An Insurance Agent: More than a Broker
When we all look for multiple earning sources while doing a regular 9 to 5 job, becoming an insurance agent can be rewarding as part-time and full-time employment as well. Selling insurance may seem a challenging task at first instance for anyone out there, but if you get adequate training, something other than an unrestricted working schedule is what you can expect. An insurance agent job is now more than a convincer and become an innovative and dynamic field attracting people from all walks of life. Let’s discuss in detail whether being an insurance agent is worth it.
Who is an Insurance Agent?
Insurance agents are licenced professionals working as intermediaries between one or multiple insurance companies and the customer to offer a broader range of insurance products that complements the customer’s financial needs. The insurance agents make the insurance purchasing process easier by all means. They ensure that the policy buyer gets the best coverage to stay protected against any uncertainties of life for a great price. Also, an insurance agent assists the clients in filling out the forms, being responsible when settling claims, and informing the customers about any changes or updations regarding the policy and multiple roles.
Who is a POSP Advisor?
Insurance is a rapidly growing market in India, and after Covid-19, there’s been a boom in people purchasing life insurance, general insurance, or health insurance policies. To advance the process and give the career of an insurance agent credible growth in the country, IRDAI developed a new model for insurance distribution in 2015. The Point of Sales Persons (POSP) is the new phrase that reflects a trained and licenced insurance-selling individual. To become a POSP advisor, an individual must undergo basic training and certification, enabling them to sell pre-determined insurance products to their customers.
Functions of an Insurance Agent
If you are aspiring to become an insurance agent in India, except for selling life insurance, general insurance, health insurance, term insurance, motor insurance or other policies, there are multiple responsibilities that you will deliver. Let’s look into the key functions of an insurance agent in India.
Reaching New Business: The primary function of the insurance agent is to solicit prospective clients and procure new business. This includes closing the sales.
Protect the Existing Clients: With new customers, insurance agents must conserve their existing customers with the company's policies by ensuring that they duly submit their premiums and prevent the policies from lapsing.
Assist the Clients in Choosing the Suitable Policy: A POSP advisor should listen to the insurance needs of the customers and help them get one suitable insurance policy (whether health, term, motor, or endowment) from multiple options available in the market.
Enquire the Risk: Get all the necessary information that helps you evaluate the risks related to policy terms and conditions and help the client claim the risk accordingly.
Preparation of Required Documentation and Processes: An insurance agent should assist the client in collecting the prospect documentation per the terms and conditions of insurance policies and inform them about the importance of appointing the nominee. This helps eradicate future ambiguities.
Eligibility Criteria to be an Insurance Agent
As determined by IRDAI, some basic requirements make an individual eligible to become an insurance agent.
Educational Qualification: Minimum of 10th class
Age: At least 18 years of age
IRDAI Certification: Qualify the certification process set by the Insurance Regulatory and Development Authority of India (IRDAI)
State license: Qualify for the state-level exam to claim a license
Anyone who wants to start their career as an insurance agent or, say, a POSP advisor needs to fulfil the eligibility criteria mentioned above. Thus, if you are 18 or above and completed your 10th, no matter whether you are a housewife, a fresher, a student, part-time or full-time employment seeker, you qualify to start your training process to become an insurance agent.
Types of Career as an Insurance Agent
Being a life insurance agent can be exciting as you will be your own boss and gain an expanded income potential. An insurance agent has different career opportunities and paths and can provide you with the following job titles.
- Insurance Agent: The primary duty of an insurance agent is to sell policies by visiting individuals, organizations, or various firms that need life insurance or general insurance policies within their budgets. They sell life insurance and other policies and play a significant role in taking responsibility for unforeseen events.
- Insurance Advisor: An insurance advisor basically provides financial advice to clients in retirement planning, life threat planning, risk protection, and risk management. They ensure that the customers are aware of the terms and conditions, taxes and liabilities. Intermediation and sales are also included in their roles.
