Insurance business in India is still in its budding stage. A research study tells that about 70% of Indian population are still to take a single insurance (life) policy and also an average individual takes a minimum of 7 policies in his life time.
This alone tells the scope for doing Insurance business in India and hence we see many new joint ventures emerging in India to set up an Insurance house.
One of the ways, you can become a part of this emerging business is by becoming an Insurance agent, also called as Insurance Advisor or Life Advisor.
One of the main advantages of becoming an Insurance agent is that you are your own boss and are under no pressure from any one. You can work when ever you like to work and you can rest when ever you feel like resting. Best part is that the income you could generate by becoming an Insurance Agent in unlimited. Of course, it all depends on your interest in promoting the insurance products of your company. The more you put in your efforts, the more you can sell the policies and the more commission you make.
Insurance Development and Regulatory Authority, IRDA is the governing body of Insurance business in India which has set strict regulations on who and how to become an Insurance agent.
The requirements are as follows:
- You should at least be 18 years of Age.
- You have to be at least a 12th pass candidate if you are from/ to be posted in an area where the population is over 5000. If the population is less than 5000, a 10th standard pass is sufficient.
- The will be training for 100 hours which every candidate must attend after which there will be an examination which the candidate has to get through to become an Agent.
- The fee for obtaining the license is Rs.250 and the fee for certification of a specified person is Rs.500.
If you wish to go through this entire process via an Insurance company, you could do so by approaching any Branch of a company. As I said earlier that Life Insurance is a hot business (Insurance is the subject matter of solicitation) in India and Insurance companies are actively looking for Life Advisors to grow their Business.
In this scenario, you can visit any Branch of an Insurance company and talk to a team leader about your Interest in joining as an Advisor. If he or she sees a passion in you, then there should be no hesitation in making you a part of their team. If the team leader accepts your wish, he or she will describe the entire process (described above) and make you go through each step to obtain your License.
Alternatively, you can also visit the websites of Insurance companies and look for the Insurance agent section to put forward your request of being a part of their team.
For example, if you’d like to be an agent in LIC, visit their careers page and follow the procedures.
Similarly, you can find such pages on other Insurance company websites too.
How could you earn as an Advisor/Agent?
Insurance agents earn money on a commission basis. Depending on the policies you sell, you could earn a commission from 10% up to 40% of the first premium.
You also earn an attractive commission on the second and third premiums that your customers pay.
Say if you sell a policy whose annual premium is Rs.10000, you can earn a commission from Rs.1000 to Rs.4000 depending on the policy on the first premium and also 7 ½% on the second premium and 5% on the third premium amount.