The insurance sector is booming in India, opening up golden career prospects for those looking to pursue a successful career in the finance domain. One such career is becoming an insurance agent advisor. You can work full-time or part-time as an insurance agent and have a decent and stable income and independence. We have discussed in this guide that how you can become an insurance agent in India, if you are looking to sell insurance products and help his/her clients to get the right coverage.

Who is an Insurance Agent in India?

Insurance agent: A person who acts on behalf of the insurance company and helps individuals and businesses choose the correct insurance policies. The key roles of an insurance agent are:

1. Selling various types of insurance policies like life, health, motor, and general insurance
2. Providing knowledge about different insurances and their benefits to clients
3. Helping clients choose policies based on their financial and personal needs
4. Assisting policyholders in processing their claims and renewing their policies

A big advantage to customers that a registered agent brings is not only is an agent and expert with knowledge about the type of benefits they should be looking for in a health insurance policy, but also has a personal relationship which makes it possible for an insurance agents to points to probable gaps in the financial plan of the customer and how they can protect themselves from the same.

Five advantages of becoming an Insurance Agent

Insurance agents are career professionals that are in high demand because of the growing awareness regarding financial security and risk management. Some benefits of pursuing this career choice include:

1. Financial Freedom: An insurance agent gets paid commission for each policy sold, giving you a constant stream of income which adds to your current income and derisks your finances. 

1. Flexible Time: Unlike most other professions, insurance agents can choose to work part time or full time depending on their personal circumstances. And these choices are also not permanent. You can change them as and when you want. 

1. Low upfront Investment: An insurance agent is one of the professions that does not require a high investment upfront. You just need to enroll yourself with an insurance company, clear a few exams and you are ready to roll!

1. Professional Development: Most agents move up the career ladder either by becoming agency managers or by opening their own insurance agencies.

1. Increase Social connect: The weakening of social bonds today makes insurance sales a socially rewarding career path.

    

Becoming an insurance agent: Eligibility Criteria

The Insurance Regulatory and Development Authority of India (IRDAI) has specified certain eligibility criteria that must be fulfilled in order to become an insurance agent in India:

1. Age: An individual should be18 or older to be an insurance agent. 
2. Education Qualification: The person should have cleared at least 10th Class (for rural areas) and 12th Class (for urban areas) to be considered educated enough to be an insurance agent. 
3. IRDAI Training: Completion of a 15-hour training program which is mandatory has to be conducted by an IRDAI-approved institution. This is something where insurance companies help the insurance agent. 
4. IRDAI Exam: The IRDAI IC-38 exam should be passed by an individual to get licensed as an insurance agent.

    

Five steps to becoming an Insurance Agent

1. Choose an Insurance Company: Before you apply to be an insurance agent, you need to know which company you want to work with.

1. Submit Documents: After choosing an insurer, you have to go to the official website of this insurer or any of their local branches to register as an agent. You will be required to upload the following documents:

1. 1. PAN Card
   2. Aadhaar Card
   3. Certificate of Educational Qualification
   4. Passport-size Photographs
   5. Application Form

1. Complete IRDAI Training: According to IRDAI guidelines, a 15-hour training program – available online or offline – is a requirement for aspiring agents. Training includes topics like:

1. 1. Principles of Insurance
   2. Types of Insurance Products
   3. Policy Terms and Conditions
   4. Insurance Sales Techniques

• Pass the IRDAI Exam: Candidates must take the IRDAI IC-38 examination after completing their training. The insurance licensing exam assesses your understanding of insurance policies, regulations, and sales techniques. To qualify, you must achieve a minimum score of 40%. After successfully clearing the IRDAI exam, you will get dubbed as an insurance agent, which will allow you to sell insurance policies for the insurer.

1. Start Selling Insurance: Licensed agents can begin to work as an insurance agent. For example, your insurance company will offer marketing materials, product information, and sales training. For those interested in selling health insurance, becoming a “health insurance broker” can enable you to work more than one insurer and provide a larger product range to customers.

    

Insurance Agent Commission scales

Income based on commission is one of the most appealing aspects of being an insurance agent. Agents make a percentage commission on each policy they sell, and the percentage varies by type of insurance:

1. Life Insurance: 15–35% of first-year premium, 5–10% acquires on renewals.
2. Health Insurance: 15-20% commission for new policies, renewal commissions.
3. Motor Insurance: 10-15% commission on motor vehicle policies.
4. General Insurance: Fire, home, travel, and other policies: 15-20% commission.

More sales mean more commissions, and seasoned agents can earn a high income.

Qualities Needed to Be Successful as an Insurance Agent

Becoming an insurance agent is straightforward, but making it work involves certain skills:

1. Effective Communication Skills: Use simple language to explain terms related to insurance to the clients.
2. Sales Skills: Persuasion of potential clients to purchase policies.
3. Ability to Network: Establishing and sustaining client relationships.
4. Skilled in Financial Matters: Understanding various lines of insurance and their benefits.

Securing a profitable vocation as an insurance agent in India ensures financial independence, flexibility and means for career growth. If you register yourself with an insurance company, complete IRDAI training, pass the exam and develop sales skills, you can enjoy a fulfilling career in the insurance industry