Article | Educational

8 Subject Wise Preparation Tips for LIC AAO Exam

Last updated on 30th Oct 2021

Life Insurance Corporation of India, India’s largest insurance company conducts the LIC AAO examination for recruitment of Assistant Administrative Officers for its various offices across the country. It is a highly professional and specialized service within the Government of India catering to the policies and aspects of the insurance company.

The exam is divided into three phases namely, the Preliminary phase, the Mains Phase and the Personal Interview Phase. The Preliminary exam comprises three subjects including Reasoning Ability, Quantitative Aptitude and English Language Test carrying a total of 70 marks.

In the main exam, although subjects are divided into the Specialist and Generalist categories, Reasoning Ability and General Knowledge will be common for both categories.

Being the most prestigious exam in the insurance sector, high competition is involved in this exam. Therefore careful planning and meticulous preparations will be required to ace the exam.

Subject Wise Preparation Tips

If you are also thinking about preparing for the LIC AAO exam, you should go through the following subject-wise preparation tips.

1. Reasoning Ability

Try to clear your basic concept in this section. You should also remember important formulas and rules. This will help you to solve the questions easily.

Although it is not important to remember all the formulas, by going through the previous years question paper, you will be able to remember the important formulas.

Some of the important topics in this section include Data Interpretation, Coding-Decoding, Number Series, Boat and Streams, Clocks and calendar, Syllogism,

You may prefer the book ” A modern approach to Verbal and Non-Verbal Reasoning” by R. S. Aggarwal.

2. Quantitative Aptitude

To ace Quantitative Aptitude, you will also have to clear your concept. In this section, practice is the key to scoring high.

By going through the previous years question papers, you should find out the important topics that are asked in the exam. Important topics in this Section includes Number System, Number Theory, Decimals and Fractions, Simplification, Ratio and Proportion, Profit and Loss, Mensuration, Average, Mixture and Allegation etc.

For this section, you should buy the book entitled “Quantitative Aptitude for Competitive Exam” by R. S. Aggarwal. After clearing your basic concept, you should practise mock tests which will help you to know the level of your preparation.

3. English

The topics in the English section includes Reading Comprehension, Cloze Test, Sentence Arrangement, Error Spotting, Sentence Improvement, Phrases and Idioms, Elementary Grammar and Synonyms-Antonyms etc.

Many candidates find this section difficult due to vocabulary. To enhance your vocabulary, you should read an English newspaper regularly.

To ace the grammar portion, you should prefer a good grammar book like “Objective General English” by S.P. Bakshi.

4. General Knowledge and Current Affairs

This is one of the important sections that require a little more attention in comparison to other sections. For the General knowledge portion, you may read a book by Arihant publication or Lucent’s General knowledge. From these books, you will be able to prepare for the static GK portion.

The topics of General Knowledge includes History of India, Geography of India and World, Indian Economy, Indian Constitution, Environment etc.

To prepare for the Current affairs portion, you should read one good English newspaper and a monthly magazine of current affairs. To update yourself with various important social, economic and political issues, you may also watch various important interviews and talk shows.

5. Data Analysis and Interpretation

The topics of this section include Pie charts, Bar graphs, data handling, data derivation, data implementation etc. You may buy the book entitled ” New Pattern Data Analysis and Interpretation” by Disha Experts.

To score high in this section is to improve your calculations speed and use an approximation in the calculation. By approximating the calculation, you will be able to avoid silly mistakes. Moreover, you should also be good at analysing the data and try to become familiar with all types of data.

6. Insurance and Financial Market

The topics of Insurance and Financial Market include Indian Financial System, History of LIC and IRDAI, Indian Insurance and Banking Terms, Banking Committees, Banking Awareness, Insurance and Banking Abbreviations, Stock Market, Budget, Insurance Sector (Agencies, Headquarters, Jobs, etc.), Indian and International Financial Institutions, etc.

For this section, you may prefer the book namely, “Financial and Insurance Awareness with Current Affairs” by Disha Experts.

Besides the book, you may also watch the video of various financial experts and refer to the websites providing financial knowledge.

7. English Language Test

In the English language test, your grasp of written English will be tested. To improve your writing skill in English, you should read English newspapers, magazines and other books in English. The added advantage of reading more is that your vocabulary will also be improved.

You should also practise writing articles on various important topics. It will bring flow to your writing and you won’t have to face difficulty during the exam.

You may go through the previous years question paper to get an idea about the topics of essays that were asked in the previous years.

8. Legal Drafting

Legal drafting is for those who have applied for AAO Legal. To ace in this section, you should have good knowledge of drafting.

You should practice writing various legal documents. If you are a practising advocate you won’t have to face problems.


A good strategy is required to clear the LIC AAO exam successfully. Therefore you need to focus on each subject equally so that your chance of clearing the exam increase.

The preparation tips for each subject mentioned above will give you a clear picture of the strategy for the LIC AAO exam.

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