Life is the most valuable gift of Nature, especially Human Life. In the present day of modern world, Human Life is dependent on three pillars of strength which are economic stability, health benefits and social security which in aggregate results in HUMAN LIFE VALUE. Every human being must understand the worth of his or her HUMAN LIFE VALUE to make it more precious and worthy.
In the present day, the world of economic instability and insecurity, the life of a human being must be strengthened in both aspects with a guaranteed form. This is where the whole system of insurance comes into play.
The total mechanism of insurance, in general, has been segregated into three major parts which are:
(I) LIFE INSURANCE,
(II) HEALTH INSURANCE and
(III) GENERAL INSURANCE
To make the system much more efficient it has been equipped with an external task force in form of insurance advisors like life insurance agents, health insurance agents and general insurance agents.
So, to become a successful life insurance agent in India there are some protocols that an individual has to abide by, which will boost the progress to achieve the one which probably can be the most successful and respectable career.
Who Life Insurance Agent?
A life insurance agent is an individual who can be a professional licensed by the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI), which is a statutory body formed under an Act of Parliament under the IRDAI Act, 1999 to provide the expertise and guidance to the persons asking for insurance covers as per their needs under one of the various insurance companies governed by IRDAI.
How to get a Life Insurance Agent License?
A person who wants to proceed further as a life insurance agent must be at least a matriculation pass out with the present age of 18 years on the date of applying for the examination date. The pre-recruitment examination is conducted by IRDAI in collaboration with the Insurance Institute of India.
A new life insurance agent must attend the pre-recruitment training program of the insurance company under which the career of that person as a life insurance agent will be pursued.
Every individual should attend these training programs with discipline and dedication before attending the pre-recruitment examination so that the processes get very much adaptable to the examinee.
Apart from the training programs, some sets of modules are to be studied with extreme concentration and perseverance for success in the examination. The candidate must achieve at least 35% to pass the examination and qualify for the IRDA license.
Qualities of good Insurance Agent:
An insurance agent must be a person with the qualities to follow the steps of INDEPTH to become the most proficient and pragmatic towards flourishing an honourable and respectable career. The process of INDEPTH has been discussed as under:
- The life insurance should be a subject of knowledge sharing and awareness program with INTEGRITY and NOBILITY while approaching the prospective person willing to take life insurance.
- The life insurance advisor must be a person of DEVOTION towards the work to be performed for the people and services to be provided.
- The level of ENDEAVOUR to achieve the goal of convincing the people with all information related to life insurance should be optimum.
- Every query related to the life insurance should be dealt with PERSEVERANCE so that the outcome remains positive for the person whom the plan to be executed.
- Lastly the whole procedure must be completed with TRUTH and every word related to the activities should be uttered with HONESTY.
WHY SHOULD A LIFE INSURANCE AGENT FIND A GOOD LIFE INSURANCE COMPANY?
All the life insurance companies in India are governed by the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI) and they operate as per the guidelines set by IRDAI.
But there are some prime factors based on which a person who wants to become a successful life insurance agent must choose the life insurance company with which he or she wants to launch the career. These prime factors are as under:
COMPANY REPUTATION AND BRAND VALUE
- SOLVENCY MARGIN
- CLAIM SETTLEMENT RATIO
- POLICY CUSTOMISATION AND RIDERS
- COST OF COVERAGE-VALUE OVER PRICE
- SPECIALISATION
- BENEFIT PAYOUT OPTIONS
If the above-mentioned factors are adverse compared to the standard pertains as per parameters of the whole insurance industry then the career of an individual as a life insurance agent can come into jeopardy and the result will be disastrous.
Apart from this a life insurance agent should always look for a good life insurance company so that the optimum benefits can be given to the insured person based on the standard parameters set by the regulatory authority for the life insurance companies to design the plans.
