Becoming A Life Insurance Agent: A Guide For Indians

Becoming a life insurance agent in India can be a challenging but rewarding career choice. Life insurance agents help customers select the right insurance product for their life, health, motor, and financial needs. To become a life insurance agent in India, you must meet certain eligibility criteria, complete training, pass an exam, and obtain a license. Here's a step-by-step guide to help you get started:

Eligibility Criteria:

- Education: You need to have a secondary education (10th grade) certificate.

- Age: You must be at least 18 years old.

Training and Certification:

Complete the training and obtain certification from the Insurance Regulatory and Development Authority of India (IRDAI). This typically involves a 15-hour training course, which can be done online or offline, followed by an exam.

State License:

Qualify for and obtain a state license by passing a state-level exam. This license allows you to sell state-regulated insurance policies.

Choose Your Path:

Decide what type of insurance agent you want to be (internal insurance sales agent, captive insurance agent, or independent agent/Point of Sales Person).

Take the License Exam:

Register on the IRDAI website and complete the pre-licensing exam to obtain your insurance license. This exam covers various insurance products, and you will need to score at least 17 out of 50 marks to pass.

Apply for Your License:

Once you pass the exam, gather the necessary documents, such as identification, educational certificates, and exam scorecards, and submit your application to the IRDAI. After approval, you will be legally authorized to sell insurance policies in India.

Education requirements

To become a life insurance agent in India, you must meet certain educational requirements.

The minimum qualification required to become a life insurance agent in India is a secondary education (10th grade) certificate. However, having a college degree can boost your sales skills and credibility with customers. A college degree can also help you establish a trusted relationship with customers and provide you with knowledge of state-related licensing guidelines.

In addition to the basic educational requirements, you must also complete certain training modules and exams to obtain your licence. The Insurance Regulatory and Development Authority of India (IRDAI) offers online training for Point of Sale Persons (POSP) and insurance advisory agents. The training is available in a variety of languages, including Hindi, English, Marathi, Gujarati, Bengali, Tamil, Malayalam, Punjabi, and Telugu. The training typically takes 15 hours to complete and can be done within two to three days. After completing the training, you will be provided with a certificate.

To obtain your licence, you must then pass a pre-licensing exam. This exam covers various insurance products, such as whole life, health, or accidental insurance. You can register for the exam by logging into the insurer's website and completing the required training modules. Study resources such as e-books, tutorials, and online courses are available to help you prepare. To pass the exam, you will need a minimum score of 17 out of 50 marks.

Once you have passed the exam, you can apply for your life insurance broker licence. You will need to submit necessary documents, such as identification, educational certificates, and exam scorecards, along with the required fees to the IRDAI. Upon approval, you will be legally authorized to sell insurance policies in India.

IRDAI certification

Training:

Before taking the IRDAI exam, candidates must complete a specific number of training hours at an IRDAI-approved institute. The training requirement depends on the type of license the candidate is pursuing. For a General/Life insurance license, 50 hours of training are needed, while a Composite license requires 75 hours of training. The training will cover various topics related to insurance products, guidelines, and policies, preparing candidates for the licensing exam.

IRDAI Exam:

The IRDAI exam is a critical step in obtaining certification. Candidates must pass the IC33 exam for a Life Insurance license or the IC34 exam for a General Insurance license. These exams are designed to test the candidate's knowledge of insurance products, regulations, and policies. The exams are objective, and a minimum passing score is required.

State-Level Exam:

In addition to the IRDAI exam, candidates must also qualify for a state-level exam to obtain a license to sell insurance. This exam will cover state-specific regulations and policies related to the insurance industry.

Licensing:

After successfully completing the training and passing the IRDAI and state-level exams, candidates can apply for their insurance license. The application process typically involves submitting necessary documents, such as identification proof, educational certificates, and exam scorecards, to the IRDAI. Once the application is approved, individuals can legally sell insurance policies in India.

POSP Certification:

The IRDAI licenses individuals as Point of Sale Persons (POSPs) to sell multiple insurance products from different companies. Obtaining a POSP certification allows individuals to represent and sell insurance for various insurance providers, providing more career flexibility and opportunities.

Ongoing Training:

Life insurance agents are expected to stay updated with new products and services in the industry. Ongoing training is provided by insurance companies, including classroom training, online modules, and on-field training, to ensure agents are knowledgeable about the latest developments in the insurance sector.

In summary, obtaining IRDAI certification is a comprehensive process that involves training, examinations, and licensing. It is a crucial step in becoming a life insurance agent in India, ensuring that agents are well-equipped to sell insurance policies and provide effective solutions to their clients.

State license

To obtain a state license, you must qualify for and pass a state-level exam. Each Indian state has a license for the insurance business, and passing the exam will allow you to obtain a license to sell insurance as per your state's regulation policies. The exam is in an objective format, and you need to score a minimum of 17 out of 50 marks to pass. Once you have passed the exam, you will be qualified to work as an insurance agent in your state.

Training and exam

To become a life insurance agent in India, you will need to complete a training course and pass the IRDAI examination. The IRDAI (Insurance Regulatory and Development Authority of India) is the insurance regulatory authority in India. The IRDAI website offers online training for PSOP (Point of Sales Person) and insurance advisory agents in a variety of languages. The training typically takes 15 hours and can be completed within two to three days. After completion, you will be provided with a certificate.

The next step is to take the pre-licensing exam. This exam covers various insurance products like whole life, health, or accidental insurance. You will need to register on the insurer's website and complete the required training modules online. There are also many study resources available, such as e-books, tutorials, and online courses. To pass the exam, you will need a minimum score of 17 out of 50 marks.

Training Topics

The training will cover a range of topics, including the basics of insurance, policy types, the process for issuance and claims, and rules and regulations.

Applying for a license

Once you have passed the exam, you can apply for your life insurance broker license. Gather the necessary documents, such as identification, educational certificates, and exam scorecards. You will also need to provide proof of identity, which can be in the form of an Aadhaar Card or PAN Card. Submit your application, along with the required fees, to the Insurance Regulatory and Development Authority of India (IRDAI).

Upon approval, you will be legally authorised to sell insurance policies in India. The IRDAI will award you with a license to practice as a certified insurance agent. This license will be valid for three years from the issue date.

The IRDAI's website offers online training for those wanting to become insurance agents. The course material is available in a variety of languages, including Hindi, English, Marathi, Gujarati, Bengali, Tamil, Malayalam, Punjabi, and Telugu.

Frequently asked questions