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Life Insurance is insurance for you and your family's peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its function is to help beneficiaries financially after the owner of the policy dies. It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Additionally, a little known function of life insuranceis that it can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company. These are considered private pension arrangements. Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or "carrier" that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax ² "cash benefits" ² to the person or persons you name as beneficiaries. In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a

contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in

the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated. In addition, you should also make a list of what you feel needs to be protected in your family’s way of life. With a life insurance policy in place, you can: • • • • provide security for your family protect your home mortgage take care of your estate planning needs look at other retirement savings/income vehicles

Did you know that a life insurance policy can? • • • Provide continuous flow of funds for the living spouse. Allocate income funds for the children's education. Provide a retirement income throughout old age.

• • Provide a reliable savings plan for the future. Supplement income when earning power is destroyed by illness of accidents, such medical expenses. as covering




INSURANCE is such a method which provides security and protection against financial loss up to some limit. It is a means of shifting the risks to insurer in consideration of a nominal cost called premium. a) “INSURANCE AGENT” means an insurance agent licensed under

section 42 who receives or agrees to receive payment by way of commission or other remuneration in consideration of his soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies. The insurance sector is of considerable importance to every developing economy; it inculcates the savings habit, which in turn generates long-term invest able funds for infrastructure building. The nature of insurance business ensures constant inflow of funds - the payout is staggered and contingency related – thereby making it readily available for investment on infrastructure building. An insurance policy protects the buyer at some cost against financial loss arising from a specified a risk. Different situation and different people require different mix of risk – cost combinations. Insurance company thereby offers schemes of different kinds which not only protect the person from any risk but also invest their money in the market, and thus

Distribution accounts for the largest element in insurers’ costs and impact the profitability. and 3. the penetration rates of health and other non-life insurances in India is also well below the international level. c) Distribution Channel in Life Insurance: Till date. trade or employment or of the dependents of such persons. The granting of disability and double or triple indemnity accident benefits. including any contract whereby the payment of money is assured on death (except. These Plans are called ULIP or United Liked Insurance Plans. Distribution capabilities of any 4 . if so provided in the contract of insurance.LIFE INSURANCE AGENTS ensure the return on their investment cum insurance plans. b) Life Insurance Business: “ Life Insurance Business” means the business of effecting contracts of insurance upon human life. To tap the rest of the 80% of the insurable population in India. the insurance organization needs a huge and varied Distribution channel to sell the varied plans to the people. only 20% of the total insurable population of India is covered under various life insurance schemes. The granting of superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession. The granting of annuities upon human life. For selling and convincing their various plans to their customers the insurance firms make use of varied distribution channel. death by accident only) or the happening of any contingency dependent on human life and any contract which is subject to payment of premiums for a term dependent on human life and shall be deemed to include1. 2.

Now the policies are the combinations of the Life Insurance and the Investment and there by these are known as Unit Linked Insurance Plans or in short ULIPS. Earlier the agents were the only and the primary interface of insuring lives of the people and these agents were the sole distribution channel of the Life Insurance Organization. who had always seen life insurance as a tax saving device. Distribution channel strength have a direct impact on the organization’s image . smart marketing. Now the agents are not only the Life Insurance agents. With the help of these alternative channels these private firms has penetrated the market to the great extent. they are the professional advisor also. are now suddenly turning to the private sector and snapping up the new innovative products on offer. Indians.LIFE INSURANCE AGENTS firm effect the product design in insurance due to the huge feedback from the customer. and aggressive distribution have enabled fledgling private 5 . For selling and providing highly technical knowledge about the product the insurance industry has to make use of its highly dedicated and knowledgeable distribution channel. Innovative products. brought the alternative channel of distribution. But with the liberalizing Indian community and the advent of the foreign companies in India. Now the insurance policies are not only the life saving and tax saving device but it has more to offer to the customer in the form of Investment in the market. Now they are called the Financial Advisors who advice their customers to invest their money in the appropriate policy which suits the needs of their customers. Highly professional and integrated distribution channel of any firm increases the credibility and reliability of the product of the firm in the market.

04 % in 2006-2007. Which are? 1. Due to its varied distribution channel the private insurance player in 2007-2008 these organization’s has taken over the 25 %( approx) of the market share in India and the LIC had came down to 75% from its market share of 87. Banc assurance Out of these distribution channel the private insurer have capture most of the market with its Tied channel. Table 1: Number of Licenses granted to the advisors: 20072008 ALLIANZ BAJAJ. There are three main channel of distribution. in Jalandhar only. Tied Channel (Financial Advisors and Sales Managers) 2. This is also can be proved from the figures of the number of advisors employed till date in Jalandhar has gone up to 14500 plus. The numbers of Financial Advisors recruited by these Private life insurers in different year are given in the following table.LIFE INSURANCE AGENTS insurance companies to sign up Indian customers faster than anyone expected. & 3. Corporate Agents . who on an average of 12 policies a year sells more than 174000 policies in a one year. TATA AIG LIFE AMP Life BIRLA SUN LIFE AVIVA LIFE HDFC life SANMAR 14293 11913 9204 16717 5013 5475 3819 10356 6424 13207 5044 19209 1608 6314 1870 11312 3214 6 20062007 32680 17779 20052006 36742 33076 20042005 14202 15559 20032004 4347 7038 80217 19348 484 2009 .

7 . Bajaj Allianz have 22. The market share in the private retail market in life insurance in India as on April 2007 is shown in the following pie chart.0%.1 Source: individual IRDA. Weighted new business premiums for business.8 % .914 10861 1135 442680 2620 417 62758037 479186 10308 3196 5770 1463 Due to their huge work force of Financial Advisors the ICICI PRU have claimed 27.LIFE INSURANCE AGENTS ICICI PRU ING VYSYA LIC MAX NEW YORK METLIFE INDIA KOTAK MAHINDRA SBI LIFE SAHARA LIFE SHRIRAM LIFE INDIA 81 5937 0 0 0 0 6295491 Sub Total 721696 482068 0 571160 476872 0 0 0 0 7374 5112 2976 2175 6736 4281 3785 2224 1348 719 44489 14043 472076 12549 8343 29930 7720 353773 6998 3374 46818 11832 23953 3. SBI have 8. The market share private insurance organization as on April 2008 was: Fig 1. HDFC life have claimed over 8.0% of the retail insurance in India .7% .

It indicates achievement and brings deserved recognition for the individual. MDRT is the esteemed pool of advisors who had achieved the yearly goal of collecting the premium of about 27. For many. MDRT membership is a coveted career milestone. 2) About COT: 8 . motivation and professionalism.400 in Indian Rupees OR earned the commission of about 6. The amount may vary from country to country in their respective currency. MDRT opens the door to a new world of knowledge. 14. abbreviated MDRT is a trade association formed in 1927 to help insurance salespeople and financial advisors improve their business practices and increase sales.000 at the end of each financial year.LIFE INSURANCE AGENTS d) International Recognition of Agents: 1) About MDRT: The Million Dollar Round Table.78.

200 in Indian Rupees OR have to earn the commission of Rs 20. This amount can be different from country to country in their respective currency. These agents are the actual super achievers in the field of the insurance. 3) About TOT: Top of the Table is last and the highest that any advisor can go. more than 3. MDRT commission requirement of INDIA and some of the neighboring countries are given in the table below. Conversion factors have no relationship to currency exchange rates and are used only to standardize MDRT processing.800 at the end of financial year. Each year.86. Achieving membership in MDRT’s Court of the Table is a career milestone attained only by those who have demonstrated exceptional professional knowledge. 9 .600 which is almost six times of what the MDRT collect or earn. The amount given within the table Is in the currency of the respective country.LIFE INSURANCE AGENTS Court of the Table members distinguishes themselves within the industry through their superior performance by producing at a level three times that of MDRT membership requirements.71. client service and ethical conduct.35. For becoming the esteemed member of this club the agent have to collect the premium of 81.43. An agent qualify for the TOT when he/she collect the premium of about Rs 162.500 MDRT members qualify for the Court of the Table.400 OR have earned the commission of Rs 40. This amount can differ from county to country in their respective currency.

800 448.600 896.800 of the Commission Conversion 8.600 COUNTRY India China Pakistan Bangladesh Commission 678.459.600 993.8264 11.600 4.600 18.740.035.2958 1.486.919.100 2.300 5.LIFE INSURANCE AGENTS TABLE 2: 2008 MDRT COMMISSION REQUIREMENTS: MDRT Qualifying Membership Court of the Top Table Commission 2.1687 Table Commission 4.000 9.958.400 5.332.1405 Sri Lanka 1.600 12.200 2.600 149.500 4.071.1735 Nepal 777.481.979.665.400 913.800 8.5048 10 .500 2.

600 2.786.LIFE INSURANCE AGENTS Following are monthly goals in Indian rupees to keep you on track for the 2008 Million Dollar Round Table.100 9.357.650 678.017.800 678.60 0 April 226.357.0 4.750.40 0 March 169.2 00 678.850 1.2 00 0 8.200 COT on 169.400 339. COT and TOT Month MDRT commissi on MDRT premiu m 226.600 2.228.200 5.300 1.300 TOT m 1.550 February 113.00 May June 282.500.375.017.600 TOT on 339.714.071.071.20 0 commissi premiu commissi premiu January 56.550 4.650 COT m 678.900 3.100 452.600 508.4 00 1.187.393.950 2.750 339.40 0 11 .2 00 848.035.200 904. TABLE 3: Month wise Commission for MDRT.6 00 1.300 1.4 00 1. Court of the Table and Top of the Table.20 0 July 395.250 1.500 2.357.8 00 1.80 0 6.357.0 1.714.696.900 4.143.

809.6 00 8.0 00 Novemb er Decemb er 678.053.050 2.035.600 3.200 5.4 00 2.2 00 2.393.929.428.400 10.800 1.714.732.464.4 00 e) Training & Examination of the Financial Advisor’s: 12 .700 2.071.696.857.357.500 1.6 00 12.4 00 6.8 00 13.143.0 00 7.035.786.286.2 00 16.714.8 00 2.0 00 14.214.LIFE INSURANCE AGENTS August 452.600 622.866.526.6 00 Septem ber October 565.400 1.262.2 00 4.488.150 1.572.950 2.8 00 6.300 3.850 1.107.500 508.000 3.

