In a world with growing concerns over health risks and rising treatment costs, health insurance is a vital tool in financial planning. However, whether it is due to a lack of education, anxiety about the criticality of insurance or the fear of getting it wrong, purchasing insurance can be daunting for many.
Rising to this occasion and helping potential buyers purchase the best insurance for their needs, insurance agents play an instrumental role in buying and claiming insurance. But who are they, what is their role, and what is the process to become one? Keep reading to find out.
Who is an insurance agent, and what is their role?
An insurance agent is a trained professional, certified and licensed to sell insurance policies directly to customers. They are responsible for showcasing the policies offered by affiliated insurers, understanding the customer’s needs, suggesting the best policy based on their needs, explaining policy details, offering financial advice, helping with the purchase process, and selling the policy. However, an agent’s role does not end there; it also continues to help their customers during the claims process.
What are the types of agents?
Suppose you are looking to become an agent. In that case, there are two career paths based on who you wish to work for, and other than that, there are several specialisations you can choose from in terms of the type of insurance. For example, a health insurance agent who deals in health insurance or a life insurance agent who deals in life insurance.
These are the two career paths you can take as an insurance agent:
- Exclusive agents
Exclusive or captive agents are representatives of a single insurance provider and only sell policies from them.
- Independent agents
On the other hand, an independent agent is not beholden to any particular insurance provider and sells policies from affiliated insurers.
How do you become an insurance agent in India?
In India, the eligibility criteria and requirements to become an agent are set up by the regulatory authority for insurance, IRDAI. The IRDAI is responsible for regulating and overseeing the sector’s development. While certain requirements exist, they are relatively simple and with training from the insurer, anyone can become an agent.
Eligibility Criteria
- Be at least 18 years old.
- Complete your 10th or 12th standard based on where you are from.
- You must have an Aadhar and PAN card.
- You must complete the mandatory practical training with your preferred insurance provider.
- You must attempt and clear a licensing examination.
Step-by-step guide to becoming an insurance agent
- Ensure that you fulfil the above-stated eligibility criteria.
- Do your research and find an insurance provider you want to work for.
- Once you have chosen an insurance provider you would like to work for, visit their website and set up an appointment for training.
- Complete your training with them and prepare for the exam.
- Once you are prepared, attempt the exam and clear it to receive a license.
- Then, sign a contract with the insurer and start your journey as an agent in insurance.
Conclusion
Becoming an insurance agent is a highly beneficial career option, whether it is due to its unmatched flexibility, low barriers to entry, or the financial benefits it offers. All these factors and the critical role agents play in helping prospective customers purchase the right policies to make insurance an attractive career option for many. By following this step-by-step guide, you can seize the opportunity to enter a profession that offers financial benefits and the freedom to chart your course.
So follow these guidelines and take the first step to becoming an agent today.
