A Guide to Becoming an Insurance Advisor in India

Insurance is one industry that’s mostly unaffected by the economy. As a career, insurance has become mainstream, and every passionate individual wants to get into it. Basically, an insurance advisor/agent is someone who works for insurance companies to advise clients on products. A good insurance advisor not only recommends plans that fit their client’s needs but also answers their questions about the policies and educates them on how they work. Including life, health, liability, and vehicle insurance, insurance agents offer a wide range of products. In this article, let’s explore how to become an insurance advisor in India.

Defining an Insurance Advisor

An insurance advisor or insurance consultant provides expert advice and guidance regarding investments in a variety of insurance schemes.

• For the services offered by insurance advisors in India, a fee or charge is imposed on the customer/investor.
• The advisor must hold a license for the practice of the same or recognised qualification in the field. He is also known as an insurance consultant.
• Among the functions of an insurance advisor are intermediation, sales, compliance management, consulting, and advisory services.

Types of Insurance Advisors

• Internal Insurance Sales Agent: This insurance consultant works full-time for an insurance company. During their work hours, they only provide advice and consultation relating to the company’s policies.
• Captive Insurance Agent: Agents who represent only one line of insurance products are referred to as captive insurance agents.
• Independent Broker/Point of Sales: Agents who are IRDAI (Insurance Regulatory and Development Authority of India)-approved and serve as point-of-sale can offer their clients plans from several insurance providers. A PSOP (Point of sales person) receives a license code associated with IRDAI, which allows them to work with multiple businesses and sell multiple insurance plans to customers simultaneously.

Eligibility Criteria

To become an insurance agent, an applicant must meet a few prerequisites.

• Education: It is required that the candidate has at least completed the tenth standard.
• Age: A minimum age of 18 is required for applicants.
• IRDAI Certification: An IRDAI certification is required.
• State Licence: Every Indian state requires insurance licenses. By state regulations, a license can be obtained by passing the state-level exam.

How to Become an Insurance Advisor in India

• Registration: Apply for an insurance agent role through the insurance website.
• Training: Complete the IRDAI-mandated 15-hour foundational training online or in person.
• Exam for License: Pass the pre-licensing exam, requiring a minimum of 17 points out of 50.
• Receiving the License: After passing the exam, obtain an IRDAI license to work as an insurance advisor/agent.

Responsibilities of an Insurance Advisor

• Develops a clientele through various channels such as word-of-mouth, advertising, direct mail, social media, and group presentations.
• Identifies clients’ insurance needs, and financial goals, and gathers relevant information.
• Offers coverage estimates and assistance in long-term planning.
• Assists with the completion of applications and required documents, securing underwriting approval.
• Provides documentation for policies and plans.
• Regularly checks in with clients to assess changes in their finances, families, or circumstances, modifying insurance plans as needed.
• Facilitates distributions to beneficiaries upon the policyholder’s death.
• Performs additional tasks as required.

Benefits of Becoming an Insurance Advisor

• Be Your Own Boss: Enjoy the freedom of setting your work schedule as a POSP.
• No Time Constraints: Choose to work full-time or part-time with flexible hours.
• Work From Home: Conduct online business conveniently from the comfort of your home.
• Short Training Duration: Complete the mandatory 15-hour IRDAI training to become a POSP.
• High Earning Potential: Income is determined by the number of policies issued, not working hours.
• Minimal Investment: All you need is a smartphone, a reliable internet connection, and 15 hours of training.

Conclusion

Embarking on a journey to become an insurance advisor in India offers numerous benefits, including the flexibility to be your own boss, work from home, and determine your income potential based on issued policies. The process involves simple steps, from registration on the insurance website to completing a 15-hour IRDAI training and passing a licensing exam. With minimal investment and the opportunity for high returns, becoming an insurance advisor provides a lucrative path for those seeking a dynamic and rewarding career in the insurance industry.

Frequently Asked Questions (FAQs)