If you’re someone who wants to give wings to their career, then becoming a life insurance agent is the best thing to consider. Not only does this job profile help others, but it also protects their financial future for their own betterment. While it may seem like a challenging task at first, we are here to guide you through the process and show you that with the right knowledge and skills, you can embark on this fulfilling journey. No matter whether you’re just starting out or considering a career change, becoming a life insurance agent may let you reap countless benefits.
In this post, we’ll discuss the steps that will help you become a certified life insurance agent, eligibility criteria, responsibilities, steps, and more.
What is a Life Insurance Agent?
A life insurance agent is someone who sells insurance policies to people. They’re like salespeople for insurance. They work with customers to figure out what kind of insurance they need and help them choose the right policies. Life insurance agents may also sell other types of insurance like health, car, or disability insurance. Furthermore, they can help customers manage risk, renew policies, and handle multiple life insurance claims. One of the major highlights of becoming a life insurance agent is that it may increase your earning potential and foster professional growth and experience.
Eligibility Criteria
Here is the list of eligibility conditions for becoming a certified life insurance agent.
| Parameters | Details |
| Academic Qualifications | Xth standard |
| Age | 18 Years |
| Certification | An individual should be certified by the Insurance Regulatory & Development of India (IRDAI) |
| License | An individual should qualify for the state-level exam to get a license as per the state’s regulation policies. |
Types of Life Insurance Advisors
Here is a list of the different types of life insurance advisors that you should know about. Let’s discuss them in detail!
Internal Sales Insurance Agent:
An internal insurance sales agent works full-time with a specific life insurance company. They represent the company and are responsible for selling its insurance products. Their main objective is to attract and retain clients, which ensures they don’t switch to competitors. Internal insurance sales agents focus on building relationships with clients and providing them with suitable insurance solutions.
Captive Insurance Agent:
Speaking of the other position, a captive insurance agent is exclusively associated with one insurance company. They specialize in selling a particular product offered by the company. Furthermore, captive agents gain in-depth knowledge of the specific product and assist customers in purchasing it based on their individual needs. Also, they receive a fixed salary, variable commissions, and other benefits.
Independent Agent/Point of Sales Person:
As an independent agent or POSP, you have the flexibility to sell multiple insurance products from different insurance companies. The IRDAI grants licenses to these POSPs to ensure they can offer their customers a range of insurance options.
Responsibilities of a Life Insurance Agent
It is no secret that life insurance agents have a wide range of responsibilities in order to provide effective insurance solutions to their clients. Here are the key roles and responsibilities of a life insurance agent.
- Stay Updated
Life insurance agents should stay updated on new products and services in the insurance industry. This involves attending meetings, seminars, and events to stay abreast of the latest developments and advancements.
- Premium Calculation & Payment
Another major responsibility of a life insurance agent is that they are responsible for calculating insurance premiums based on factors such as coverage, risk assessment, and client requirements. Furthermore, they even help make arrangements for payments.
- Record-Keeping
In the third step of responsibility, insurance agents maintain accurate and up-to-date accounting systems, databases, and records. This ensures that client information and policy details are properly organized and easily accessible when needed.
- Claim-Related Assistance
When clients file insurance claims, life insurance agents play an incredibly important role in helping them throughout the process. They guide clients through the necessary steps, which include claim documentation and communicate with insurance companies to ensure timely claim settlements.
- Customer Satisfaction
There is no denying that life insurance agents prioritize client satisfaction by ensuring that insurance coverage aligns with clients’ needs and expectations. They regularly review insurance policies with clients, which ensures necessary adjustments or recommends alternative options when required.
- Personalized Insurance Programs
One of the major responsibilities of an insurance agent is that they may personalize insurance programs to meet each client’s unique needs. They assess clients’ specific circumstances, financial goals, and risk tolerance to recommend suitable coverage options.
- Policy Compliance
Last but not least, life insurance agents ensure all policy requirements are met, including completing necessary forms and documentation. Furthermore, they guide clients through the application process, ensuring that all necessary information is provided accurately.
How To Become a Life Insurance Agent?
If you want to become a life insurance agent, then listed below are the steps to consider;
- Choose Your Path
In the first step, you will need to decide which type of insurance agent you want to be and which products you want to sell. Explore opportunities at different agencies or brokers to find the best fit for your skills and interests.
- Meet Education Requirements
While a high school diploma is the minimum requirement, having a college degree can boost your sales skills and credibility with customers. Familiarize yourself with your state’s licensing guidelines to serve customers effectively.
- Take the License Exam
In the third step, you will need to pass a pre-licensing exam to obtain your insurance license. This exam covers various insurance products like whole life, health, or accidental insurance. Begin by registering on the insurer’s website and completing the required training modules online. Ensure you can go through study resources such as e-books, tutorials, and online courses.
- Apply for Your License
Once you pass the exam, apply for your life insurance broker license. Gather necessary documents like identification, educational certificates, and exam scorecards. Submit your application along with the required fees to the Insurance Regulatory and Development Authority of India (IRDAI). Upon approval, you’ll be legally authorized to sell insurance policies in India.
Conclusion
So, there you have it! With these simple steps, you can easily become a dedicated life insurance agent who not just helps others but also helps in career growth. Whether you’re a fresher, college graduate, currently employed, or retired, working as an insurance agent can boost your monthly income with handsome salaries. All you need to do is simply undergo training, pass the IRDAI examination, and get certifications to sell life insurance policies.
Frequently Asked Questions
The frequently asked questions about becoming a life insurance agent are listed below.
Yes, if you have passed 10th grade and have the necessary documents, you can become a LIC agent.
Being an insurance agent is a great career choice. It’s rewarding, offers good earnings, and allows flexibility in working hours.
While being an insurance agent is rewarding, it can also be stressful. Slow sales, upset clients, and tight deadlines can sometimes lead to exhaustion and burnout.
Training for life insurance agents happens in different stages. Firstly, you’ll attend training sessions, including a 2-day classroom training. After that, you’ll continue with regular training sessions, with options for classroom training. In the next step, your manager will provide both online and on-field training to help you develop your skills.
Insurance companies pay commissions to agents as a percentage of the premiums. Agents can’t deduct their commission before submitting the premium amount; that would break the rules.