METLIFE. The in house training about the product is also provided to these agents in the various agencies of these Insurance organizations. managing long-term relationships and selling skills. outsource the training to the institutes recognized by the IRDA and affiliated to the Insurance Institutes of India (I. but the private insurance organization like ICICI. Apart from this recommended training of 100 hrs the Financial Advisors are also given the product training to the FA’S by these insurance organizations at their own agencies.LIFE INSURANCE AGENTS According to the rule and regulation given by IRDA an FA has to go through the theoretical training for about minimum of 100 hrs to be completed in all most time period of 18 to 19 days. f) Eligibility for Examination: Any Financial Advisor can be a part timer or a full timer agent. MAX NEWYORK etc. For Example the LIC. Minimum qualification set by IRDA for being an FA in Urban and Semi Urban area must be that he/she must be of minimum 18 year of age and must possess the minimum qualification of Plus Two standard. which are very relevant in a service-driven industry like life insurance. Federal institutes. And for the person belonging to 13 .I). V2A institute. During the training they are provide about the knowledge about the market and the basics of the insurance . This licensing examination is called ‘Pre-Recruitment Examination for Life Insurance Agents’. At Jalandhar the training is outsourced to the Dream Weaver institute.I. Just before the two days before the examination the probable are given the revision session through the crash course of Two days. BIRLA SUNLIFE.There is a further focus on soft skills such as communication. KOTAK MAHINDRA etc goes for in house training and recruit almost 750 FA’s in a year. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. The Insurance Organization at Jalandhar goes for In-house training or Outsource their training.

For instant. At these insurance organizations the Financial Advisors are motivated by various remuneration and paid bonuses for earning the specific premium for the organization. So it is needed to motivate them so which can help them in keep in working for the common cause of the company. g) Motivational Factors for a Life Insurance Agent: Life Insurance agents have to work without assistant and have to set targets and time for their own work. Financial Advisors are constantly recognized and rewarded for their performance. 14 .LIFE INSURANCE AGENTS the rural area he/she must have attain the minimum age of 18 year plus he/ she must have the minimum qualification of 10 th standard. But most of the private Insurance Organization has their own preference of appointing FA’s. METLIFE prefer the person who is married and of age 25 and above. All the life insurance companies at Jalandhar have their own method of motivating their Agents and during the whole process they help in building the career for the Agents. because the person at this age is more responsible to his profession.

LIFE INSURANCE AGENTS LIFE INSURANCE AGENTS When you are purchasing a life insurance policy. Additionally. so that you do not have to try and understand all of the difficult differences in various forms of policy options. they are going to guide you through the process. and rates. the assistance of a Life Insurance Agent is something that you will find to be invaluable. quotes. depending on the amount of coverage you want to buy. with the help of the right trained professionals. 15 . you are going to be able to compare the policies. Due to the fact that there are hundreds of insurance companies. and the insurance provider of choice when you are ready to buy the policy options. and levels of coverage to choose from. policies. for the different policies and insurance providers.

an agent is truly going to assist you through the process. and any other types of policies. (Becoming An Insurance Agent ) With so many choice policies.LIFE INSURANCE AGENTS WHY USE LIFE INSURANCE AGENTS? Although you do not have to turn to a Life Insurance Agent when you are choosing a policy. guide you in choosing the right terms. . when you are choosing the coverage you need. you will learn that it makes things much easier on you. and help you in deciding what is necessary and what is superfluous. and how much you really need. meaning they are going to be able to assist you in finding a policy. umbrella. Some of the benefits an agent is going to pose includes: . meaning they will describe things you need to know when you are buying insurance. when you are choosing a life insurance policy to leave behind to your loved ones.they have connections with many insurance providers. and. and possibly negotiating a lower price on the policy for you with certain insurance companies. to ensure you know what each entails. how much each coverage offers. the insurer of choice. one.your Life Insurance Agent can guide you in the differences between whole. . term. and the terms on the policy that are the most important to you when shopping for a policy. 16 .they are knowledgeable on all types of policy options and insurance providers.

LIFE INSURANCE AGENTS TYPES OF AGENTS EARLY 1800-2000 Before nationalization. the agents who sell individual policies may also sell Group Insurance policies. urban 17 . semi-urban. who can typically be grouped as retailers and wholesalers • • General Category Agents (or 'agents') Banc assurance or corporate agents Here again. 'Chief Agents' and so on. there were 'Agents'. Collection of premium. the LIC was appointing the following types of agents: • • • General Agents (or "Agents" . wherein their role is that of a wholesaler.stipend for the first 3 yrs) Urban Career Agents (UCA's -stipend for the first 3 yrs) All agents can be considered as retailers for the insurance policies are sold to the consumer by the agents and they sell Group Insurance policies occasionally. there are only two types of agents recruited. After nationalization. They were more of an intermediary tool in premium collection rather than marketing stipend) Rural Career Agents (RCA's . Under the IRDA Regulations 2000. The LIC's penetration in the rural market was possible through distinct agents to cover different groups of customers like rural. remitting it to the LIC and issuing the premium receipt to the policy holders was considered as the main role of these agents. The chief agents seemed to be employing people who were later absorbed as employees of LIC of India. These agents continued to serve the LIC. 'Special Agents'.

the LIC of India is forced to standardize all its agency recruitment. 2. The Rural Career Agent (RCA): • • 1. Should have passed X STD. Therefore even the recruitment of UCA's (Urban Career Agents) for its Career Agents Branches has been stopped since 2005. there were specific eligibility norms laid out. From 1972. if from a town with less than 1 lakh population. Should hail form a rural area. the eligibility conditions vary according to the type of agents. if they reside in a town with over 1 lakh population or Should have passed VIII STD. 18 . 3. As per the LIC of India (Agents) Rules 1972. the Divisional Manager of LIC was empowered with the discretion to waive the educational qualification if he was convinced that the candidate has a flair for marketing.LIC of India (Agents) Rules 1972 There was no specific eligibility condition. Should have completed 21 yrs of age and not more than 35 yrs of age. Nor was there any conditions stipulating the minimum business performance. Agents Recruitment: Eligibility Conditions . However. The Agents: • Should have completed 18 yrs of age and no limit on the maximum age.educational or otherwise for agency recruitment.LIFE INSURANCE AGENTS etc. But after privatization of the insurance sector. Should have passed X STD.

If you have an arrangement with a broker. limited only by what the broker carries. on the phone. Should have completed 22 yrs of age and not more than 35 yrs of age.LIFE INSURANCE AGENTS The Urban Career Agent (UCA): 1. you experience success. He/she should be a graduate. then part of your marketing plan may already be developed for you. 2. The rejection can be intense. Should have passed XII STD. It takes a large number of approaches to book an appointment. door to door. If you persist at implementing your prospecting plan. It takes a good number of appointments to make a sale. You've got to keep trying. because cold calling is a numbers game. Self Confidence 19 . then the products you sell and who you approach are entirely up to you. 3. To get through this you've got to have persistence. if hailing from a city with more than 5 lakh population. It takes many sales to make a living. Ability to plan As a new agent you have to generate your own business. this means that you have to decide how you are going to make your cold calls-in person at work. You also need to set daily goals about how much prospecting you will do. If you are working for a particular company. and so on. QUALITIES OF LIFE INSURANCE AGENTS 1. if they reside in a city with less than 5 lakh population. In practice. 3. 2. Decide who you are going to contact. Persistence Cold calling can be a rude awakening.

You need to learn these concepts and then communicate the relevant ones to your prospects in such a way that they'll want to buy from you. so they believe in what they are selling. because they rely on insurance at the most difficult times in their life. People put their trust in you when they purchase your products. Good Communication Skills Insurance is a complex business. If you think life insurance is a simple product. 6. 4. and only with ongoing study will you be able to acquire the in-depth knowledge you need for a successful career. riders. Your self-confidence can be enhanced by regular exercise and the ability to stick to your prospecting plans through thick and thin. Similarly. It is easier to trust a confident person. Make use of books and training courses. Top-level insurance brokers must be on a mission to improve the lives of their current and prospective clients. Passionate Successful brokers are passionate about what they do. Communication skills can be greatly enhanced by taking time before meeting prospects to write out what you are going to say and rehearsing it. 5. with options. Whether this is attending seminars at work or self-study at home is entirely up to you. Their services can have a huge impact on the lives and legacies of their clients – and on the lives of clients’ families 20 . but it needs to be a regular part of your work week. you'll soon change your mind. There are different kinds of life insurance. study selling. They enjoy helping others prepare for the unexpected. and ratings that can be difficult to sift through. Commitment to Ongoing Learning Insurance products are complicated.LIFE INSURANCE AGENTS Insurance agents must exude self confidence--but definitely not arrogance. and it is easier to approach and talk with a confident person.

Successful brokers develop resilience and realize that this rejection is not personal. Able to handle rejection Insurance brokers must deal with a lot of rejection. These challenges can be physically and emotionally wearing unless brokers can set business targets 21 . Insurance brokers must be outgoing and able to make prospective clients comfortable during the sales process. A new broker’s ability to convey the crucial nature of this work will have a huge impact on his/her career. One interesting technique used by a former top agent to neutralize his fear of calling prospects was to put a dollar value on each call. This technique doubled his revenue within a year. he taped a $20 bill to the phone to signify the value of each call. Asking prospective clients to face their own mortality or morbidity is a challenge. The agent realized that if he was earning $3000 in commission a week and was making 150 calls each week. Outgoing and empathetic Introverts need not apply. Many prospective clients will procrastinate and try to postpone meetings. especially early in their careers. They must be comfortable starting conversations and have genuine interest in their clients’ peace of mind and financial well-being. and some may even be verbally abusive. each call was worth $20. but it is filled with many long days and challenges.LIFE INSURANCE AGENTS and loved ones. 7. To minimize his reluctance. Goal oriented The insurance industry can be monetarily and personally rewarding. 9. 8.

Organized Top-tier insurance brokers have tracking systems to analyze their production and administrative tasks. and longterm goals will keep energy levels high and help you deal with daily business challenges. Success in insurance requires persistence. 22 . mid-term. such as the birth of a child or the purchase of a new home. Systematically keeping in touch with clients lets brokers provide better service and uncover potential sales opportunities.LIFE INSURANCE AGENTS that keep them on track. The ability to set short-term. 10. They can effectively keep track of when to contact current and prospective clients.

LIFE INSURANCE AGENTS THE FUTURE OF LIFE INSURANCE IN INDIA The Indian life insurance industry has played a significant role in the development of the country's financial services sector. challenging and especially rewarding life markets. However. recent regulatory changes have pushed the industry into a state of flux that will inevitably cause disruption to the industry's development. Not only does the current flux offer an opportunity for new incumbents to reassess their strategy and realign their business models to best take advantage of industry changes. In the Oliver Wyman report titled Charting a New Course: The Future of Life Insurance in India. The management agenda described in this report offers insight to life insurers seeking to capture the tremendous opportunities in one of the world’s most exciting. 23 . we then examine management actions and strategies players can adopt to successfully capitalize on the opportunity provided by this phase of uncertainty. we identify the key trends that will dominate the industry's evolution in the near to mid-term. By identifying and analyzing the six key trends. it also offers new entry opportunity for next generation business models from domestic or international players.

