Role and Responsibilities of LIC Agent

Insurance is a very vast concept. An individual needs to understand it completely in order to sell it in the market. One needs to understand the benefits it offers to the buyer.

Insurance products are not sold in shops or stores. This is where the advisor’s role comes into play. The insurance advisor or PoSP agent explains the complex terms in detail to the buyer. They help clients buy suitable products. They have a key role in the distribution of policies.

Quick Link: Become an Insurance Agent

LIC Agents

Insurance advisors or LIC agents are mediators between insurance companies and consumers. They bring them together by selling insurance products. An insurance advisor represents a particular insurance company or many insurance companies. This is done by selling the products offered by the insurer. In return, they receive a reward for every policy they sell.

Role of LIC Agents

The LIC agents or a PoSP act as an intermediary between the consumer and the insurer. The primary role of LIC agent is to generate insurance business for the insurance company they work for. They also represent their buyers to the insurance company. Therefore, they have a role to play towards both the buyer and the insurer. So, they can divide their role into two classes.

Role of LIC Agents or PoSP Advisors Towards the Insurance Company

Here are the roles of LIC agents play for the insurance company they represent.

Generation of Maximum Business

The first role of LIC agent is to create new businesses for the insurance company they represent. A PoSP agent may achieve this by selling maximum insurance products to the buyers. Therefore, the PoSP agent should approach more people. They must explain to them the benefits of the insurance product offered by the insurer. In addition, they should make them realise the need for financial help during a crisis. The insurance companies offer modules during the PoSP training. They must use such experiences in selling insurance products. The insurance companies offer a reward for every product they sell. So, they must try to sell as much product as they can.

Persistent

Just selling the insurance policies may not help the insurance companies enough. The PoSP or LIC agent must ensure that their buyers like their services. They should try to retain the customer for the long term. Consistency has an important role to play in making profits. It shows that the consumers wish to continue with the same product for a long time. Persistency is also important for products like life insurance and other long-term plans. Under such plans, the consumer continues paying premiums for a long period. Therefore, the LIC agent must try to convince their existing client to continue with the insurance coverage and its renewals.

Promote Insurance Company

The insurance company offers a commission on every product it sells. Therefore, they must promote the insurance companies they represent. The customer will only buy the product if they trust the insurance company. So, the LIC agents must build a positive image of the insurance company. They must put forward the benefits of every product they deal with. This improves the brand image of the insurance company. It also improves the goodwill of the LIC agents.

Function of an Insurance Agent

Insurance is a long-term product. The clients pay a premium for a long time. The insurance product helps the consumer avoid financial emergencies. While getting the policy, the consumers trust the LIC agent. Hence, the agents have some roles and responsibilities towards their clients. Here are the function of LIC agent that will help you to win the trust of the client:

Facts Finding

The insurance advisor needs to find the client. He should understand the needs of the client. Based on the requirement, he should offer the products to the client. The LIC agent can offer a suitable product once they understand the needs and requirements of the clients. The PoSP agent can position the right products according to preference. So, fact-finding is the primary role that a PoSP agent should play in processing the sale of insurance.

Identifying Goal

The insurance advisor may proceed with the sale of insurance once they know the financial details of the client. Finding financial goals is the next role of an insurance advisor. The insurance companies offer goal-oriented products. Such products are based on the financial goal of the client. Therefore, the PoSP insurance agent must understand the financial goal of the client. For example, if a consumer wants financial security, the consumer should consider a term insurance plan. If a consumer wishes to have health security, the PoSP insurance agent should offer the health insurance product. The insurance company also offers child life insurance products if the consumer wants to fulfill the child’s needs. So, the PoSP insurance agent cannot sell the right product unless or until he understands the financial goal of the client.

Fulfilling the Financial Goal

Once the PoS agent understands the goal of the client, he should offer suitable insurance products. The client can attain the benefits from the product if it matches his goal and requirements.

Objections

The client may have many objections during product selection. The PoS agent should handle the objection and guide the client.

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Maintain Contact

The PoS agent must maintain a contract with the client. This is done to retain the client and handle their queries.

Help in Claim Clearance

The PoSP must help the client during the claim clearance. He must guide him in filing the form. In addition, he must explain to him the technicalities and the claim process.

Also Read: Corporate Insurance Agent Registration Process

Rewards of Becoming an LIC Agent

Embarking on a career as a Life Insurance Corporation (LIC) agent offers a unique blend of financial independence and the deeply rewarding opportunity to secure the future of families. This profession empowers individuals to build a self-sustaining business model with unlimited earning potential while maintaining complete control over their daily schedules.

Uncapped Earning Potential

Your financial success in this role is directly proportional to your dedication and networking efforts, as the commission-based structure ensures there is no artificial ceiling on your income. Over time, the accumulation of renewal commissions makes the LIC agent commision a steady, passive revenue stream that continues to reward your initial efforts for years to come.

Flexible Working Hours

Unlike traditional corporate positions that demand a rigid schedule, this profession grants you the complete autonomy to design your own working hours. This inherent flexibility allows you to seamlessly balance your professional commitments with your personal life, making it an ideal choice for self-motivated individuals.

Comprehensive Training and Support

The corporation provides extensive educational resources and mentorship programs to ensure that you are fully equipped to understand the market and advise clients effectively. You will receive continuous guidance on product portfolios and digital tools, which helps build your confidence and professionalism right from the start.

Respect and Social Prestige

Serving as a financial advisor allows you to perform a meaningful role in society by helping families protect their assets and plan for critical life milestones. This contribution establishes you as a trustworthy pillar in your community, earning you immense respect as you guide people toward long-term financial security.

Lifetime Career Security

The demand for reliable life insurance and retirement planning remains consistently high across all economic cycles, ensuring that your skills will always be relevant. Aligning yourself with a trusted brand provides an enduring foundation for a stable, lifelong career that is completely immune to typical corporate downsizing.

Earning Potential of an LIC Insurance Agent

One of the biggest prospects of becoming an LIC agent is the earning potential. While the agent does not earn any fixed income, they  make money through commissions. The commissions are calculated based on the policy amount and paid regularly. Here is a LIC agent commision chart for reference:

Endowment Plans

Money Back Plans

Child Plans

Term Plans

Health Plans

Pension Plans

ULIP Plans

Single Premium Plans

Whole Life Plans

Limited Premium Payment Plans

Micro Insurance Plans

Endowment for Female

Endowment for Male

Money Back with Guaranteed Additions

Note: The commissions here are indicative, and the actual rates can be different from the shown percentages.

Also Read: POSP vs LIC Agent 

Conclusion

An individual has the same role to play whether he is a LIC agent or a PoS agent. He advises the client and sells the insurance product to the insurer. Nowadays, people prefer to become a PoS agent to sell multiple kinds of insurance products. However, the roles and responsibilities of LIC agent are the same as those of traditional agents.