Difference between LIC and PoSP agent

Difference between LIC and PoSP agent

The LIC and PoSP insurance agent work with insurance companies to sell their products. This includes health cover, life insurance, motor cover, and so on. Both LIC and PoSP agent perform the same job. However, one may notice many major differences between the both.

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LIC Agents

LIC agents are people who work directly for the Life Insurance Corporation of India. They are trained and approved to sell LIC insurance plans. These agents bring the buyer and insurer together by selling plans. LIC agents go through big training to understand the different insurance plans offered by LIC. This allows them to guide buyers in choosing the best plan for their needs.

Key features of LIC Agents

Employment Status

LIC agents are workers of the Life Insurance Corporation of India.

Training and Certification

LIC agents go through high-quality training programs to gain the knowledge about the insurance plans and processes. They must pass exams to become licensed agents.

Plan Knowledge

LIC insurance agent have an in-depth knowledge of LIC’s whole range of insurance plans. They are well-prepared to provide complete information and guidance to possible customers.

Payment

The insurance agent earns money based on the plan they sell. Their income is directly tied to the insurance amount paid by the customers.

PoSP Agent

PoSP agents sell insurance policies to the buyers. They also work as mediators between the buyer and insurance company. They work with different insurance companies. This also includes LIC. PoSP is a law-based category introduced by the Insurance Regulatory and Development Authority of India (IRDAI) to increase the sales network of insurance plans.

Key features of PoSP Agent

Independence

PoSP agent operate freely and are not workers of any specific insurance office. They can sell plans from many insurers. This gives buyers a wider range of options.

Training and Certification

A PoSP agent goes through training programs to understand the plans of different insurance firms. They need to pass the connected or related exams to get the necessary certification.

Plan Knowledge

PoSP agents get knowledge about the insurance plans they are approved to sell. They may not have the same depth of knowledge about a single office’s plans as LIC agents. But they offer a wider way of seeing things in a sensible view of what is and is not important.

Payment

PoSP agents earn money from the insurance companies whose plans they sell. Their income is not tied to one office. This allows them to be freer in their work.

Differences between LIC Agents and POSP Agents

LIC Agents and POSP Agents are both involved in the insurance industry, but there are big differences between the two roles.

Licensing and Certification
  • LIC Agents: LIC agents need to go through a complete training program. They get a license from the Insurance Regulatory and Development Authority of India (IRDAI) to sell life insurance plans from the LIC.
  • PoSP Agents: PoSP agents who are approved to sell insurance plans. But their certification process may be less difficult than normal LIC agents.
Plan Offering
  • LIC Agents: LIC agents only sell life insurance plans given by LIC. This may include the gift of money plans, term plans, and other life insurance plans.
  • PoSP Agents: PoSP agent can sell many types of insurance plans from different insurance firms. This includes life, health, and general cover. They are not limited to one insurer.
  • Scope of Operations of an LIC agent
    • LIC Agents: A LIC agent can sell the cover of Life Insurance Corporation of India (LIC), He cannot work with other companies and sell their products.
    • PoSP Agents: PoSP agents have the flexibility to work with multiple insurance companies. This allows them to offer a wider range of insurance plans to buyers.
    Earning Structure
    • LIC Agents: LIC agents earn money based on the payments of the life insurance plan they sell. The earning structure may differ depending on the type of policy and other factors.
    • PoSP Agents: PoSP agents also earn money on insurance plans they sell. But the earning structure may change between different insurers and plans.
    Training and Support
    • LIC Agents: LIC provides detailed training and support to the agents. They prepare them with knowledge about LIC plans.
    • PoSP Agents: PoSP advisors may receive training from the insurance companies they represent. The level and type of training can change. They are not limited to one insurer.
    Target Market
    • LIC Agents: LIC agents usually target people looking for life insurance coverage and long-term investment options.
    • PoSP Agents: PoSP advisors target people looking for different types of covers. This includes people looking for life insurance, health insurance, and general insurance plans.

    Conclusion

    Both LIC agents and PoSP advisor play very important roles in the sales of cover plans. LIC agents focus on selling plans for one company. They get in-depth knowledge about those plans. POSP agents operate freely and offer a wider range of plans from different insurers. They give buyers more choices.

    FAQs

    1. Are LIC agents and PoSPs the same?

    No, they are not the same. LIC agents represent LIC and sell their plans. PoSPs can sell insurance plans from multiple companies, including LIC.

    2. Can a PoSP sell LIC plans?

    Yes, a PoSP is authorized to sell LIC plans along with plans for other insurance companies. PoSPs have the flexibility to offer a range of insurance plans to buyers.

    3. How is the licensing process different for LIC agents and PoSPs?

    The licensing process for LIC agents involves a more comprehensive training program and examination conducted by LIC. Becoming a PoSP involves a simpler and more streamlined licensing process.

    4. Can LIC agents switch to becoming PoSPs or vice versa?

    In many cases, individuals can change from being LIC agents to becoming PoSP insurance agent or vice versa. However, this change may involve meeting certain eligibility criteria and undergoing the necessary licensing plan.

    5. Is there a difference in the range of plans offered by LIC agents and PoSPs?

    LIC agents sell LIC plans. PoSPs can offer a wider range of insurance plans for different insurers, including LIC.

    6. Can an LIC agent work as an PoSP agent?

    Yes, an LIC agent may also work as an PoSP agent.

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