Life Insurance Corporation of India (LIC) has been a trusted name in the insurance sector for years. It offers financial security and peace of mind to millions of customers and families.
Behind the scenes, LIC agents play a crucial role in connecting the company with its customers.
What Does LIC Agents Do?
An LIC agent brings the insurance company and customer together by selling the insurance product. The agents sell the life insurance product of LIC of India. They receive a commission on the insurance policy they sell to the buyer. They offer different kinds of services to the buyers.
Services Offered by the LIC Agents
People many a time wonder how to become an LIC agent. One may become an agent by clearing the LIC exam. After this, he may offer the services to the client. Here are the services that an LIC agent provides to the customer.
- Understand Client’s Needs - The LIC agent understands the financial needs of the clients. They take time to discuss the policies with the buyers. They discuss the goals, financial situation, and future plans. This helps find insurance solutions that align with the client’s needs. This ensures that the buyers get the most suitable plan.
- Educating Clients About Insurance - Insurance can be a hard topic for many consumers to understand. LIC agents simplify the details of policies. They explain the terms and conditions in a language that the buyer can understand easily. The agents make sure that the client is well-informed about the various types of policies available. This includes the coverage they offer and how such coverage can benefit the client in the different phases of their life.
- Policy Advice - LIC agents guide clients in selecting the right policy. They consider different factors to advise a policy that provides the best coverage. This includes age, income, family size, and financial goals. LIC agents help clients make informed decisions.
- Assistance in Documentation - Dealing with insurance paperwork can be a difficult task. LIC agents simplify the documentation process by helping clients fill out the necessary forms and gather the required documents. This ensures that all paperwork is in order. This reduces the likelihood of any delays in processing their insurance application.
- Premium Payment Assistance - Once clients have chosen a policy, LIC agents guide them through the premium payment process. They explain the different payment options available. This includes online payments, auto-debit facilities, and other suitable methods. This ensures the client can fulfill their premium obligations. This helps avoid any lapses in their coverage.
- Policy Servicing - The work of an LIC agent does not finish after the client buys a policy. They continue to serve all over the policy term. The LIC agents help in navigating many processes. They help them in updating their personal information. They also help them in electing their nominees and making any changes if needed. This ensures that the client’s policy remains up-to-date and united with the growing needs.
- Claims Support - LIC agents act as client’s advocates during the claim process. They guide their nominee or beneficiaries through the claim payment process. This ensures a smooth and hassle-free experience through a tough time. Their skill helps advance the claim settlement. This provides financial support when it is needed the most.
- Regular Policy Reviews - Financial status changes over time. With this client’s insurance needs also change. LIC agents do regular reviews to assess whether their activity is still poorer. If needed, they advise adjustments to the policy to ensure that it continues to meet the growing needs.
- Financial Planning - The LIC agents often give financial planning advice to the client. They help create a full financial plan. This includes investment strategies, retirement planning, and other aspects of financial well-being. This ensures that the client is on the right path to achieving their long-term financial goals.
- Customer Support and Relationship Building - LIC agents are not just transactional service providers. They are also a relationship builder They offer ongoing support, answer queries, and ensure that clients feel confident and secure in their financial decisions. Building a strong customer-agent relationship promotes trust. This makes it more likely that clients will turn to them for future insurance needs.
Can an LIC Agent Work as an Insurance PoSP?
IRDAI (Insurance Regulatory and Development Authority of India) introduced PoSP in 2015. The PoSP (Point of Selling Person) is an individual who sells the insurance product of many insurance companies. An LIC agent may sell the insurance product of only one company. However, the PoSP agent may deal with multiple companies.
An LIC agent may also work as an insurance PoSP. He may fulfill the following criteria to work as a PoSP agent.
- Training Sessions: An LIC agent needs to attend the training session to become a PoSP insurance agent.
- Exam: An LIC agent also needs to appear in the PoSP exam conducted by the insurance company.
- License: Once the LIC agent receives the license, he may work as a PoSP agent and sell insurance policies for many companies including LIC.
Which is Better: PoSP Agent or LIC Agent
The work of the PoSP insurance agent is better than the LIC agent. An LIC agent may sell insurance policies of only one company. However, a PoSP insurance agent may work with multiple companies and sell their policies. This helps the PoSP agents to increase their income. The LIC agent cannot work for another insurance company unless he receives the PoSP license. Hence, the LIC agent has a low-income scope as compared to the PoSP agent.
Conclusion
An LIC agent offers different kinds of services to the buyers. He educates buyers about the insurance policy and its benefits. He also helps him during the claim process and financial planning. He reviews the insurance policies from time to time and advises the buyer in making any changes to the policy. The LIC agents play an important role in selling insurance policies to several buyers. People nowadays prefer to become PoSP agents. Many LIC insurance agents also work as insurance PoSP to increase their income possibilities. They sell different insurance policies of many companies including LIC.
FAQs
Q. What kinds of services does an LIC agent provide?
A. An LIC agent provides different kinds of services. He helps the client understand the cover. He also helps the buyer during the claim process. He advises the client at the time of buying the policy.
Q. How to become a PoSP insurance agent?
A. A person may become a PoSP insurance agent by attending the training session. The company provides training sessions to the people. A person also needs to clear the PoSP exam. The person may receive the PoSP license once he clears the exam.
Q. Can an LIC agent sell the insurance product of another insurance company?
A. No, an LIC agent cannot sell the policy of another company. However, he may work for another company if he has a PoSP license.
Q. Who can become a PoSP insurance agent?
A. An 18-year-old person who is tenth passed may become a PoSP agent.
Q. What is PoSP full form in insurance?
A. PoSP full form in insurance is Point of Sale Person.
Q. How do insurance companies conduct the PoSP exam?
A. The insurance companies conduct the PoSP exam online.
Q. What are the benefits of becoming a PoS advisor?
A. Here are the benefits of becoming a PoS advisor.
- Work from home: A PoS advisor can work from his home.
- Income: A PoS advisor may increase his income by selling more policies.
- Flexibility: A PoS advisor may work anytime he wants.
Q. Who can become a PoSP insurance agent?
A. The following may become a PoSP.
- Businessmen
- College student
- Retired persons
- Homemakers
- Salaried persons
Q. What is an IRDAI exam hall ticket?
A. An IRDAI exam hall ticket is the card that an examiner may receive to appear in the insurance exam.
Q. Is it mandatory to attend the training session to become a PoSP?
A. Yes, it is mandatory to attend the training session. It is also important to clear the exam to become a PoSP.
