About Insurance advisor
An insurance advisor is an intermediary who brings together the insurance company and the customer and helps in generating a sale. Furthermore, the advisor is tasked with advising clients on the right product, assisting in filling up of forms, helping clients at the time of a claim, etc. Thus, an advisor plays multiple roles.
Why people choose a career in insurance?
Individuals favour a career in insurance because of the various benefits it has. As a financial advisor, individuals can –
- Be their own boss and work as per their own will
- Have an opportunity to earn unlimited income
- Earn rewards and recognitions beyond the attractive commission earned on the policies
Thus, due to these benefits, people want to become an insurance advisor.
Steps to become an insurance advisor with a specific insurance company:
As per the guidelines laid down by the IRDA (Insurance Regulatory and Development Authority), there is a process of becoming an advisor. To become an advisor you have to register yourself with a particular insurance company, undergo a specified insurance training, sit for an examination at a specified venue and pass the examination. Once you follow this process and clear the examination, you can become an insurance advisor.
Let’s understand the process in details –
- If you meet the qualifying criteria, you have to enrol for the agency.
- You have to submit your KYC details and documents and register with an insurance company whose advisor you want to become
- After you have successfully registered, you have to undergo a training program of a specified duration. The duration depends on the type of agency which you want. This training is a class-room training which should be taken offline
- There is an examination held after your training. This examination is prescribed by the Insurance Regulatory and Development Authority of India (IRDAI). You can take the exam online or offline through online exams are more popular.
- If the exam is cleared you can get your license and become an advisor.
Once you enrol with any insurance company to become an advisor, you need to clear an IRDAI exam as well, to get your license to sell insurance policies.
Another alternative, besides the PoSP certification, is to become a traditional insurance advisor with a particular insurance company. As a traditional insurance advisor, you would be able to sell the insurance products of that particular insurance company only with which you enrol.
To become a insurance advisor also, there are two specific eligibility criteria to become an advisor:
- You should be at least 18 years old
- You should have passed at least Class 10 if you live in a rural area and Class 12 if you live in an urban area.
Anyone who fulfils these basic criteria, can enrol to become an advisor with any insurance company. Thus, insurance agency promises jobs for freshers, jobs for fresh graduates, part time jobs for graduates, jobs for college students. Even housewives and retired individuals can opt for an insurance agency.
After fulfilling the eligibility criteria, you can enrol with a particular insurance company. If you wish to become a life insurance advisor, you need to enrol with a life insurance company and if you wish to become a general insurance advisor, you need to enrol with a general insurance company.
After clearing the mandatory IRDA exam, you get a license to sell insurance policies as an insurance agent.
Note: Life insurance agency will provide you with a license to sell life insurance policies ONLY and a general insurance agency will provide you with a license to sell general insurance policies ONLY. A composite license provides you with a license to sell both life and general insurance products. However, you can become an insurance agent from only 1 life insurance company, 1 general insurance company and 1 stand-alone health insurance company.
What does an insurance advisor earn?
An insurance advisor earns a commission on the amount of premium generated by him. Different insurance plans have a different commission structure. As an insurance advisor, you can earn a commission ranging from 5% to 30% of the premium you bring in from different insurance policies.
Other than commissions from your first year premiums, you would also be able to earn from your renewal commissions. Each and every company has a different structure for their renewal commissions for insurance advisor, which depends on the products as well. Life insurance advisor would have a completely different renewal commission structure from general insurance advisor.
Moreover, there are rewards and recognition programmes for advisors who perform well. These programmes allow insurance advisors to earn extra commissions, gifts, gift vouchers and also international trips.
There is an international forum called Million Dollar Round Dollar wherein you can qualify as an insurance advisor. This is a very prestigious forum for an insurance advisor which everyone endeavours to qualify. However, there is a criteria every year for each and every country which an insurance advisor would have to fulfill to be able to qualify.
For example, in the year 2019-20, if you earn:
- INR 17,30,000 from your first year insurance commissions, then you can qualify for MDRT
- INR 51,90,000 from your first year insurance commissions, then you can qualify for COT (Court of the Table) and
- INR 1,038,000 from your first year insurance commissions, then you can qualify for TOT (Top of the Table)
Other than increased income, this is a very prestigious forum for an insurance advisor and qualification would enhance the confidence as well.