LIFE INSURANCE AGENTS GUIDELINES OF HOW TO BECOME AN LIFE INSURANCE AGENT Eligibility: 12th standard pass Age 18 and above Process: Contact your nearest Branch Office and meet the Development Officer there. The Branch Manager (I/C) will conduct an interview. Can I Become An Agent? You certainly can if • • You are outgoing and like meeting people You are ambitious to own a business 24 . you will be sent to training at Divisional/Agency Training Centre. You will be appointed as an agent by the Branch Office and you will be a part of the team under your Development Officer. After successful completion of training you will have sit for Pre-Licensing examination conducted by the Insurance Regulatory and Development Authority (IRDA). The Development Officer will impart you field training and other valuable inputs which will help you in the market place. and if found suitable. After successful completion of the examination you will awarded a License by the IRDA to work as an insurance agent. The training is for 100 hours and covers all aspects of Life Insurance Business.

and are the continuing link with our clients. A clear career path. all round support through exclusive advertising. your own in-house consultant. we take a lot of care in recruiting and developing our agency force. we look for graduates who are service-oriented. and world-class training: • • • • A comprehensive benefit package Training Careers Rewards & Recognition They are a key source of business for the organization. To cater to the needs of the knowledge-oriented marketplace.LIFE INSURANCE AGENTS • • You only want your clients to be your bosses And you want to decide your working hours Unlimited earning potential. That is why. Prior sales experience is an added benefit. so that we continue to set higher standards of quality in service and salesmanship. 25 . good communicators and enjoy meeting new people.

unwanted messages. Not refunded payment. There was always a dilemma in the minds of agents about their id. A major part of population has responded by getting enrolled as LIC employees. after 26 . The commission was not provided to them due to some errors. Customers can also place their complaints on the same portal. Elimination of errors such as” missing documents. Issues like LIC not pensioned. id.. The portal has enhanced the approach and reduced the distance barrier. Links to support consumers has been attached to the portal. password etc. agent as irresponsible. Agents are starting to enjoy their job with an ease to support their consumers. how to get my prize.LIFE INSURANCE AGENTS LIC AGENT PORTAL Launch of a LIC agent portal has resolved many minor faults committed in the LIC procedure. Agents can spread the LIC phenomena across the country and handle their responsibilities in a professional way.” Now agents can eventually express their needs in an advanced manner. Pension not credited. An employee knows what it feels like when not been paid for its hard work. Agents discuss their problems with ease and uphold their requirements. The LIC agent network is maintained across various parts through a common destination. agent code. not reached. and some often complained about their commission. password and so on.

The information or the missing parts should reach them in a faster way. To keep the status of an enterprise their customers has to be satisfied. Service is just an entity. 27 . How easy it becomes to gather all information from a common point. Customer is the most valuable asset to an enterprise and no one risks its values. The launch of the portal many faults has been improved in terms customer handling. LIC agent portal is a source for all agents to a spontaneous flourish of the service. With an agenda to enroll maximum number of people onto LIC. all agents go through a similar process. Going through the portal anyone can understand what steps are being taken to ease of the pressure on agents. Agents with the help of the portal provide all the information to the unaware residents. Everybody remembers how difficult it is to place their complaints on the desks of the officers. Agents move towards a common destination for response. But now those complaints are responded in an advanced manner. amount debited twice for 1 premium. It is important for them to arrange everything in order. The deposition of mails speaks for itself. until it is provided in the right manner. The response to the complaints took months and sometimes years. The process is incomplete even if a small part of it is missing.LIFE INSURANCE AGENTS death money is not funded .LIC agent portal is the right way to spread the LIC service. LIC is a must now days and providing it as a service to everybody adds to its significance. Hence it is easy for them to move forward from the initial step to finalize the LIC. it is not hard to work as an agent. Fraudulent Agent and rebate.


Independence As an Agent. Rewarding Career You will help people realize their dreams by fulfilling their financial goals. Attractive Remuneration We offer one of the best remuneration systems in the industry that not only takes care of your current earnings. All of this. choose your own clients and make your own money. 3. you can set your own income targets with a potential to earn as much as you want for the rest of your life. What's more. without your having to make any initial capital investment 5. Last year. you will be a part of the country's finest team of life insurance Agents. Even if you don't have 29 . World-Class Training We provide you with the best-in-class training systems. A Successful Team By joining us.LIFE INSURANCE AGENTS THE BENEFITS OF BECOMING AN LIC AGENT 1. 4. you will be a true entrepreneur. The difference you make to their lives is more rewarding and satisfying than you could ever imagine. we contributed 1317 members to the Million Dollar Round Table: a global forum that salutes the world's most successful Insurance Agents. You have the freedom to be your own boss: work for yourself. but also guarantees earnings for the future. 2. since that is what differentiates LIC Agent from the rest.

8. Full Range Of Products And Services You can offer your customers over 50 product combinations of our unique Products and Riders. 7. We believe in encouraging our Agents to strive towards the highest levels of success. depending on your performance. The Sales. our multi-dimensional training programme conducted by our qualified in-house training personnel. In fact. 10. 6. Promotions and Marketing collaterals that we provide will help you take your business to new heights. Sales And Marketing Support We support our Agents with innovative sales and marketing tools. we also offer a management career option with the company. Financial Strength LIC offers you and your customer unmatched financial strength and solidity. we support you and your efforts not just today. You will have access to the necessary tools. we are also continuously working on newer and more innovative products. 9. technology and people support that will enable you to build a profitable long-term business.LIFE INSURANCE AGENTS previous experience in selling. Infrastructure Support We have invested in creating a state-of-the-art infrastructure at each of our Branch Offices. but at every stage of your business. In order to give you a greater competitive edge. 30 . will make you a specialist in life insurance sales. Commitment To Career Agency System Our commitment to the Career Agency System means that. to help them meet all their financial goals. throughout their careers.


some are also offering their clients financial analysis or advice on ways the clients can minimize risk. health. storms. and property. Life insurance agents also sell annuities that promise a retirement income. Increasingly. commonly referred to as “producers” in the insurance industry. In either case. theft. and businesses select insurance policies that provide the best protection for their lives. health. disability.LIFE INSURANCE AGENTS WHAT DOES AN LIC AGENT DO? Most people have their first contact with an insurance company through an insurance sales agent. These workers help individuals. For businesses. Depending on the policyholder’s circumstances. life. and other events that can damage property. Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. a cash-value policy can be designed to provide retirement income. or other benefits. Independent insurance agents. families. agents prepare reports. in the event of a loss. funds for the education of children. maintain records. or medical malpractice claims. Insurance sales agents. or brokers. and long-term care. help policyholders settle their insurance claims. Property and casualty insurance agents sell policies that protect individuals and businesses from financial loss resulting from automobile accidents. and. fire. Health insurance agents sell health insurance policies that cover the costs of medical care and loss of 32 . seek out new clients. Insurance sales agents who work exclusively for one insurance company are referred to as captive agents. sell one or more types of insurance. property and casualty insurance can also cover injured workers’ compensation. such as property and casualty. product liability claims. represent several companies and place insurance policies for their clients with the company that offers the best rate and coverage.

A 17-18 day training schedule covers the mandatory IRDA training 33 . it is important that they maintain regular contact with their clients to ensure that the clients’ financial needs are being met. State of the art infrastructure training facilities coupled with an excellent faculty. which are very relevant in a service-driven industry like life insurance. guarantee an exceptional learning environment.and long-term-disability insurance policies. There is a further focus on soft skills such as communication. For agents who might be occupied with their daily business/professional routines. agents devoted much of their time to marketing and selling products to new clients. managing long-term relationships and selling skills. a practice that is now changing. The growth of the Internet in the insurance industry is gradually altering the relationship between agent and client. Developing a satisfied clientele that will recommend an agent’s services to other potential customers is a key to success in this field. This interaction gives the client a more active role in selecting a policy at the best price. Increasingly. Because insurance sales agents also obtain many new accounts through referrals. In the past. They also may sell dental insurance and short. clients are obtaining insurance quotes from a company’s Web site and then contacting the company directly to purchase policies. professional programs that help them remain well-informed and knowledgeable about the company’s products in the market. while reducing the amount of time agents spend actively seeking new clients.LIFE INSURANCE AGENTS income due to illness or injury. Training Our agents go through both generic and specific.

etc. Expectations from the organization in terms of chalking a career in the insurance industry are also discussed. Each of 34 . This program helps agents build a full time career as a Development Officer in the organization.LIFE INSURANCE AGENTS requirements and LIC product-training module. Though individual meetings with his or her Development Officer. Theoretical training is interspersed with practical appointment settings with potential customers. the agent can discuss various issues related to business development and career enhancement. Rewards And Recognition LIC agents are constantly recognized and rewarded for their performance. offering great potential for managing a team of agents and personal development. Career Career development is emphasized upon from the very day the agent joins the system. Depending on the level of business the agent achieves in a year. he or she can become a member of various clubs such as the Corporate Club. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. giving agents a feel of how their business will work from the very first day. Absorption into the management is another career enhancement option provided at LIC. Numerous competitions all year round promote healthy competition amongst agents and recognition for their efforts. the Development Officer and the management provide continuous support to the advisors in achieving independence towards garnering business. the Chairman’s club. All through.

LIFE INSURANCE AGENTS these clubs have specific performance criteria for qualification and members of these clubs are entitled to attend seminars held at exotic international and domestic locations each year. than-average opportunities should college graduates with proven sales success in other 35 . Insurance Sales Agents – Significant Points Despite slowergrowth. In addition to offering insurance policies. job be good for and persons ability or occupations. etc. Successful agents often have high earnings. Advisors can also qualify for the renowned MDRT (Million Dollar Round Table). such as mutual funds. retirement funds. agents are beginning to sell more financial products. an exclusive international insurance advisors club. NSC’s. but many who assume agent jobs fail to earn enough from commissions to meet their income goals and eventually transfer to other careers.

the employees of different Insurance Companies.5% each year.5%. On the contrary. the Agents community again started to raise their voice demanding of Central Government for safe-guarding the interest of the policy holders. The staff regulation came into force from 1958.e. “Your services are no longer required. i.LIFE INSURANCE AGENTS HISTORY AGENTS MOVEMENT Before independence Agents were paid @ 40% of first year’s premium.e. Those Actuaries were bound to bend down with a compromising attitude by adjusting the 5% to second and third renewal commission by increasing @ 2. After independence. the situational fate of the then Agents were like that if any Agents had raised their voice on any matter. S. they were engaged from other trades. i. started agitation for their own interest. The Agents of undivided Bengal started movement against this under the leadership of S. On the other side. In 1940 the then Actuaries tried to decrease this percentage to 35%.” Moreover. most of the Agents (about 85% to 90%) were part timer. they were expelled/terminated from LIC with a small letter depicting. whereas there was no regulation for Agents. the first year’s commission was reduced to 25% from 35% and 10% was paid as bonus after completing 10 lives. The scenario of that time. Canada). the government of India thought the necessity of nationalization of Life Insurance Sector to use the deposits from the policy holders for the sake of nation building.e. i. from 5% to 7. who had lost their jobs/were not getting their salaries. when many Insurance Companies were closed and/or declined to pay the claim. some of 36 . As a result. Ali (Agent of Sun life.

