Life Insurance Corporation of India (LIC) is one of the oldest and largest insurance agencies in India. It offers financial safety and security to millions of buyers or policyholders. In addition, it also offers opportunities for individuals to earn a stable income. One may achieve a financial stability by becoming an LIC insurance agent. It is a pathway to generate a passive income. An individual may secure a promising future by selling insurance products as an LIC insurance agent.
An LIC agent brings the insurance agency and consumer together by selling insurance products. The insurance agent advises buyers to choose the insurance product as per their requirement. He further helps the buyer fill up the application form and receive the compensation at the time of filing the claim.
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An LIC insurance agent may earn a considerable income by selling insurance products. An insurance agent has the opportunity to make a robust income by earning a commission on the insurance product he sells. The work of an LIC agent is far different from a salaried job. The income in the salaried work is fixed. However, an LIC agent may grow his income by selling more insurance products. He may build a strong portfolio of the policies he sells. This helps in convincing the client to buy the insurance product.
An LIC agent can earn the reward as long as the policy is active and the consumer pays the amount. It simply means that the policy that an agent sells becomes the source of income via renewals.
LIC offers a variety of insurance products to meet the demand of buyers. It offers different kinds of plans. This includes term insurance, endowment plans, health insurance, pension policies and more. Therefore, the LIC agents can have a vast portfolio to offer these products to different buyers. This allows an LIC insurance agent to tap into the broader market and understand the demand of people. It also improves the potential of the agent to secure policies and sell them to the clients.
Nowadays, people understand the need for insurance products during a financial emergency. They are interested in buying insurance products if they are guided well. The growing demand for insurance products secures a promising opportunity for the LIC agent to approach such people and sell them insurance products according to their needs. This helps in increasing the possibility of passive income.
LIC is backed by the government of India. Therefore, the people have a high level of trust and credibility in LIC. In addition, people give their first preference to the insurance provider backed by the government. Hence, the LIC agents may sell multiple products by educating people how on their products are supported by the government agency. People shall feel more secure in buying such products. This credibility shall further help the LIC agents to attract the client and sell the insurance products.
A life insurance agent may become a PoSP (Point of Sales Person) agent. A PoSP is a new type of agent introduced by IRDAI. A PoSP agent may sell different kinds of insurance policies from many insurance companies. However, a LIC agent may only work with one company and sell its products. An LIC agent may also work as a PoSP agent and sell the insurance product of another insurance company. One must follow the below-mentioned steps to become a PoSP agent.
A PoSP agent is better than an LIC agent. The PoSP agent may sell a variety of insurance policies. He may sell the policies of different insurance companies. However, an LIC agent may only sell insurance policies of LIC (Life Insurance Corporation of India). Therefore, an LIC agent has less earning scope. At the same time, a PoSP agent may increase his earnings by selling products of other insurance companies. It also depends on the type of policies which differentiate between a PoSP and an LIC agent. PoSP agent has different policies and options to sell. However, an LIC agent has very less options. Hence, becoming a PoSP agent is better than becoming an LIC agent.
PoSP (Point of Sale Person) is a new and another type of license. A person can get this type of license from the insurance company. The IRDAI (Insurance Regulatory Development Authority of India) created PoSP in 2015. One may become a PoSP agent in order to enter the insurance career. Moreover, an LIC agent may also work as PoSP agent and sell insurance products for many companies. For this, they need to attend the training session and examination conducted by the insurance company. Once, they clear the exam they may get the licence of selling insurance products for various companies. This helps the agent to grow the income.
However, one must understand the importance of becoming a PoSP agent. An LIC insurance agent is connected with one insurance agency and sells the product of the same insurance company. The insurance agency provides the category of product to the insurance agent. Yet, a PoSP insurance agent may work for multiple companies.
The insurance buyers nowadays demand more. They want many kinds of options to choose from. So, an LIC insurance seller must be familiar with the insurance products. He should have the right to deal with each kind of product. This is why the IRDAI created PoSP. The PoSP agent may sell multiple kinds of insurance products for different agencies. This includes life insurance, car insurance, health insurance etc. Thus, PoSP is considered a wider concept than an LIC insurance agent. A person can make more income from rewards by becoming a PoSP agent as compared to normal insurance agent.
A person must meet the following criteria in order to work as an insurance PoSP. The person meeting the following criteria may apply for a career as a PoSP agent.
A person fulfilling the aforementioned criteria may enrol to become an agent. Now, an insurance agency may provide work to freshers, college students, homemakers, and retired employees. However, a person who wishes to become a PoSP agent must clear the exam.
Nowadays, people are more interested in becoming the PoSP agent after the IRDAI created the PoSP license. It offers great opportunities to enter the insurance career and increase the income by selling insurance products. The insurance companies provide training to the persons who want to become the PoSP. The training and modules help the people to understand the importance of insurance products. An LIC agent may also become a PoSP agent while selling life insurance policies.
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A. A person who wants to become a PoSP insurance agent must undergo the IRDAI’s training module. This includes insurance basics, types of policies, rules and regulations, process of claim and issuance of insurance etc.
A. A person needs to study the following.
A. No, an 8th-passed person neither becomes a PoSP nor applies for the program. A person must be at least 10th or metric passed to apply for the PoSP program.
A. 15 hours is the minimum training duration of the PoSP program.
A. The person has to reappear for the exam if he fails. He shall only become the PoSP upon clearing the exam.
A. A person may improve his knowledge and advance his selling and servicing skills. In order to polish the skills, a PoSP may join the training programs and events conducted by the insurance companies. Such programs include advanced knowledge of insurance. The training programs guide the PoSP on how he may handle complicated cases related to insurance premiums or claims.
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