Complete guide on how to become a good insurance agent
In how much time can an insurance agent be made? Some people can form within weeks. If you want to take an online course that requires a certain number of study hours, then your ability to complete it largely determines your licensing time. After the exam and background check, it may take you a week or two to get the license. A lucrative opportunity in the insurance industry.
The requirements to become an insurance agent may vary at the state level, but one can complete this process faster than other business. Below is the step-by-step on how to become an insurance agent.
What does an insurance agent do?
An insurance agent is a seller who sells insurance policies. An insurance agent is responsible for developing strategies to promote different types of insurance. Insurance agent makes a complete assessment of the needs of any person or his business and to propose insurance plans that meet the criteria of the client. Moreover, insurance agents also diversify their income to offer financial planning services to clients. Some insurance agents specialize in fixed insurance such as health, property, disability, and long-term care.
There are two types of insurance agents:
Captive Insurance Agent
This insurance agent only works with the company. Usually, as a major national insurance provider, the company provides training and assistance to insurance agents. The agent has to represent the company’s products. The captive agents have to sign a non-compete agreement that confines them to the insurance company for a particular period.
Independent Insurance Agent
The independent insurance agent can work with more than one company. He offers policies of many companies to find the best policies and prices. Independent agents have flexibility in product offerings but receive less testing and support from insurance carriers.
Eligibility Criteria for Insurance Agent
It is necessary to know the eligibility criteria of the insurance agent, which is as follows.
- Age must be 18 or above.
- 12th pass.
- Apart from this, one needs to pass the exam from IRDA ( Insurance regulatory and development authority).
Every state requires a license for selling business insurance. The insurance agent needs a split license for health insurance, accident and property insurance.
Essential Documents required to be an insurance agent –
To become an insurance agent, one has to address any insurance company and then apply with financing documents. below is the list of documents required –
- Aadhar card.
- Address proof
- Pan card
- 4 copies of the photo.
- Highest Education Certificate.
With these documents, you can apply and learn about online training. Once certified to grow as an insurance agent, you will get admission to become an agent, and the process takes around 60 days.
How to become an insurance agent?
If you want to become an insurance agent, you need to register online through the IRDA ( Insurance regulatory and development authority in India) portal. Registration involves filling some forms and uploading some and then paying online. After this, you know the date and time of the exam. The IRDA website also provides study material which helps applicants to understand what is involved. Study material on this website available is in various languages as well.
Choose which insurance product you want to sell?
Insurance products include many types of commercial insurance and personal insurance policies. Individual lines of insurance are focused on coverage for individuals and families. This incorporates insurance for home insurance, motor vehicles, and life insurance. Commercial insurance agents provide coverage to businesses with policies ranging from general liability insurance to property insurance and other default coverage.
Reviewing state license requirements
Before getting a license, you need to know which products are hot selling so that you can choose the appropriate license for yourself. Licenses also vary depending on different states. The two types of insurance licenses are as follows:-
Property and casualty license:
In this, plans are made to serve customers in need of an auto, home and business insurance.
Life, Health, and Accident License:
In this, insurance related to events like life insurance, accident, and health insurance are planned.
Why does an insurance agent need a license?
A license is mandatory to discuss insurance products and full sales. Each state has specific license requirements. Working without a license will lead to legal action.
Taking an insurance license exam
Most states require you to complete the pre-licensing class that can be taken online or offline. Requirements are based on the state, and online training in a one-day class varies up to 20-40 hours. After meeting the pre-exam requirements for the state, you have to co-ordinate your official licensing exam centre. The outside company advances this test. To take the test online, one has to visit a test site on the scheduled date and time. The proof of the entire training class has to be shown before taking the exam.
License application and background check
Once you pass the state insurance license exam, you have to submit all the necessary license applications to the licensing department of your state. Some states require background checks that may include fingerprints. When you are officially licensed, you can also discuss the policies legally and sell them.
Appointment in selling products with the company
To have the right to sell products, you must be appointed by an insurance company. You need to complete an application with the insurance company in which you plan to sell the products. You are provided with an appointment and binding authority whose state insurance license is registered.
If you get personal satisfaction in protecting the public good and safety, then you can choose the career of an insurance agent. Choosing the ability to choose your work environment and high earning potential with easy entry into your field provides you with many benefits of a career as an insurance agent. Recruitment plans for all insurance companies are strong. You can become an official insurance advisor as well when you pass the exam.