Regular Activities Of A Life Insurance Agent:
The career of a life insurance agent is full of discipline and concentration which help it to guide the person who wants to become successful. In our modern day world time has become a very precious thing and to get it evaluated in the proper manner every moment should be utilized in a fruitful manner. This process of time utilization can only be successful if it is regimented within a schedule and this will result to routine daily activities. These activities can be charted down as follows:
- FIXED TIME FOR THE COMMENCEMENT OF THE WORK ON DAILY BASIS.
- INTERACTING WITH THE SENIORS AND COLLEGUES ON THE PRODUCTS.
- MAKING CALLS TO THE PROSPECTS WITH KNOWLEDGE AND BENEFITS OF THE PRODUCTS.
- FIXING UP APPOINTMENTS FOR LIVE SESSIONS WITH THE PROSPECTIVE CLIENTS ON THE PRESENT TOPICS RELATED TO INSURANCE AS AN AWARENESS PROGRAM.
- KEEPING ONE UPDATED WITH EVERY ALTERATION AND ADDITIONS RELATED TO THE POLICIES OF THE COMPANY.
Prospect of a Life Insurance agent as a part-timer:
Every job in the world of today demands complete dedication and engagement to make one reach at its highest point as per the potentiality of an individual and career building as a life insurance agent is also not an exception. But this is one such profession which can also be done with another profession unless it collides with the policies of that particular occupation.
There are individuals who started their careers as a part-timer but later on with success, rewards and recognition changed the whole dimension of their outlook towards this profession.
The agency of life insurance is probably the best model of doing a job as a professional with full of opportunities, only created by that individual who is actively following the daily regimen of regular activities and the process of INDEPTH whether worked as a part-time or as a full-time professional life insurance agent.
Can Life Insurance advisor be a good career?
The world at present is a place of immense opportunities but in many occasions it is found that every individual is trying to pursue their career as an entrepreneur. The career of a life insurance advisor gives exactly the same opportunity to an individual.
It is one such profession where a person can improvise each and every step of the plan according to the needs required to make it a success.
A life insurance agent can become one of the most important people of his or her client by providing the precious guidance related to the financial planning and providing financial security in case of any unforeseen circumstances. These kinds of activities help the career of a life insurance advisor achieve new heights.
Apart from the social recognitions a life insurance advisor gets felicitated with numerous internationally acclaimed recognitions like MDRT (Million Dollar Round Table), COT (Court of the Table) and TOT (Top of the Table).In short the career as a life insurance agent is an opportunity to achieve the rewards and recognition on the global stage.
LIFE INSURANCE AGENT COMMISSION:
In India the commission of a life insurance agent is considered as an income from other sources as per the Income Tax Act, 1961. The rate of commission in general is determined as per the term and type of the policy plans.
The maximum commission rate that one can get on a regular premium payment basis for a policy of 15 years ranges between 30 to 35 percent. In case of endowment policies the first year commission rate ranges between 25 to 30 percent. As per IRDA guidelines dated April 1, 2017 the life insurance agent commission structure has been fixed as per the chart below:
WHO CAN BECOME AN INSURANCE AGENT?
A person or an individual who is above 18 years of age and has done the matriculation successfully with INTEGRITY-NOBILITY-DEVOTION-ENDEAVOUR-PERSEVERANCE-TRUTH-HONESTY (INDEPTH) can become an insurance agent for life, health and general insurance. Apart from these qualities one should have communication skills and patience with knowledge of the plans, products and policies.
Lifestyle of A Successful Life Insurance Agent:
The life style of a successful life insurance agent should be disciplined and regimented. The values and principals of the life should be firm and strong then only an individual can become a successful life insurance agent.
These components of the character make the personality an individual more dignified and poised. Success is one thing which can be achieved in any means but it is sustainable and ascending only when it is earned with INTEGRITY-NOBILITY-DEVOTION-ENDEAVOUR-PERSEVERANCE-TRUTH-HONESTY (INDEPTH) accompanied by discipline and decorum.
Being a life insurance agent what common difficulties one can face initially and how it can be resolved?
In the present world of digitization and technological advancement, every information is accessible to every individual and this is also very much applicable in the case of insurance products and policies as well.