The first achievement of this forum is that they succeeded to convince Sri T.” In 1978 this LIC Agents’ Association was compelled to change their name as “LIC Agents’ Organization” due to some unavoidable circumstances formed by some LIC Agents who acted as underling of the management and got a registration under the Society Registration Act in the name of “Life Insurance Agents’ Association. A. Pai. Government of India) and Secretary Ship of Sri S. where Agents’ interest was given prominence. was not accepted by the Central government. the report from Hanumantaiya Committee. Nandi. few Agents tried to unite themselves against management in the name of LIAFI in 1964. L.LIFE INSURANCE AGENTS them being employees of State and Central government offices. In 1987 the “LIC Agents’ Organization” decided to spread the union throughout India and for that cause the name of that union was changed to “All India LIC Agents’ Organization.” 37 . Mubarak Committee and Joint Parliamentary Committee. A joint forum of likeminded Agents was again reunited in 1967 in the name of LIC Agents’ Association with the President ship of Sri Indrajit Gupta (later on Home Minister. In such situation. On the contrary. the then Chairman of LIC in 1971 to form a “Regulation for Agents.

often does not need a lot of coaxing to perform. Different people are motivated for different reasons both personally and professionally. when it comes to managing employees. it must be self-induced. understanding an associate’s individual motivating factor can enhance coaching opportunities and improve productivity while reducing turnover. it has no real value. motivation is not a one-size-fits-all concept. A well-known athletic apparel company’s logo simplifies the act of “just doing it” and this would be a whole different world if everyone just did. Their philosophy is that if they can’t cash it. However. 38 . They respond best to cash reward-based spiffs and bonuses which can be offered as additional incentives. but is also often the mindset of an employee that has a purely financial perspective on employment opportunities. Particularly where employer/employee interactions are concerned. they operate from a ‘put it in my paycheck’ mentality. This employee is usually self-motivated and as a result. Instead. Five common motivation factors are: Compensation “Show me the money!” This phrase is often heard at casinos around the world.LIFE INSURANCE AGENTS MOTIVATIONAL FACTORS FOR A LIFE INSURANCE AGENTS It is human nature to try to motivate another person from the same basis as one’s own perspective. rather. A professional that is motivated by money is less concerned about title. being motivated is an internal effort and therefore arguably cannot be instilled in someone else. This is especially common amongst people in commission-based positions. Unfortunately. perks or even recognition.

” Despite society’s perspective. Security The well-known definition of insanity is to do the same thing over and over and expect a different result. There’s an old joke about a 4039 . Is it the sense of accomplishment or the bragging rights? Perhaps a little of both! Most contenders just aren’t as excited about the silver medal or being the runner-up. doing the same responsibilities over and over with a consistent result is considered job security. Offering constant reinforcement of advancement opportunities and highlighting examples of internal promotions are excellent ways to maintain a high level of motivation for this associate. a photo on a wall. and from horseracing to reality TV shows. Recognition From the Grammy Awards to The Emmy Awards.000/year more than the start-up venture group that was also interested in him. His desire to learn and grow in his new position with the start-up outweighed the income potential of the corporation. His decision was based on his theory that it’s not just about the money. Sadly in fact. second place has been referred to as “the first loser. simply receiving accolades for the effort of a job well done at any level is their motivating factor. In the workplace.LIFE INSURANCE AGENTS Advancement A 26-year-old college graduate was convinced that he was making the right decision to turn down a position with a well-established corporation offering him a salary $15. for some people. a designated parking spot or a shout out at the department meeting can mean more than a bonus to the employee motivated by recognition and usually doesn’t impact the company budget. our culture has trained us to focus on first place. Recognition builds self-esteem and confidence while setting a positive example for others. On the other hand. An employee that is motivated in this way genuinely thrives on the concept of moving up the corporate ladder.

advancement. Identifying one’s own motivating factor can be the trigger to hitting a goal. a personal objective or a self-established goal is the greatest encouragement to the employee that is more motivated by personal satisfaction than money.” In the case of the security seeking employee. It is common for this employee to be willing to commit to activities that are beyond the call of duty in an effort to move closer to fruition of their own desire and not for any “at-a-boys” from the boss. When assured often that their position is valuable and necessary for the long term vision of the company. they found an old index card that read: “credits on the left…debits on the right . minimal change implies safety and increases motivation. Recognizing what motivates others will have a positive impact on the process of building good relationships both at the office and at home. After his retirement. recognition or security. Personal Satisfaction If the dream is big enough the facts don’t count. his associates were anxious to see just what it was that he peaked at daily. it reinforces a comfort level and encourages maximum effort. Upon looking. 40 . An aspiration. In coaching this team member. gain a respectful understanding of their personal agenda and offer support to focus on what is necessary to accomplish those individual objectives which will simultaneously attain professional goals.LIFE INSURANCE AGENTS year-veteran accountant who would start every day by looking in his top right-hand desk drawer.

or agents. "Insurance and mutual funds are very different businesses. J Hari Narayan. The Swarup committee's consultation paper on minimum common standards for financial advisors and financial education has suggested that insurance commissions must be eliminated by April 2011. In a discussion paper. It has a time-tested structure. Any move towards dismantling the commission structure would only lead to a collapse of the insurance industry. has opposed the elimination of the commission structure in insurance. Hari Narayan said equating insurance with mutual funds might present a distorted view. saying that such a move would be a death-blow to the industry. the D Swarup committee on investor awareness and protection has suggested that the commission structure for insurance intermediaries.LIFE INSURANCE AGENTS IRDA SUPPORTS AGENTS COMMISSION The chairman of the Insurance Regulatory and Development Authority (Irda). The committee is due to finalise its report soon. The panel has pointed out that the mutual fund industry has taken similar steps by eliminating entry load with effect from August 1. "The insurance industry in India has thrived for many decades. Instead. It would not be proper to impose the mutual fund experience on the insurance industry. be phased out in line with the removal of entry load in mutual funds. the intermediaries should be paid a fee for their services. Hari Narayan said equating the insurance industry with mutual funds was fraught with danger." he said." 41 . Opposing the move.

000 mutual fund agents. 42 . however. and 55. "There is no issue on suggestions that we need to maintain transparency on the commissions charged. they should be paid through a fee structure. the adviser and the consumer the panel has said. agreed with the Swarup panel's suggestions for transparency on commissions charged by agents. In fact. according to the Association for Mutual Funds of India (AMFI). It has suggested that since agents fulfill the needs of the consumer.LIFE INSURANCE AGENTS He.' There are 2. surely the consumer should directly compensate them to ensure service.fee model for the entire financial sector. and then using outcome-based regulation to ensure a fair deal for all market participants." The Swarup committee has suggested that the entire financial sector should convert to "no-fee' the producer's or their own? And if they are the agent of the consumer. the insurance industry already maintains a high degree of transparency on charges. the producer. according to the Life Insurance Council.7 million insurance agents." It is an opportune time for India to set global standards by following a no-load. 'The key question here is: whose agent are they” the consumer's.

According to the Bureau of Labor Statistics. New agents typically need extra pay from the insurance company or a second job to subsidize their pay. calculate the value of the property and work closely with the realtor and mortgage company to get the proof of insurance paperwork done for the closing. and are the proprietary information of insurance companies. with the expectation being that the agent can sell a higher volume that adds up to higher pay.LIFE INSURANCE AGENTS WHAT KIND OF COMMISSION DO INSURANCE AGENTS GETS ? With the high cost of insurance. It takes 2 to 5 years for this to become a steady payment. there are parameters that are known by people in the industry. The commission per sale is lower for auto insurance.  Auto Insurance Auto insurance typically pays a commission of between 5 and 10 percent. Commissions paid out vary by policy type.  Home Insurance Home insurance typically pays around a 10 to 20 percent commission. Sales made on the Internet pay less than direct sales. with the average being 15 percent.  Life Insurance 43 . however. it is common to question how much of your insurance payment goes to the agent. in 2008 the median income for insurance agents was $45. until the renewal payments build up. The commission is higher because it is more work intensive.430. Renewals can be lower than the first year or term. Home insurance agents do inspections of the house.

Some agents work on a fee basis instead of commission.  Business Insurance Business insurance commission is between 5 and 20 percent. Workers' compensation pays less than package policies and general liability. Shortterm policies pay less and agents earn more the first year than in renewal years. these are called insurance consultants.LIFE INSURANCE AGENTS Life insurance commission has the greatest variance. Some business agents can work on a fee basis rather than commission. which results in reduced commissions.  Health Insurance Health insurance agents earn between 5 and 20 percent commission. Also. Life insurance companies and investment companies typically pay higher commissions than auto and home insurance companies. term life insurance pays lower commissions than permanent life insurance--whole life and universal life. depending on the company and type of policy. 44 . and a renewal commission usually drops to less than 15 percent. It depends on the company and type of policy. Sometimes agents have to use managing general agencies to place more complicated accounts. The commissions can vary from 15 to 80 percent. The first year pays the most. There is some flexibility with larger group policies in terms of commissions and renewals.

List the most exciting benefits your agency provides.LIFE INSURANCE AGENTS HOW TO RECRUIT INSURANCE AGENTS ?  An insurance sale is a competitive field that requires top-notch agents to sell the services the agency provides to the consumer. focus your ads on your company culture and what you can offer the right individual. they tend to be easy to train. as they have no preconceptions of how an insurance agency should operate. Many of these graduates are eager to prove 45 . While a new graduate may not have the years of experience that a more seasoned agent will have. Any one of these insurance agency owners or managers that you will meet may know a great experienced candidate that they were unable to hire. you should clearly explain in your job listing the exact experience requirements and track record you expect to find in the ideal candidate. Meeting other insurance industry professionals is a great way to network.  Attend job fairs at local colleges. There are several ways for an insurance agency to attract top insurance agents. The success or failure of an insurance agency is dependent upon hiring the right people to serve as agents. and detail any advancement opportunities that may be available for the right person.  Place ads on the major job boards advertising the position. but networking is often the best way to find out who in your market can provide the best service to your customers.  Anyone who has worked as an insurance agent will have a firm understanding of the duties of the job. To attract the top caliber of talent that you need. To stand apart from the other agencies that have open positions.  Join the local branches of the national insurance associations.