- Customer Service Representative: The firm job of the customer relationship manager is to make a bridge between the life insurance company and the policy buyers. A representative regularly communicates with the clients, creates new prospects, and other customer service obligations. So the insured doesn’t approach the competitors.
- Insurance Analyst: An insurance analyst generally analyses different insurance policies and practices to ensure possible consequences for life insurance companies and the insured.
It’s your choice to choose whether to work with a life insurance agency or be an independent entrepreneur. The jobs mentioned above are independent and commission based, which is higher in the first year of policy inception and then reduced, and the life insurers decide the commission permittable.
Worth of Becoming an Insurance Agent
The career choices you have never considered can be the best decisions ever. If you are considering being a POSP advisor or insurance agent, the first thought that strikes your mind is whether or not it is worth becoming an insurance agent. Here you get your answer, as the job is filled with multiple perks.
Helping People
While doing your job, remember that you are making a big difference by helping people secure their life and belongings most efficiently. The job is not only a way of settling your day-to-day expenses, but your actions keep your community safe and protected.
An Expanded Career Opportunity
Working 9 to 5, you may wonder what else you can achieve in life that can help you improve your and others lives. You can become a POSP advisor as a part-time opportunity or can be a full-time employee with any life insurance company. No matter the effect of recession and inflation, the need for insurance will never end.
Be Your Own Boss
Once you become an insurance agent, you become your own boss by acquiring the freedom you always sought in a 9 to 5 job. Whether an independent insurance agent or with any insurer, you select personal freedom that most jobs lack.
Expanded Earning Potential
As most jobs are tied up with a fixed salary, insurance agents are free to expand their earning capabilities to a good level. You can sell as many insurance policies per the requirements of the individual and make money on each policy sold.
Learning and Professional Development
A life insurance agent has opportunities for continuous learning and development, rather professional or personal. You work on your soft skill, including communication and problem-solving, and technical skills, including analysis and software specialization. Also, you are updated with the latest industry trends, regulation changes and new insurance products.
Stability and Job Security
No matter when you plan to switch to a job, you are always concerned about security. Doesn’t matter the automation in every industry; nothing can replace the need to buy insurance and the right guidance. The insurance industry provides stability and job security, including life insurance.
How Much Does an Insurance Agent Make?
Since the earnings of an insurance agent are totally commission-based, the pay can vary significantly depending on the insurance policies sold and insurer to insurer. Each insurance company has their own guidelines for their insurance agents, determining the commission percentage on a policy sold. There’s a different percentage of selling life, health, motor, renewals, claim assistance, etc.
Benefits of Becoming an Insurance Agent with RenewBuy
You can become a POSP advisor with RenewBuy by just following a simple process with zero investment. An insurance agent sells customers different POS and Non-POS insurance products and earns benefits accordingly. After analysing the requirements and selling insurance, you can gain the following benefits with RenewBuy.
- Free POSP certification under IRDAI guidelines
- Attractive monthly pay-outs
- Digital passbook to track your business
- Dedicated relationship manager support
Steps to Become an Insurance Agent at RenewBuy
RenewBuy offers the partner POSP advisors a good commission on each policy sold. Becoming an insurance agent or POSP advisor at RenewBuy is possible by following the simple steps mentioned below.
Create Account
Create an account by visiting our official website or downloading the RB partners application. Just provide the required information, and you are ready to go!
Document Submission
Submit the required documents as asked, including Aadhaar Card, PAN Card, 10th certificate, etc.
Verification
The quality check team at RenewBuy will asses and verify all the details provided.
Online Training & Examination
Your training 5 days process will begin online. After that, you must qualify for an examination to acquire the various certifications. Congratulations, you are a POSP advisor now and can Start Selling Insurance!
Bottom Line
Multiple insurance jobs in various insurance companies can help you gain a secured career in insurance. An insurance agent has a continuous earning resource and can pursue bigger objectives. While you get an authorised license to sell insurance policies from a definite insurer or different direct-to-customer insurance companies. Understanding an insurance agent's roles and responsibilities makes it worth being an insurance agent. When you know the awesome perks of insurance jobs, become an insurance agent today!