If you are planning to start your career as an insurance agent? This blog will take you through everything you need to know about how to become an insurance advisor and related pros and cons.

Becoming an insurance advisor in India has emerged as a promising career option. With more people becoming aware of the importance of financial security, health coverage, and long-term savings, insurance is no longer deemed just a backup plan - it is now tied to every person's financial portfolio.

Who is an Insurance Advisor?

An insurance advisor is also called an insurance agent. They are professionals who help people choose the right insurance plans across the industry. They assess the customer’s needs and suggest the best policy accordingly. They also help with the paperwork and even provide support during the claim process.

Difference between Traditional Insurance Agent & PoSP Insurance Agent

Traditional insurance agents: A traditional insurance agent works mostly offline and meets clients in person to offer suitable insurance plans. Mandatory to complete 15 hours of IRDAI (Insurance Regulatory and Development Authority of India)-approved training and pass an IRDAI exam. Usually tied to one insurer, they can sell various insurance products but deal with more paperwork and have a limited local client base.

POSP insurance agents: A POSP insurance agent, on the other hand, is a new and simpler way to become an insurance advisor - approved by IRDAI. The full form of POSP is the Point of Sales Person. A POSP insurance agent can sell different types of insurance at their own pace, with less training and paperwork. This makes it easier and faster for people to start a career in insurance.

Benefits of Being an Insurance Agent

Flexible Work Life: It offers flexibility at its best. You can work either full-time or part-time, from an office or the comforts of your home. Moreover, you can also choose your working hours. No wonder it is an excellent career option for students, homemakers, or retirees.

Easy to Start: Learning how to become an insurance agent is a low-cost and straightforward process. You do not need to have a degree or years of study.

High Earning Potential: One of the key benefits of being an insurance agent is the potential for a good income. Although there is no fixed salary, you earn based on the number of policies you sell. So, the simple formula is - the more you sell, the more you earn.

Career Growth: Top-performing insurance advisors can ascend to leadership roles and further develop their careers. Insurance companies often give awards and recognition to their best agents.

Professional Satisfaction: As an insurance advisor, you help people choose the right protection plans for their life, health, and future. This gives a strong sense of personal satisfaction, knowing you are making a real difference in their lives.

Income Potential of an Insurance Agent in India

The income potential of an insurance advisor in India depends on various factors. It includes the following:

  • The number of policies sold by them.
  • Type of insurance (life, health, motor, etc.) they deal with.
  • Their client base

Many reputable platforms, such as Policybazaar.com, offer POSP opportunities that allow you to start earning quickly and expand your digital portfolio.

Challenges Faced by Insurance Agents

While there are many benefits to becoming an insurance advisor, there are challenges too:

  • High Competition: With thousands of insurance advisors in the market, standing out can be tough. Digital platforms, direct-to-customer models, and aggregators also add to the competition.
  • Rejection and Delayed Sales: Insurance is not always a priority for people. Convincing clients is likely to take time, and many potential sales may not convert.
  • Income Instability: Especially for new agents, income can be irregular. Since it is a commission-based job, agents must consistently generate business to earn well.
  • Lack of Awareness Among Clients: Many clients do not fully understand the importance of insurance or may have misconceptions. Educating them requires time, patience, and good communication skills.
  • Regulatory Compliance: Insurance is a regulated sector. Advisors must stay updated with IRDAI rules and ethical practices and maintain proper documentation.

Final Thoughts

Becoming an insurance advisor in India is highly rewarding. It offers freedom, financial independence, and the opportunity to help people secure their future. All required to become a successful insurance advisor in India  - consistent effort, good communication skills, and a willingness to adapt to evolving client needs and technological advancements.