Many times your employees will know other agents or someone who has the potential to succeed in the industry with a bit of training. skills and work experience of the people looking for a new job. and they often have a database they can search based on the education. While hiring someone that your employees know can help make the candidate's transition into the company culture smooth.  Contact your town's local career center or unemployment office and let the people that work there know that you are hiring. These professionals know who in your market is unemployed. There is typically no cost to employers to be matched with qualified employees. 46 .  Ask your current employees who they know. be wary of hiring relatives or spouses of your current employees.LIFE INSURANCE AGENTS themselves and as a result will work hard to succeed.

Some life insurance policies offer a cash value that can be used for supplementary retirement income.700 per year.000. Nationwide Average Wages The nationwide average salary for a life insurance agent is often used by employers to determine a specific salary package for a potential employee.000. Indeed states that the average salary for a life insurance agent is $105. and the median wage at $45. Type of Business The specific type of business influences a life insurance agent's annual income level.500. According to Simply Hired. According to the Bureau of Labor Statistics in May of 2009. college tuition expenses or other financial needs.LIFE INSURANCE AGENTS HOW MUCH DOES AN AVERAGE LIFE INSURANCE AGENT EARN IN SALARY? A life insurance agent sells insurance policies that pay beneficiaries upon the death of a policyholder. The Bureau of Labor Statistics in May of 2009 reported the mean annual wage for an insurance agent at $61.660 on a yearly basis. Many life insurance agents also sell annuities that provide income upon retirement. and insurance agents who worked for brokerages earned $61. Topping the charts.210. a life insurance agent employed by a travel arrangement and reservation company earned an average of $53. the average annual salary for a life insurance agent is $62. A life insurance agent's average annual salary depends upon national salary averages.330. business type and geographic location. Those employed by insurance carriers earned $61. 47 .

785 a year. The top 25 percent of insurance agents earn $49. New York and Rhode Island earned $59. Low to High Range Salary. and the top 10 percent earn $54.630 and $80. Those residing in Florida. 48 . insurance agents employed in Louisiana earned an average of $45.873 or more on an annual basis.LIFE INSURANCE AGENTS Geographic Location Geographic location partially determines a life insurance agent's average annual salary range. Those in the 25th percentile of wage earners make $40.265 on an annual reports that the lowest 10 percent of insurance agents earn below $36. $71.280 respectively.000 a year. According to the bureau.540.733.

the average earnings for an insurance agent is between $27. An agent can obtain a license to sell multiple lines of insurance or specialize in a particular area such as automobile or life insurance. Education A college education is not always a requirement for employment as an insurance agent. 49 . home. automobile and health policies to clients. courses such as psychology and public speaking can help the insurance salesperson communicate effectively with potential clients.LIFE INSURANCE AGENTS REQUIREMENTS FOR BECOMING AN LIFE INSURANCE AGENTS Insurance agents help individuals and businesses find insurance policies that best meets their needs. An insurance sales agent can sell life. According to the Bureau of Labor Statistics. State licensure requirements for insurance agents do require the candidate to complete a training program to qualify to take a state examination.726 as of January 2011. accounting or business to work in the position. According to PayScale. Some employers may prefer candidates with a degree in finance.351 and $46.

LIFE INSURANCE AGENTS License Requirements All states require licensure for insurance sales agents. Insurance agents must obtain separate licenses to sell different lines of insurance in the state. Continuing education ensures that the agent is current on the latest changes in state law and regulations in the insurance industry. The examination for insurance agents tests the candidate'sknowledge of state law regarding insurance. License renewal may be required every two years. 50 . Continuing Education The state may also require insurance agents to complete continuing education courses to renew an insurance agent license. The requirements for course work and examinations may be different for each line of insurance the agent sells in the state. Individuals must be skilled in the use of standard office equipment such as computers to perform the duties of the job. The insurance agent may actively seek new clients and must have good time management and organizational skills. which include completing a course and passing a state examination. Skills A successful insurance agent must have good communication skills and the ability to impart technical information to clients.

For example. the Health Insurance Portability and Accountability Act (HIPAA) is a federal law that applies to state regulated health insurance policies in regards to all requests for medical information and disclosure. some forms of insurance are subject to both state and federal laws. you transfer financial risk from yourself to the insurance company. of course. Additionally. and the company collects this money as a premium for the insurance protection. By purchasing insurance. This risk transfer costs money. Significance Insurance is regulated at the state level. you may be tempted to contact your agent.LIFE INSURANCE AGENTS CAN AN INSURANCE AGENTS CAN NEGOTIATE A CLAIM ? Insurance allows you to use your financial resources more efficiently. This law limits what your insurance agent can do for you since your agent cannot access information about your health conditions unless he obtains written permission from you first. 51 . but agents are limited as to what they can do for us. When you must file a claim.

Your agent may also have experience with how the claims process works if he's been in the business for any length of time. the agent should refer you to a claims representative who can then assist you with the filing of your insurance claim. For death benefit claims arising from life insurance settlements.LIFE INSURANCE AGENTS Benefit Many insurance agents may try to help you during the initial stages of filing a claim. Insurance company internal policy may prohibit this. Limitation Your insurance agent cannot negotiate a claim for you. The claim is handled by an insurance adjuster. Agents can help you fill out the claim paperwork and turn this information in to the insurance carrier. Consideration Your insurance agent can help you fill out a claim form. the insurance agent can often speak with the customer service department at the insurance company home office to get an approximate time frame for the settlement process. laws such as HIPAA may actually make it illegal for the agent to assist you in negotiating a claim if the agent cannot access your health information. casualty and health 52 . and can provide you with the customer service numbers you need. only the insurance adjuster has the authority to make a decision about claims and will normally death directly with a claims representative. For property. then paid out according to the terms and conditions of the insurance contract. Finally. This is handled by the insurance adjuster and claims representative. Additionally. Therefore.

this may also be possible.LIFE INSURANCE AGENTS insurance. depending on the nature and complexity of your claim. 53 .

such as the state of New York. according to a March 2010 article in the Wall Street Journal titled "A Hot Job for Hard Times: The Life Insurance Agent. you also may want to consider becoming a certified financial planner as 54 . Educate Yourself Selling life insurance requires knowledge of the insurance industry and investment vehicles such as annuities and IRAs. If you can help a customer save for retirement with the investment portion of a whole life policy. There are several success tips for selling life insurance that can help you generate revenue. Get involved in ongoing education in the life insurance field to be certain you have the most up-todate knowledge you need to offer your clients the right solutions." Becoming a successful life insurance agent requires more than an outgoing personality. Term life insurance is less expensive than whole life. Create Value According to the Wall Street Journal. require a life insurance agent to be licensed. you need to create value for them. but it expires when the term is up. in order to appeal to a potential customer. To gain clients' confidence and show that you stay involved in the financial industry. The protection a 30-year term life policy offers a family with a new 30-year mortgage can add value for the family and help you close the sale. Some states.LIFE INSURANCE AGENTS SUCCESS TIPS FOR SELLING LIFE INSURANCE Life insurance agents are in demand. then that adds value to the insurance. and that requires at least 40 hours of classroom training.

life insurance sales are aided by customer referrals.LIFE INSURANCE AGENTS well. Make your customers feel as though their life insurance needs are important to you. Show You Care According to the online insurance agent resource Advisor Today. 55 . Customers may be more apt to refer you to their friends and family if they feel you genuinely care about getting them the right insurance and that you have a passion for what you do. Spend time with your customers explaining why you sell life insurance and make appointments just to listen to their concerns and plans for the future.

choose articles that mention the departed having or not having life insurance. Partner with Professionals If you are a chamber of commerce member." every agent should have a website to reach potential clients. you would let your clients know about a real estate agent's services.LIFE INSURANCE AGENTS UNIQUE IDEAS TO ACQUIRE LIFE INSURANCE CLIENTS Selling life insurance is hard. people do not have their death penciled into their agenda. does not directly benefit the policyholder. If you sell life insurance. For example. offers safety advice and even gives tips about funeral planning or end-of-life preparations. Symetra Financial advises asking real estate agents to mention your services as mortgage pay-off protection whenever they sell a new home. consider these unique ideas to acquire life insurance clients. however. Start a Blog According to "Life Insurance Selling. Obviously. in a Kiwanis group or greeters association. Start a blog on your website that frequently reports on current events involving the death of individuals. When referencing news events. In return. Life insurance. Make sure you clearly mention the states in which you are licensed to sell life insurance policies on your website and blog as well. collaborate with professionals you know in other fields. it protects their family from financial hardships when a loved one dies. 56 . however. might not be enough. A website. or think life insurance is just another way to spend money.

funeral homes and colleges. 57 . Consider purchasing ad space on funeral home brochures and placing ads or writing articles for hospital and college newsletters about the importance of protecting family members from financial hardships. You and your client may find that the discount he would receive may cover the cost of a life insurance policy or greatly reduce the overall premium. During the policy review. you can update the client's existing policies to make sure they have sufficient coverage in the event of a loss and give them a life insurance quote during the same meeting.LIFE INSURANCE AGENTS Other ideas include collaborating with pediatric doctors. Annual Policy Reviews If you sell different types of insurance. If you work for a company that offers client discounts for having multiple types of insurance policies. Clients served by these professionals are caring for a new life. offer your clients annual policy reviews. show your client how much life insurance would cost with the discount. have experienced the cost of a life just lost or have acquired a debt with which they do not want to burden family members.

But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. and covered Indian lives at normal rates. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. the first Indian life insurance company started its business 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. the foreign life insurance companies started insuring Indian lives. The brief history of Insurance in India with some of its milestones in the life insurance business in India is: 1870: Bombay Mutual Life Assurance Society.LIFE INSURANCE AGENTS INSURANCE INDUSTRY IN INDIA Life Insurance in its modern form came to India from England in the year 1818. 58 . Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. However. later with the efforts of eminent people like Babu Muttylal Seal. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

frames a code of conduct for ensuring fair conduct and sound business practices..LIFE INSURANCE AGENTS 1956: 245 Indian and foreign insurers and provident societies taken over by the central Government and nationalized. set up. on the other hand. 59 . the first company to transact all classes of general insurance business. with a capital contribution of Rs. the first general insurance company established in the year 1850 in Calcutta by the British. LIC formed by an Act of Parliament. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1957: General Insurance Council. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. a wing of the Insurance Association of India. viz. can trace its roots to the Triton Insurance Company Ltd. The General insurance business in India. 5 crore from the Government of India. LIC Act. 1956.

