Are you someone who can sell a cart without a horse, a shrewd negotiator who can sell anything? Well, if you have those skills and want to do something that can spread goodness and happiness while also bringing in benefits, both monetary and otherwise, becoming an insurance agent is an excellent choice for you.
Being an independent insurance agent for nearly two decades, I have sold hundreds of plans for almost a dozen companies. I started this journey to get an extra income, but in an unstable job environment, it offered the safety net to help my family walk through them comfortably.
How to Become an Insurance Agent?
An insurance agent or advisor identifies the best solution or plan for an insurance buyer’s needs based on their budget and helps complete the application to buy one.
Some insurance agents represent a single insurer, while some independent agents represent multiple insurers at a time.
There are a few eligibility criteria for becoming an agent. These include being at least 18 years old and having completed at least 10th grade if you are from a rural location and 12th if you are from an urban area. It also requires them to pass a simple exam to be certified by the insurance regulatory organisation of IRDAI.
The following are the steps to follow to become an agent in 2024:
1. Decide on the insurer & register
You need first to find an insurer who provides good benefits and flexibility. Once you have selected the insurer, log on to their website and fill out the insurance agent application form.
2. Training
After filling out the form with basic details, you must complete online or offline basic training as mandated by the IRDAI. This training can usually be completed in 3-4 weeks.
3. Pre-licensing Exam
After completing the training and receiving a certificate, you must pass a pre-licensing exam called the IRDA exam or IC-38. The exam is conducted online, takes about an hour, and has 50 questions, out of which you need to get at least 17 right.
4. Post licensing
After completing the exam and scoring at least 17, you will be given a license and be eligible to work as an insurance agent
What are the benefits offered by becoming one?
Depending on the insurer(s) you represent, the benefits can differ as they offer money on a salary-only, salary-and-commission, or salary-and-bonus basis.
I work for Niva Bupa as a medical insurance agent, and they offer a high salary, a higher commission percentage, and better perks and benefits. But these are some of the main advantages of being an insurance agent.
- Independence
- A second source of income
- Opportunity to help others
- Passive skill development
- Job Security
These are some of the main benefits of becoming an independent insurance agent. This includes flexibility in working hours, lax minimum age and educational qualification, becoming one’s own boss, passive skill development, and a safety net in the form of job security.
What are the different types of Insurance agents?
You can choose to become three kinds of insurance agents and have a different experience based on that.
1. Internal insurance sales agent
An internal agent is a full-time employee of an insurer and offers plans only from that insurer. They are typically offered sales commission along with a salary and other benefits.
2. Independent insurance agent
An independent insurance agent is contracted with several insurers and can offer a custom plan based on these offerings to best suit the purchaser’s needs.
3. Insurance broker
A broker offers numerous products from different insurers and allows the insurance purchaser to compare and buy plans from different insurers quickly.
Conclusion
These are the different types of insurance advisors, including independent agents and insurance broker, how to become one, and the main benefits of becoming one. This will help you figure out how to approach becoming an agent in 2024 and what to remember when doing so. This will help you map your journey and choose which one to become.
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