Building a career in the insurance industry presents an attractive prospect for newcomers and seasoned professionals. Suppose you want to become a POSP agent; in that case, this career path can offer flexibility and a range of intriguing clients depending upon your chosen sector, such as life insurance or general insurance. However, before you embark on this new journey, you must understand the basic criteria to become an insurance agent, why you chose this line of work and the process.
Who is an Insurance Agent?
Insurance agents are skilled and trained employees who address customer needs and assist them in selecting the right insurance product based on their requirements. A POSP insurance agent is also responsible for explaining the policy’s premiums, coverage, and terms and conditions to the customer.
Whether you join a life or general insurance company or work as an independent agent, your job will be to represent the company and its products, including life insurance policies, health insurance, or any type of motor insurance plan.
Why Should You Become an Insurance Agent?
Insurance is among the few industries unaffected by the economy’s state. The insurance sector has seen exponential growth since the pandemic and is expected to grow tremendously.
Becoming a part of a booming industry is a smart career choice. Below is a list of benefits explaining why you should become an insurance agent.
1. No Age Restrictions to Start a Career
Many companies recruit agents aged between 18 and 55. So you can work right after completing your 12th grade and start later in life.
2. You are Your Boss
The insurance industry allows you to work as per your schedule and develop your system for attracting and developing clients.
3. Zero Investment Required
You do not need to invest any money to kick-start your career; all you need to do is invest your time and effort.
4. Build a Stable Income and Earn as Much as You Wish
The earning potential is huge, and as an insurance agent, your income is limited by your desires.
5. Flexible Work Timings
Unlike other desk jobs, insurance agents have flexible work timings. Once you become a life or general insurance agent, you can choose the time and place to work and make money online.
How to Become an Insurance Agent?
To become a life insurance agent or general insurance agent in India, you must complete your training course and get your certification. Below is the process of becoming an agent in simple words.
1. Choose the Insurance Company
To kickstart your career in the insurance field, you first need to identify the insurance company you want to choose. Research their offerings, their location, market credibility, etc.
2. Decide the Kind of Insurance Agent You Want to Become
Decide what kind of insurance agent you want to become and what insurance product you want to sell. You can become a captive agent (exclusively affiliated with one company) or a PoSP or Point of Sales in Insurance (Agents who work with multiple companies).
You can also decide to become an exclusive life insurance agent or a general insurance agent (Health Insurance, Motor (Car, Bike, Commercial Vehicles) Insurance, SFSP Insurance, and International Travel Insurance).
3. Check The Eligibility Criteria
To become an insurance agent, you need to meet the eligibility criteria. Before proceeding with your plan, check whether you meet the criteria.
4. Complete Your Training & Take The Exam
To become an insurance agent, you must undergo basic training set by the IRDAI, which is available online and offline. Complete this training, receive your certification, and sit through a pre-licensing exam to qualify.
5. Get Your Licence
Once you have completed your training and examination, you need to apply for the insurance agent license from IRDAI. You must submit the necessary documents (identification proof, educational certificates, exam scorecards) with your application and fees to IRDAI. Once you receive your license, you can start selling.
Eligibility Criteria & Documents to Become an Insurance Agent
The basic criteria that any insurance agent, be it a life insurance or general insurance agent, needs to fulfill is set by IRDAI, which is the insurance regulatory authority in India. The basic eligibility requirements are mentioned below:
1. Age: The applicant must be at least 18 years of age
2. Education: The applicant needs to have a 10th-grade certificate
3. Required Documents: To take up the training, you need to submit certain documents, that include:
- Aadhaar Card and PAN Card (Age, Address and Identification Proof)
- Marksheet and Passing Certificate for Class 10th (Education Proof)
4. IRDAI Certification: The applicant must complete the minimum 15-hour training as specified by IRDAI and receive certification.
The specifics and eligibility requirements can vary, so you should check with the IRDAI and the insurance company you are interested in for the most accurate and up-to-date information.
Becoming an insurance agent can be fulfilling, specifically if you have strong communication and sales skills. Hopefully, the guide above will help you master the path to your chosen profile.