The demand for insurance is likely to increase with rising per capital incomes. 107 insurers amalgamated and grouped into four companies viz. After Korean and Taiwanese insurance sectors were liberalized. the New India Assurance Company Ltd. Post independence.LIFE INSURANCE AGENTS 1972: The General Insurance Business (Nationalisation) Act.. and the United India Insurance Company Ltd. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. which is currently done. the Korean market has grown 3 times faster than GDP and Taiwan the rate of growth has been almost 4 times than that of its GDP. rising literacy rates and increase of the service sectors. It will also generate greater awareness on the need for buying insurance as a service and not merely for tax exemption. the Oriental Insurance Company Ltd.. Among the emerging economies. opening of the sector to private firms has and will further foster competition. 60 . India is one of the least insured countries. 1972 nationalised the general insurance business in India with effect from 1st January 1973. innovation and variety of products. the National Insurance Company Ltd. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. GIC incorporated as a company. Insurance is one sector whose contribution to GDP is quite significant. Further. but the potential for further growth is phenomenal. the Indian Government nationalized the private life insurance companies with a view to raise funds for the infrastructure developments.

The insurance Premium as a Percentage of GDP was 14% for Japan. While Japan has 31%. 61 .. India also has highest number of life insurance policies in force in the world. European Union 25% . 400 billion business in India’s and together with banking services adds about 7% to India’s gross domestic product (GDP) gross premium collection is about 2 percent of GDP and growing between 15 and 20 percent per annum. it is quite low in India per capital insurance premium in India in 1999 was only $8 while it was $ 4800 for Japan. Insurance is a Rs. it is only 0. 35% for other European and American countries . $ 887 for was only 9% for India in 1999 The share of India in the World market in terms of Gross insurance premium is again very 1000.3% for India. 12% for Korea.7% share of the global insurance premium. South Africa 2. 9% for UK and less than 2% in India in 1999 Similarly the insurance Premium as a percentage of Gross Domestic saving (GDS) was 52% for U. $ 1000 for Republic of Korea. For instance. $ 823 for Hong Kong and $ 144 for Malaysia. 13% for south Africa. While per capita insurance premium in developed countries is very high.LIFE INSURANCE AGENTS which lagged behind pathetically.K. Yet more than three fourth of India’s insurance population has no life insurance cover the penetration of insurance is very low in India the following indices support this contention. Canada 1.

the Korean insurance market. Sigma Report presented by the world’s second largest reinsurer Swiss Re on global insurance.LIFE INSURANCE AGENTS The insurance premium in India accounted for a mere 2% of GDP as against the world average of 7. the 30th largest market in the world premium volume in 1971 obtained the 6th position in 1996.95% as compared to 52. The other reason as to why the global insurers are interested in investing their funds is the nature of the Indian markets. International insurers capture a significant part of their business from their multinational operations only.5% in UK.8% and G-7 average of 9. For example. the reason being its multinational operations.2% during 90s. a) Global investors prefer Indian insurance markets: Multinational insurers are keenly watching the transformation of the Indian insurance sector. Spreading the area of operations over a wide geographical area would eliminate sudden dips in earnings due to the unexpected risk spread. UK’s largest life and non-life insurers acquired 40% to 60% of their total premium from their multinational operations. mainly because the domestic markets have become saturated for the respective insurer. The foreign investors are finding the Indian market more attractive because even a small share of a growing market looks lucrative. reports complete saturation of international 62 . The insurance premium as a percentage of savings in India is 5. Generally insurance companies operate on the principle of spreading. The nationalized insurance companies could barely unearth the vast potential of the Indian population since the policies lacked flexibility and the Indian life insurance products are not linked to the contemporary investment avenues.

market. b) Effects Of Global Insurance 1.More job opportunities: Opening of the insurance sector to the foreign investors has led to a renaissance in the Indian economy. Job opportunities show bright signals. The people working in insurance sector in India are approximately the same as in the UK, which has 1/7th of Indian population. There is the new concept of banc assurance that has paved the way for more job opportunities in the financial sector. There would be demand for specialists in the area of marketing, finance and human resource management apart from the demand for technical expertise from professionals in the field of underwriting and claims management subjects. 2.Inflow of foreign capital: There would be huge inflow of funds into the country with foreign capital splurging in the Indian insurance companies as startup capital. 3.Indigenous reinsurance: Even the reinsurance sector looks for opulence with global players like Swiss Re and Munich Re keen on entering into the insurance industry in India. While there will be a deep fall in the outward reinsurance, India would receive inflow of funds from the neighboring countries. If the legislative support offers a congenial atmosphere, a la Lloyds in India is not far off. 4.Technology transfer: Apart from the above monetary aspects, there would also be a revolution in the transfer of technologies and knowledge from the global participants in the fields of training, risk management, underwriting, introduction of new policies etc. With more participants in the market, there would be healthy competition with increased advertisement expenditure for brand building. There would be scientific pricing methods. 5. Wide distribution channel: The channel of distribution is widened once the products offered are many. For instance, the seller himself at the point of sale itself can offer insurance for durable consumer items such as a television or a refrigerator. In such cases, the non-financial sectors also join in distributing the insurance products and benefit mutually. The opening up of the market for private players has encouraged international insurance giants

to enter the Indian market through the medium of joint ventures with Indian promoters. However, the foreign promoters' equity in an Indian insurance company is limited by law to 26%. The market has attracted participants from across the globe. A rich tapestry of foreign promoters from U.K., U.S.A., Canada, France, Germany, Netherlands, South Africa, Australia have descended on the Indian scene. All these promoters have probably sought to re-establish themselves in the Indian market where they had a presence prior to the nationalization of the industry. These companies have varied and rich experience in insurance underwriting and administration and by joining hands with the Indian promoters have brought to Indian insurance market new management techniques and practices, underwriting standards, risk analysis and risk management techniques - all of which will indeed strengthen the Indian insurance market and afford the Indian customers risk covers at competitive costs. The participation from the Indian promoters point of view has also been rewarding. The insurance market has attracted financial institutions, big industrial establishments etc., to enter the insurance sector. Participation of banks and other financial institutions in the floatation of insurance companies is also subject to clearance from the industry regulator viz., Reserve Bank of India or National Housing Bank. c) The Insurance Regulatory and Development Authority: Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. In the liberalized insurance era, we have 15 life insurance players apart from the public sector Life Insurance Corporation of India and 9 general insurance companies apart from the 4 state owned companies viz. The United India Insurance, New India Assurance, Oriental Insurance, National Insurance Company. The private insurers have already proved their success by way of performance during the current financial year by way of 71% growth in the premium income.

TABLE 4: The lists off all these Life Insurance companies are given

Tata AIG Life Insurance Company Ltd. Shiriram Life Insurance Co. Ltd.LIFE INSURANCE AGENTS as: S. Ltd. SBI Life Insurance Company Limited . Ltd. Bharati –AXA – Life Insurance Co.Ltd. 1 2 3 4 HDFC Standard Life Insurance Company Ltd. Pvt . Ltd. AMP Sanmar Life Insurance Company Name of the Company Limited. ING Vysya Life Insurance Company Private Limited 9 10 11 Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Pvt.N o. ICICI Prudential Life Insurance Company Ltd. India Pvt. Pvt. 66 . Sahara Life Insurance Co. Ltd. Kotak Mahindra Old Mutual Life Insurance Limited 5 6 7 8 Birla Sun Life Insurance Company Ltd. 12 13 14 15 Aviva Life Insurance Co. Pvt. Max New York Life Insurance Co.

Ltd TATA AIG General Insurance Company Ltd. for the benefit of the common man. Name of the Company 1 Royal Sundaram Alliance Insurance Company Limited 2 Reliance Limited.LIFE INSURANCE AGENTS TABLE 5: GENERAL INSURER: S. clear and correct information about products and services and make them aware of their 67 . Bajaj Allianz General Insurance Company Limited 6 ICICI Lombard General Insurance Company Limited. General Insurance Company d) Mission statement of IRDA • • To protect the interest of and secure fair treatment to policyholders. • To set. and to provide long term funds for accelerating growth of the economy.No. monitor and enforce high standards of integrity. financial soundness. 3 4 5 IFFCO Tokio General Insurance Co. To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments). • To ensure that insurance customers receive precise. promote. fair dealing and competence of those it regulates.

• To take action where such standards are inadequate or ineffectively enforced. so the data collected was of only few months there for their correlation cannot be calculated. 2) Most of the companies have just started their business in Jalandhar. • To bring about optimum amount of self-regulation in day to day working of the regulation.LIFE INSURANCE AGENTS responsibilities and duties in this regard. to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery. 3) Information about the recruitment and the benefits of some of the insurance organization was not available to the full extent. industry consistent with the requirements of prudential e) Limitations: 1) The Data about the financial Advisors and number of policies in a year for various organization is not available in the print or any other media. • To ensure speedy settlement of genuine claims. transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players. • To promote fairness. It is taken from the various sources in the organization in the insurance organization at Jalandhar. 4) The information about the benefits and career opportunity has to be 68 .

the Authority shall have the duty to regulate. (1) Subject to the provisions of this Act and any other law for the time being in force. nomination by policy holders.LIFE INSURANCE AGENTS gathered by personal interaction by the officials of Insurance Organization. (2) Without prejudice to the generality of the provisions contained in subsection (1). surrender value of policy and other terms and conditions of contracts of insurance. business. insurable interest. code of conduct and practical training for intermediary or insurance intermediaries and agents.(d) Specifying the code of conduct for surveyors and loss assessors. -(a) Issue to the applicant a certificate of registration.(g) Levying fees and other charges for carrying out the purposes of this Act. the powers and functions of the Authority shall include.(e) Promoting efficiency in the conduct of insurance business. modify.(b) protection of the interests of the policy holders in matters concerning assigning of policy.(h) 69 . 1999 lays down the duties. settlement of insurance claim. renew. 5) The general public is unaware about the MetLife in the region ROLE OF IRDA Section 14 of IRDA Act. promote and ensure orderly growth of the insurance business and re. suspend or cancel such registration.(f) Promoting and regulating professional organizations connected with the insurance and re-insurance business.(c) Specifying requisite qualifications. powers and functions of IRDA.

(k) Regulating investment of funds by insurance companies. terms and conditions that may be offered by (3) insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act. undertaking inspection of. and(q) Exercising such other powers as may be prescribed 70 . advantages.(n) Supervising the functioning of the Tariff Advisory Committee.(j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries.(l) Regulating maintenance of margin of solvency.(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f). 1938 (4 of 1938).(i) control and regulation of the rates.(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries. insurance intermediaries and other organizations connected with the insurance business.(p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. conducting enquiries and investigations including audit of the insurers. intermediaries.LIFE INSURANCE AGENTS calling for information from.

