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Life Insurance Agent – A Profitable Career Option

by Gabhale10

The life insurance market in India has huge untapped potential. So, if you choose to become a life insurance agent, you can build a profitable career successfully. There are a lot of perks and incentives in this profession that we will discuss in this article. The article will cover how a life insurance agent’s career is profitable and other benefits he can enjoy after becoming a life insurance agent.


Remuneration Financial Benefits 

The initial salary can seem to be lower for life insurance agents.  But this is a profession where the incentives count more than the fixed salary. On average, an intern or fresher who just joined the industry as a life insurance agent can expect around Rs. 2-3 lakhs package in a year excluding the incentives. However, if they perform well and get clients for the company, they get different incentives and bonuses. 

Remuneration or fixed salary in the life insurance or insurance industry, as a whole, is quite less compared to other financial services. The primary source through which an insurance agent earns is the insurance agent commission. The reason is that the job is target-oriented. So, the more clients you get, the more revenue you generate for your firm and the more you can earn. This is the business model followed in the insurance industry.


The Basic Structure in the Insurance Industry

This is the basic structure of the industry where the life insurance agents are the ground workers. The insurance agents acquire the clients, sell them the life insurance products and generate revenue. The manager is the one who supervises these insurance agents. A single manager can handle multiple insurance agents as per the company’s policies and earn a part of their commission. 

So, as a life insurance agent, you can earn a commission for your sale. Suppose you acquired 15 clients in a month, and your target was 10; you will get the fixed salary. Then you may get incentives for all 15 clients or the 5 extra clients that you got above your target as a bonus. So, your total earnings will be the summation of the salary received and the incentives or bonus. 

Each insurer has different incentives and remuneration policies for the insurance agents. You need to check how the insurer distributes incentives before joining the company.


Managerial Position and Earnings

While talking about an insurance agent’s profitable career, you need to also see how you can grow. You can get promoted as the manager of a team of insurance agents after a few years according to your performance. 

If you become a manager, then you can earn a salary that will be fixed plus a commission on each client that the insurance agents under you acquire plus any clients that you acquire. 

Moreover, this is an ongoing process for insurance agents and managers. As the client renews their policies every year/pays premium, insurance agents and managers get the commission they are supposed to get. However, as mentioned, it can vary as per the insurance company as well.


Other Perks and Benefits

The career of a life insurance agent can be termed as really profitable because of the following aspects as well –

No investment required

When you start as a life insurance agent, you do not need to invest any amount initially. Even if you join as an agent and not as an employee you can start right away. All you need is to have a good network and PR skills. Thus, the revenue you generate is your profit as there is no investment. 

Free travel and holiday packages

Often life insurance agents get incentives or bonuses in the form of travel packages. You can take your loved ones with you even at the expense of the company. 

Rewards and recognition

The financial benefits count but rewards and recognition count more. In this industry, there are multiple forums and platforms where best-performing insurance agents are awarded and rewarded as well. These platforms not only help in getting exposure to the market experts but also gain immense knowledge. 

While you can become a life insurance agent and start earning from a very young age, the earnings may be on the lower side in the beginning. However, with experience and skill sets, you can grow immensely in this industry and make a profitable career out of it.

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