Insurance sector is booming in India and there is a huge potential to grow as majority of the Indian population doesn’t know the importance of insurance. By becoming an insurance agent one can easily make good money as
part-time or full time. In this article I will try to generalize the process of becoming an insurance agent in India.

Yes, I have seen few of my relatives who are working full time as LIC agents and making good money. Not only as LIC agents, you can become insurance agent of any insurance company in India and the sell policies and make good money.

How To Become Insurance Agent In India

You might be thinking how much money an insurance can make by selling a policy? Then let’s explore that first.

How insurance agents make money by selling insurance policies

Earlier the commission rate was very high, but with the popularity of online platforms to buy insurance, it has come down significantly. But still in case one agent can crack couple of policies, he/she can make good recurring income. Here is an example of LIC Agent Commission Chart 2016.

Premium paying year 1st year Commission On 2nd and 3rd year Subsequent year
5 15 % 7.5% 5
6 18% 7.5% 5
7 21% 7.5% 5
8 24% 7.5% 5
9 27% 7.5% 5
10 30% 7.5% 5
11 33% 7.5% 5
12 years or more 35% 7.5% 5

Note: This data is collected from an online source, for accuracy of data please refer to LIC of India official website.

For every insurance policy your life will be covered with a sum assured value and for that you have to pay a premium amount for a particular period of time. Now this premium amount is collected by the agent or you can directly pay the insurance premium online.

Now for every policy sell through an agent, they will get a commission as per the premium amount and the tenure of the policy. From the above chart it is clear that a policy for more than 12 years term will give good earning opportunity in initial years and the potential earning could be 35% of the premium.

So, that means in case you can sell some goo amount of policies for a longer term, then you can make sure that the earnings will increase. But this is not that easy as now a days there is huge competition among insurance agents and also from various insurance companies.

And people are getting educated about insurance policies and prefer to by their own without the involvement of agent as online insurance plans are very cheap compared to offline insurance policies. But anyway, the purpose of
the article is not to demotivate you, but to help you to make money by becoming an insurance agent in India.

How to become an insurance agent in India

  • The very basic qualification one need is to have 12th pass certificate in urban ares and 10th std passed for rural areas. You can also check for specific insurance company website for any specific eligibility criteria.
  • You can contact your insurer and they will conduct your interview first. If they find you suitable for the position, they will ask you to go for the specific training.
  • You have to gone through some training from an IRDA approved training institute for General/Life insurance licence as per the norms. During that training you will get a chance to learn how things are happening and
    various basics of life insurance.
  • After successful completion of the training you have to attend the Pre-Recruitment examination conducted by the Insurance Regulatory and Development Authority of India (IRDAI). There are separate eligibility and exam for life insurance and general insurance. Better to cross check for specific criteria. E.g. you can check out the LIC website for the eligibility to become an LIc agent.
  • On successful completion of the exam you can become an insurance agent. You will get appointment letter from the branch and then appointed under some development officer.

Example of Insurance Agent Job Notification

You can search for every life insurance or general insurance companies website for career opportunities and get the job notifications easily. E.g. I found the agent recruitment notifications in The New India Assurance Co. official website and here are the details below.

How To Become An Agent?

Your certainly can Become our Agent if – You are outgoing, ambitious to own a business and like meeting people where you can decide your working hours.

Here are simple step-by step guide on How To Become An Agent of ‘New India’.

  1. Age: Completed 18 years
  2. Qualification: Minimum qualification – Passed 10th Std. or Equivalent examination conducted by any recognized Board / Institution.
  3. Training: Pre-recruitment Training will be of minimum 8 hours training at our In-house Training Centre / Branch Office / Divisional Office.
  4. Insurance Examination: To pass examination conducted by Insurance Institute of India or any other Body approved by IRDAI on course of IC34

After completion of above process and passing the examination you will awarded a license issued through IRDAI Portal to work as an Insurance Agent of our Company.

For more details, please visit the official link. You can download the complete job details from that link as well. Similarly if you are trying to become an LIC agent then look at the official LIC Agent Job page. Here is a list of insurance companies in India, you can easily find out the insurance agent job opportunities on their websites.