LIFE INSURANCE AGENTS SALES & MARKETING IN SELLING LIFE INSURANCE S Selling life insurance for a living can be difficult. Implementing a few basic sales and marketing strategies can increase an agent's chances for a successful career. The telephone is typically the most effective prospecting tool. so it's advantageous to establish a niche to distinguish yourself from your competition. Uncover a Need 71 . so if they don't sell. Agents typically depend on commissions for their income instead of a salary. Consistent Prospecting Your insurance sales career won't be successful unless you have a steady stream of prospects to see. Be sure to set aside about two hours per day when you can make calls without interruption. they can't pay the bills. as it allows you to contact a large number of prospects in a short amount of time while still allowing for a "personal touch" not offered by emails or letters. Find a Niche Insurance is a competitive business. Consistent prospecting efforts ensure that you never have to worry about not having enough appointments. Establishing a niche can make it easier to obtain referrals. and people aren't always eager to discuss delicate financial matters with a stranger. Competition is fierce. A niche can involve marketing to a certain age group or occupation or specializing in a certain type of insurance. as people tend to associate with others who have similar interests or characteristics and often refer their friends to people they do business with.

This immediately increases the level of trust you have with the new prospect. Therefore.LIFE INSURANCE AGENTS People typically don't purchase life insurance unless they believe they need it. After you make a sale. ask the new client if she can refer you to others you may be able to help and if she's willing to make the introduction for you. making it much easier to obtain a sale. people are more comfortable dealing with someone they trust. Seek Referrals Life insurance can be a sensitive subject. One way to show the need in black and white is to use a tool called an insurance needs calculator. Your job as a life insurance agent is to uncover the need during your presentation and show the prospect how life insurance fulfills the need. which examines the prospect's overall financial picture and demonstrates what would happen if he were to die and his income is no longer available to his family. 72 . as you're discussing your prospects' personal financial information and goals.

but most importantly on using insurance to continue a lifestyle for his family. It is important you communicate this. If. This is a good. and take family vacations? Be armed with the cost of living ten years ago and the cost of living today. affordable way to begin coverage. It is important to make that client understand the value of buying the insurance now. This will only cause the client to reject the policy. the client has indicated a tight budget. it is time to match the client with the correct product. Listen to your client as a good insurance representative should. For instance.LIFE INSURANCE AGENTS TECHNIQUES IN SELLING LIFE INSURANCE Techniques vary when selling life insurance. Make your time pay off for both yourself and your client Meeting with the Client Obviously you're there to sell this client not only on yourself and your company. It is. without delay. Be prepared to deflect objections with answers. Listen to your client first. pay for a college education. never try to sell a policy that you know will be difficult for her to pay. However. if he is no longer there to support the family. Paint a picture of the family without the breadwinner. Keep an open mind as you are forming a profile of this client. as the name implies. good for only a certain 73 . during your meeting. this is not permanent insurance. Health conditions can change in the blink of an eye and life insurance approval is based on your current health condition. A term life insurance policy is a relatively inexpensive way to cover a person. will his widow be able to maintain the mortgage and upkeep on the home. Selling the Correct Product Once you have overcome the objections. and then ask questions.

This is a great selling tool and gives you a chance to go back in a few years and reexamine the family situation. fortunately. variable life or universal life insurance.LIFE INSURANCE AGENTS term. It is a cushion when the inevitable occurs. and a chance to maintain their lifestyle and pay for final expenses. there are a few options. As his agent. it is your responsibility. It is there as a death benefit: a means for your client to provide protection for those left behind. All three insurance products are permanent insurance products and provide different benefits. Importance of Having a Policy Whether you are selling term insurance or permanent life insurance. Your client can chose from whole life. again. There are term policies that can be sold with options for conversion to permanent policies. What better opportunity to upgrade the policy or sell additional products? If you are meeting with someone who. as long as there is a policy in place. the most important thing to remember is that the type is not important. You must be sure your client understands this. 74 . Remember that insurance is not to be used just as an investment. is not concerned with the cost of the policy but is more concerned with permanent insurance. to match the correct policy to her wants and needs.

Executive bonuses. deferred compensation plans. closing. 75 . Cold calling. But only a handful of them become millionaires doing this job. Then get appointed with either several companies if you are a broker or the single company for whom you will be a captive agent.  Take a life insurance test course and then schedule an exam at a proctor testing site.  Try to close the prospect in the first meeting.  Begin a massive prospecting effort by meeting with family. You will have a much greater chance of closing the sale in the first visit than in a subsequent one. it's all in a day's work for these professionals. paperwork. Prospecting. Retirement plans and nonqualified plans can pay huge streams of incomes to agents and brokers who are astute enough to land them. 401(k) plans and other similar sales can sometimes pay hundreds of thousands of dollars of gross commission. There are a few factors that separate them from the rest of the pack.LIFE INSURANCE AGENTS HOW TO BECOME MILLIONAIRE IN SELLING LIFE INSURANCE ? Life insurance sales are not for the fainthearted. It is a good idea to have some clients lined up before you start.  Try to get some corporate business... associates and acquaintances. appointments. Statistics show that the best salespeople can close a sale on the first visit. Your course provider will give you the details about how to do this. cancellations . friends. direct mail and Internet advertising are all methods to employ.

.. CHANGE NEGATIVE BELIEFS: If you are one of these people who say 'I can't do this' change this negative belief around.Why not you?? The only thing stopping you achieving success is your beliefs within yourself..Don't take it 76 . OBJECTIONS: With any objection.. 2... If you keep your current clientele satisfied.. her or them than it is to find a new client. Then use the strategies below to help you accomplish them. TOP 10 INSURANCE AGENTS SELLING STRATEGIES All the strategies below are the ones I teach in my Insurance agent training. SET POSITIVE OUTCOMES: Every month you should set yourself a goal for the number of policies you wish to sell. 1. there is only one rule. PERSISTANCE: Do not give up until you have reached your goal for that particular month.LIFE INSURANCE AGENTS  Service your clients well once you get them..So if you wanted to say sell 10 policies in a month that would be 1 policy every 3 days. It's infinitely easier to keep a client and get new business from him. Stick to this target.. Think about the fact that if others can do it. This is just a basic introduction as I'm sure you understand it is not possible to write one day training in a blog.. 4. You cannot become successful by quitting "QUITTERS NEVER WIN AND WINNERS NEVER QUIT" 3. then they will recommend you to other people--the most effective type of advertising there is.

it’s not necessary. When customers do object. whether they buy or not. they would not have sat down to speak to you in the first place. sounds complicated. In the agents workshop I run.. language. CONSCIOUS AND UNCONSCIOUS RAPPORT: Now conscious rapport you may already have some idea of. 7. they are objecting your policy. But what you are attempting to do is to talk to the conscious and in conscious mind with the use of word patterns that mean one thing to the conscious mind... you would need to see this demonstrated in a workshop environment.. in such a way that the customer is not conscious you are doing it. When you say this.. especially if the take out a policy. you may find that some customers reconsider and do take out a policy. But unconscious rapport is slightly more difficult to just explain in words. Always get at least One referral from every customer. What you are actually doing here is speaking ( in body language) to the customers unconscious mind. so the agents understands the patterns and. it involves you matching the customers' movements. If they were objecting you. They are not objecting to you. Do Not Reward.. 6. But I can assure you it does get positive results. Yes I know. That way. and something different to the unconscious. REFERRALS: Always get referrals from all your customers. and tone. how and when to use them..LIFE INSURANCE AGENTS personally. 77 .. voice. Have space on your feedback form for at least 5 referrals.. "That's fine. To understand this fully. say.. you will never run out of customers.not always! 5. Basically. I respect your decision and thank you for taking the time to listen to me". this is very difficult to provide reference in a blog as this is possibly a complete training in itself. this topic would last for about 2 hours. PERSUASIVE LANGUAGE: Now unfortunately.

.LIFE INSURANCE AGENTS 8. When you could call. When you hear that little voice in your head that says. However. Find a quite place everyday where you can relax for a few minutes. in her book "No More Cold Calling. I have personally been using it myself for many years. they will tell LOTS of people.. If people don't like you. or going door to door. Black. Never. If people like what you do." Selling an intangible product like life insurance can be extremely difficult when cold calling.. 10. you have no business or income. do you? Remember this. based on the use of unqualified leads. MAKE PEOPLE FEEL IMPORTANT: I cannot stress how important this rule is. CREATIVE IMAGERY: Another powerful Mind Programming method. you will only average two successful calls out of every 100 you make. What you Hear around you. "I CAN EASILY SELL 5 POLICIES EVERY MONTH" Then repeat as often as possible. They are your customers and without them. "I can't sell any policies". Notice what you See around you. yet a very effective strategy. Change it into a positive suggestion. Then image what it would be like to see yourself selling your policies successfully. according to sales expert Joanne S.. This is a Mind Programming method and very powerful. they will tell a few people. or make them feel bad in any way. there is a way you can sell life insurance without cold calling and create a successful practice. Never put people down. contact information and any company 78 . HOW TO SELL LIFE INSURANCE WITHOUT COLD CALLING? Cold calling is the sales lead generation process of picking up the phone. And What emotions you feel inside as you enjoy the success. Print business cards with your name. INTERNAL DIALOGE: Very simple. Which one would you prefer? 9.

and you never had to make a single cold call. If you work hard enough and talk to enough people. Your phone will start ringing with new clients. You will create a network of salespeople who will only get paid when delivering you a client. 79 . At the end of each appointment. Tell each friend and family member you talk to that you will pay a $50 referral fee for each new customer they send your way who signs up for a policy. Schedule appointments with as many friends and family members as you can. Offer the same referral bonus to the people your family and friends refer. You can even give business cards to your family and friends who do not take an appointment with you and offer them the same $50 referral program. Do not be shy about reaching deep into your phone book and maybe use your life insurance business as a reason to restart old acquaintances. and a very short summary of your life insurance products on the back. be sure to point out there is no pressure to buy anything. you will soon have a large network of sales associates alert to bring you business. When you ask your friends and family for appointments. People looking for a 10-year term life insurance policy will be more apt to call you if you let them know on your business card that you sell that kind of product. give each person you spoke to a small stack of your business cards and ask them to write their name on the back without writing over your product offerings. This will get your friends and family members to start asking their friends about their life insurance needs.LIFE INSURANCE AGENTS affiliation on the front. Present your life insurance products to your family and friends. You just want to show them your life insurance products and then give them a chance to make some money.

the daily work schedule is not fixed.  Schedule For most life insurance sales professionals. which means that you must work at times when most other people are off. Even if you do sell a substantial amount of insurance one month. Since becoming a life insurance sales professional requires you to go through training and get legally certified--which costs time and money--it is good to know the advantages and disadvantages of such a career before you commit yourself to it. if you fail to perform. this is usually your decision: you do not have to clear it with a superior. A disadvantage of the sales schedule for someone selling life insurance is the fact that most of your prospective clients only have time to meet with you in the evening or over the weekend. As with any other commission-based job. though. which means that they get a certain percentage of every sale they make as well as residual income when clients continue to make payments.LIFE INSURANCE AGENTS PROS & CONS OF SELLING LIFE INSURANCE If you like interacting with people and selling a product that is beneficial to everyone. you may not be able to sustain these sales numbers 80 . For this reason. you have the potential to earn much more than you would at an average hourly job.  Income Potential Life insurance sales professionals typically earn all or most of their income through commission. if you decide to take a day or a few hours off. As a sales professional. a career as life insurance sales professional may be for you. if you sell life insurance. you will not be able to earn anything.

companies often provide insurance sales forces with leads or with marketing systems that help to generate leads such as sweepstakes.LIFE INSURANCE AGENTS from month to month. companies often sales professionals family. To help with this. sales usually have to pay Additionally. When the marketing plans come from a company. insurance companies do not simply enroll anyone who wants life insurance. the value of this protection is real for all prospective clients. and this may result in an unstable level of income. For this reason.  Marketing The most difficult part about selling life insurance is finding people who are interested in purchasing a policy.  Helping People The purpose of life insurance is to offset the economic loss associated with the death of a contributing family member or loved one. but many professionals prefer third party professionals for them. Unfortunately though. They investigate the health and lifestyle of each applicant. they might not be very high quality. life insurance sales professionals pride themselves on being providers of important protection. Since anyone can die at any time. insurance encourage their to sell to friends and prospective sales not to do this 81 . free financial product offers and detailed marketing plans. Those who have diseases or lifestyles that mean a higher risk of death may have to pay substantially higher premiums or may not be able to get insurance at all. When such resources come from the insurance company itself.

