2324642″]

If you have any queries regarding LIC AAO or Bank PO, please ask them in the comments section below, we will be glad to answer them for you!

Click here to read LIC AAO Reasoning Preparation Tips 


  • Samant kumar singh

    After wage revision starting basic pay of an aao is gonna be 32700 n total salary will be approx 50k per month..n dat would be applicable from october 2012..both in lic n banks salary revision takes place once in 5 year n next revision is due in 2017 both in banks n salary wise aao is better dan po..

    • Vaibhav

      Great insights samant

  • divya dandotiya


  • sagar badgaiyan

    Is there sellling job in lic aao

    • Vaibhav

      There are. but this is not a selling job

  • Sonali

    Does Lic ao have descriptive part ?

  • Sonali

    Does Lic so have descriptive part

    • Vaibhav

      LIC SO?? Lic AAO doesn’t has any descriptive paper.

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  • Bhumika Chandra

    Says that the salary of LIC AAO is far more than that of a normal Bank PO.

  • rizwana sanam

    plz tell me whether lic admit cards are released r not plzzzzzzzz……..some r sayng dey r released

    • Akshay Jain

      LIC admit card is not released right now. it will come before 15 days from exam date

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  • Di Caprio

    lic aao is far better than bank PO

    • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

      R u working in LIC?

  • Mr Man

    Current gross salary

    LIC AAO – 50,200 in class B cities
    Bank PO – 37,000 approx


      Mr Man
      Thanks for your updated facts.
      It will be highly beneficial for the aspirants.

    • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

      Helo Friend…..