By Sonia Rani, Content Writer
 

One of the first steps towards financial literacy is understanding the value of money and a secure future. Insurance is a legal document that protects the client financially if something unfortunate comes upon him/her. The client pays a sum of money monthly or yearly, and the insurance company provides coverage for damages to the client or his/her assets.

An insurance agent is responsible for conveying policies to the client on behalf of the insurance company. While different jobs offer varying benefits, an insurance agent focuses on providing life-long advantages through tailored insurance solutions. Their role is crucial in helping clients secure their financial future and navigate the complexities of insurance policies.

Top 10 Benefits of Becoming an Insurance Agent

If anyone wants to become an insurance agent in India, below are the top 10 advantages:

1. Flexible Hours: Insurance agents' daily agendas mostly consist of client visits and tracking investments and policies. They don't need to sit at a desk and work for hours.
You may choose to sit at your desk and work, or you may choose to visit clients when it is convenient for you.
2. Commission-Based Pay: When people say there is no limit to earning as an insurance agent, they are correct! In addition to a base salary, you can earn through commissions.
Each insurance policy you sell provides you with a portion of the policy claim as a commission. Some companies even set targets that offer additional bonuses if you successfully achieve them.
3. Personal Improvement: Working as an insurance agent can vastly improve your communication skills and interpersonal relations.
Regularly conversing with your clients will quickly make you well-versed and confident. These qualities are invaluable and can benefit you beyond your professional life.
4. Be an Early Earner: There are no age requirements to become an insurance agent other than being over 18. This allows you to start earning at an early age.
Additionally, starting young can help you become an expert in the field more easily.
5. Be an Independent Worker: Due to the nature of this job, you can work independently without the constant supervision of a boss. Independent agents, in particular, can manage their work as they wish.
A boss is typically only present to monitor or assign clients to you. You are responsible for your clients and their needs and are not required to report to a boss who evaluates your performance.
6. Income Stability: One of the biggest advantages of becoming an insurance agent is the financial stability it provides. You receive a portion of the money from each insurance policy you sell and earn additional income for each policy the client renews.
Over time, these amounts accumulate and stabilise your income. A stable and passive income helps you earn money even if you are not actively selling insurance for a period.
7. Indefinite Working Tenure: Typically, companies require employees to retire at the age of sixty. Retirement often means leaving a job you are passionate about to sit idly at home. However, insurance agents can continue working well beyond their contractual career.
Even after leaving a formal office job, insurance agents often continue advising clients and potential clients. A long career is financially beneficial and helps keep your mind and body active without the stress of deadlines.
8. Hands-on Training: Novices at any company often face months of confusion before settling into their roles. However, a job as a life insurance agent is somewhat different. Industry experts are usually readily available to assist recruits during their initial days.
They conduct workshops and training sessions to connect personally with recruits. Experienced agents often accompany newcomers to meetings with potential clients to alleviate nerves and provide valuable exposure.
9. Zero Investment Earning: Many companies require you to pay a joining or development fee before providing an appointment letter. However, an insurance company does not ask you to pay any fee before joining.
You also don’t need to purchase policies or investments to secure income. The only investments you need to make are effort and time.
10. Create a Real Difference: We are indebted to many people who have imparted priceless wisdom throughout our lives. Similarly, an insurance agent provides financial wisdom and literacy. The advice an agent offers can be more valuable than any book on finance.
You make a significant difference in your clients' lives by securing a financially stable future. Following your advice, clients will have greater peace of mind and less worry in difficult times.

How to Become a General Insurance Agent in India?

General insurance consists of various types of insurance that protect an asset against harm or damage. Physical assets like property, automobiles, or personal assets like health or travel can be insured. Insurance for these categories ensures the insurance company will reimburse the insured for any damage.

It is quite easy to become a general insurance agent. You must meet the requirements for the job and be at least 18 years of age. You should also know about various policies to help a client meet his needs. You must be an excellent communicator, as insurance agents mostly rely on sales. The better you are at helping the client buy insurance, the easier your job will be.

How to Become a Life Insurance Agent in India?

To be a life insurance agent, you must be over 18 and hold a high school degree. You must also be well-versed in policies of various categories. Being a life insurance agent requires a great relationship with your clients. You must be aware of their medical history, career path, family structure, and any lifestyle changes they make.

Life insurance is one of the most important types of insurance. You pay an affordable premium to get the benefit of life coverage. If an individual dies before the policy ends, the nominee or beneficiary gets a lump sum. Nowadays, anybody can get life insurance if they have proof of income.

Requirements to Become a Life Insurance Agent in India

Let us look at the documents required to become an insurance agent:

● Proof of Identity: You must hold a valid identity proof issued by the government to be eligible for the role of an insurance agent.
● Education: If you are from a rural area, you should hold a secondary or high school degree if you belong to an urban area. A secondary school degree is the minimum education required to apply to be an insurance agent in India.
● Age: You must be a legal adult, i.e. 18 years old, to apply to be an insurance agent. Additionally, to obtain the licence from IRDAI, you must be at least 18 years old.
● Licence: The Insurance Regulatory and Development Authority of India (IRDAI) must issue you a valid licence to sell insurance to customers.
● State-Level Examination: To become an insurance advisor and join a company as an insurance agent, you must pass the state-level IC 38 examination with a minimum of 40% marks.

Conclusion

The insurance market is lucrative and highly profitable if utilised thoughtfully. Your achievements are unlimited, both holistically and monetarily. Life as an insurance agent is highly beneficial, of course. However, the biggest benefit is the wisdom you gain.