82 .LIFE INSURANCE AGENTS because of the social strains that it could cause.

the sales will logically follow.  Choose the Right Prospects If you sit down with people who have an active interest in the product you are selling. Your clients will not all require the same products. your sales will improve without any drastic change in closing technique. Either way. nor should they buy products they don't need. Those with typical needs for life insurance include families with young children. Use short summary 83 .  Summary Presentations Even when your prospect agrees he has a need. Choose a target audience and focus your efforts on those people. No one ever closes every sale.LIFE INSURANCE AGENTS SALES CLOSING TECHNIQUES IN SELLING LIFE INSURANCE Many life insurance sales agents are in business for themselves or work for a parent company and are compensated primarily on commission. Don't rely on the "shotgun" technique of mass marketing and selling to everyone with a pulse. There are many types of products that meet various needs. wealthy people looking to avoid estate tax and businesses with key employees.  Fill Their Needs Life insurance is a diverse industry on purpose. your career as a life insurance agent is dependent upon closing sales. They will identify their needs themselves as you help uncover them. he might not understand how your life insurance product will satisfy it. but you can increase the chances of closing your sales appointments by adopting a few techniques. Spend more time asking questions and less time selling. Once they know their needs and agree they should be met. Get to know your prospects.

84 . maybe two or three pages. This will build trust between you and your prospect and increase your sales. to illustrate how your prospect's financial situation will vary whether he purchases your products or chooses to do nothing. Just relax and be yourself. 20 or 30 years. You will be more successful if you speak to your prospect simply. he will have greater incentive to buy what you offer. She is not likely to purchase a product that confuses her.LIFE INSURANCE AGENTS presentations.  Use Simple Language Sometimes agents like to demonstrate their knowledge by using technical terms and industry jargon. This almost never works. When he sees the long-term benefits of the insurance over 10. using language she understands.

com. Locate a state-approved training provider and complete the required training courses. A list of approved providers is found on the state's insurance administration website or through the state's examination vendor. Register to take the licensing exam with the examination vendor. Once you have passed. You will likely receive your test results instantly after the exam is completed. the courses may be completed in-person or online. Each state's licensing administration has separate requirements for obtaining an insurance sales license. 85 . life. health and life training and testing are combined. Your state's vendor information can be found on its insurance administration website. Research the licensing requirements of the states in which you are interested in working on each state's insurance administration website or through a multistate site. it may pay or reimburse you for the training and exams fees. Upon registration. If your employer is a brokerage or company that requires licensure. You may want to obtain multiple license types. Take the licensing exam. often. the vendor will send you a hard-copy handbook or guide you to downloadable information about the testing process on its website. Registration can be done online or by calling the testing vendor. There are three primary types of licensure: health. such as abtrainingcenter.LIFE INSURANCE AGENTS HOW TO OBTAIN AN INSURANCE SALES LICENSE ? Broker licensure for selling insurance products is maintained at the state level. Depending on your state. and property and casualty. you are considered a licensed broker who's eligible to sell insurance products in that state. The educator will provide you with proof of completion at the conclusion of the training course. You can obtain a license to sell insurance in multiple states besides your home state in a short time in a few steps.


The life insurance industry provides a challenging and lucrative career opportunity to recent college graduates holding financial degrees ranging from accounting to statistics. Agents formerly only offered and administrated insurance policies that paid cash benefits to survivors of the policy owner after death; now life insurance professionals provide a wide range of estate planning financial instruments to their clients. As the range of services has expanded so have the certification requirements; currently all 50 states require perspective agents to have a life insurance license.  Determine the level of financial services you want to provide to your clients. A Health and Life license permits the sale of basic insurance products such as term and whole life policies, but providing wider range financial services such as investment products and commercial securities requires more extensive licensure.  Be prepared to complete approximately 40 hours of course work prior to testing for a license. These classes include every aspect of basic life insurance sales from state and local regulations and laws to ethics and client management. Most states also require licensed life insurance agents regularly participate in continuing education courses; contact your state Department of Revenue to establish the specific educational requirements for your area.  Investigate the various educational outlets available to you. Life insurance licensure courses are available through many reputable institutions online and off. Consider the range of service you plan to offer clients; it determines the number of courses you'll be required to take.

Ensure the learning environment and teaching style are compatible with your needs and goals.

 Make application to the state to take the Life Insurance license exam and ensure you are on the list for the next scheduled testing. Be prepared and be on time; many states will not admit tardy applicants and will force them to reapply.












consumers.Insurance agents write insurance policies for consumers, most commonly life insurance and automobile insurance policies. While the earnings of insurance agents will vary greatly depending on the products they sell, one can generally expect to earn a decent living selling insurance. Each state has a Department of Insurance that carefully regulates the insurance industry, including the licensing of new agents. Learn more about getting your license to sell insurance.

 Determine what kind of insurance you want to sell. Each state has different licensing requirements for each type of insurance. The most common insurance licenses are: property and casualty (includes auto and homeowners) and life, health and accident. Many agents choose to become licensed in every major field.  Check with your state's Department of Insurance for specific agent licensing guidelines. Although general requirements exist, each state has specific guidelines. Most states require


along with specific instructions.LIFE INSURANCE AGENTS you to complete a state-approved pre-licensing class taught by a licensed insurance instructor. Once you have completed the course. Submit your employer's information to the Department of Insurance to receive your license. but are generally offered several times per year.  Register for your state-approved pre-licensing course. Testing schedules will vary from stateto-state. Many states use a testing-center such as Thomsen-Prometric. Once you have received a response. The classroom hours range from 16 to 32 hours per license. 89 .  Wait for a response from the department. take at least a few weeks to prepare for the state insurance exam. you will need to find a sponsor (employer) to receive your license. Most state departments have the needed forms available for download on their website. you will need to learn and memorize a number of important laws and regulations. If you choose to be an independent agent (self-employed) you will also need to obtain Errors and Omissions insurance. but contact your Department of Insurance to get exact instructions.  Submit your application to your Department of Insurance once you have passed the test.

as I have not found the accurate data in to refer. In case of pension plans. Let's find out what are figures approximately. Let's check with an example to find out how much an agent can earn. 90 .5% 7. 7. As per Insurance Act.LIFE INSURANCE AGENTS DO YOU KNOW HOW MUCH AN INSURANCE AGENTS CAN EARN ? Life insurance is a very well known investment option in everybody's life. Policy type Money back Endowment Single premium 1st year 15% 25% 2% 2nd & 3rd year 7.5 per cent of the second year’s premium and 5 per cent from there on.5 per cent of the first year’s premium and 2 per cent there on.5% nil From 4th year 5% 5% nil Here the percentages also vary based on term of that plan. Whether you need a policy or not you know that you have to do that policy to make your uncle or aunt happy. 1938. Besides that a bonus amount of 40% on commission is also payable. The commission paid is limited to 2 per cent in case of single premium policies. Only an overview of percentage of commission is considered. Otherwise the relationship might get hampered. The insurance companies are allowed to pay a maximum commission of 40 per cent of the first year’s premium. the commission is limited to 7. Based on some other sources I am sharing this. And almost every insurance policy you did already was done by any of your relative or local known person only. But now a days the structure has changed a bit.

91 .LIFE INSURANCE AGENTS Say You have subscribed to a Endowment policy of Rs 1 lacs for 20 year term. Check out the calculation below: Year 1st year 2nd & 3rd year 4th year onward till 20 year Commission Rs 25.000 Rs 5000 X 17 = Rs 85. The purpose of this article is to spread awareness about insurance agent's commission structure and earning potential. 25.000/. In such case your agent can earn an approx Rs next 20 year from your investment.000 Rs 7500 X 2 = Rs 15. In case any data is wrong or changed recently I would request you to update me by simply commenting on this post.000 So you can now understand the earning potential of this sector as well.

The agents are now finding life insurance agency as a financially and socially rewarding career option. With the steady increase in Life insurance business. training will assume a major role in the making the insurance retailer more professional.there are many insurance software products to aid the insurance retailer. In today's training of insurance agents. The emergence of professionalism is primarily due to the training initiatives to equip agents with skill set to compete in the post privatized insurance market. The life insurance agents are emerging as fullfledged insurance professionals from the pestering agents of the bygone days. The secondary but significant factor in catalyzing the professionalism is the technological advancement . the stigma attached to insurance retailers has transformed into respect for the efficient 'Investment Consultant'. personality development. selfconfidence development etc. With the public gaining better awareness about insurance need. the agents also enjoying increased income by way of commissions. the emphasis on premium calculation has shifted towards professionalism in marketing. We may confidently expect that in future.LIFE INSURANCE AGENTS CONCLUSION These institutions/trainers train the agents on many areas such as marketing skills. communication skills. which is evident in their sales performance. 92 . The use of computers and lap-tops as tools for selling has required the agents to transform themselves into techno-savvy retailers. The agents are now more confident in approaching clients of all social strata.

S. New Delhi.P (2006).com/industry/associations/irda council.LIFE INSURANCE AGENTS BIBLIOGRAPHY References to book: • Examination Book (2007). Insurance Institute of India. Mumbai. • 93 . Pre-Recruitment Examination for Insurance Agent. References to web Pages: • • • • http://www. Sultan Publisher. Statistical http://www.