This fast and easy accessibility of information on many occasions becomes an obstacle of its own due to the presentation of lucrative products with a lack of complete information.
This kind of situation initially becomes a difficulty for a life insurance agent to arrange the presentation of the products before a prospective client because either it is found that the prospect has already taken a plan which is not at all required as per the requirement or the information that have been gathered actually got interpreted in a wrong manner.
So to resolve the problems which are related to the negative behaviour of the prospective client towards the products and plans or adamant approach to any sort of proposal a life insurance agent should always make oneself presentable as a financial planner and assess the actual need of financial protection and security with the method of HUMAN LIFE VALUATION.
The method of HUMAN LIFE VALUATION is a process based on the calculations of total liabilities and expenses handled and incurred by an individual on the present date and an estimated value of the same at the point of expiration of occupational life.
This total method makes it very much clear that how much protection or savings one needs to counter these liabilities and expenses in the longer version. If this is done successfully then it has been found that the rest of the part becomes more cooperative from the part of the client itself to close the deal successfully.
.TIPS TO BECOME A SUCCESSFUL INSURANCE AGENT:
To become a successful agent in case of life insurance company or a standalone health insurance company or a general insurance company every person whether an individual or any other legal entity one must follow the below mentioned points:
- SKILL OF COMMUNICATION WITH INDEPTH KNOWLEDGE ON THE SUBJECT
- PROFESSIONALISM AND PUNCTUALITY
- COMMITTED APPROACH TOWARDS SOLVING EVERY POSSIBLE PROBLEMS
- ABILITY TO UNDERSTAND THE REQUIREMENT AND PROVIDING SOLUTIONS AS PER
- PERSISTENCY AND CONSISTENT PERFORMANCE
How to sell life insurance:
Life insurance policies are considered to be a push selling product so every time a life insurance agent approaches one to sell the same will face a chance of rejection in most of the occasions. So it is always advisable not to go for any selling but go for an awareness program as a professional life insurance agent by following the below mentioned steps:
- MAKE COMMUNICATION WITH THE MAXIMUM NUMBER OF PEOPLE
- ALWAYS APPROACH TARGET AUDIENCE
- ALWAYS ASK FOR REFERRALS FROM THE KNOWN ONES
- PITCH THE PRODUCT POLICIES AND BENEFITS AS AN AWARENESS PROGRAM
- NEVER FEEL RELUCTANT TO HELP ONE IN CASE OF ANY PROBLEMS RELATED TO INSURANCE
- TRY TO MAKE COLD CALLS WITH PREPARED SRCIPTS
- FOLLOW THE TRAINING PROGRAMS OF THE INSURANCE COMPANY ON A REGULAR BASIS FOR UPDATED KNOWLEDGE AND GUIDANCE.
Frequently asked questions and answers:
Q.WHO CAN BECOME A LIFE INSURANCE AGENT?
A. AN INDIVIDUAL OF MINIMUM 18 YEARS OF AGE AND SUCCESSFULLY DONE THE MATRICULATION CAN BECOME A LIFE INSURANCE AGENT.
Q.IS THERE ANY FEES FOR THE ENROLMENT?
A. THERE IS NO FEES FOR ENROLMENT BUT A FEE OF RS.750/- IS TO BE PAID FOR IRDA EXAMINATION.
Q. WHAT IS THE MINIMUM QUALIFYING MARKS FOR IRDAI EXAMINATION?
A. MINIMUM QUALIFYING MARKS IS 17 OUT OF 50.
Q. CAN ANYONE TRANSFER THE IRDA LICENCE FROM ONE INSURANCE COMPANY TO THE OTHER?
A. YES IT CAN BE DONE SUBJECT TO THE ISSUANCE OF THE NO OBJECTION BY THE EXISTING INSURANCE COMPANY.
Q. CAN A LIFE INSURANCE AGENT BECOME A HEALTH INSURANCE AGENT?
A. YES A LIFE INSURANCE AGENT CAN ALSO BECOME A HEALTH AND GENERAL INSURANCE AGENT.
