An insurance agent is an individual who acts as a bridge between the insurance company and customers. The agent represents the insurance company and helps individuals buy the company’s products. Thus, the agent acts as the face of the insurance company for customers. For every product that the agent sells, he earns a commission on the amount of premium of that policy.
Types of insurance agents
There are various types of insurance agencies which are available. You can become any of the following types of agents –
- Life insurance agents are those who represent one life insurance company and sell products of that company
- General insurance agents represent one general insurance company and sell all types of general insurance products offered by that company
- Composite agents are those who can sell life insurance as well as general insurance policies
- Insurance brokers are those who are licensed to represent multiple insurance companies. Brokers can sell insurance plans for different types of companies.
- Corporate agents are companies which sell insurance products. Corporate agents can also represent multiple insurance companies
- Point of Sale Person (PoSP) is a relatively new concept of insurance agency. A PoSP is an individual who is allowed to sell both life and general insurance policies of multiple companies on a single PoSP license. PoSP agency is granted online making it simpler to become an insurance agent and sell insurance online.
Why insurance agency is a rewarding career
Insurance agency promises some of the best benefits which include the following –
- You can earn unlimited income from the commission you generate. There is no limit on the number of insurance policies that you can sell. Thus, the higher the policies you sell the higher the income you can get
- Insurance agency is like a business wherein you don’t have to put in long hours of work. You can work as per your convenience at any time which suits you and be your own boss.
- The agency does not require huge amounts of capital. You just have to pay a registration fee to register for the agency, clear the exam and start your own agency business easily. In fact, in many cases, like in case of becoming a PoSP, the registration fee is also not required to be paid making insurance agency a zero investment business.
- Anyone who has passed out Class 10 and is aged 18 years and above can become an insurance agent and sell insurance.
Besides these benefits, the future of being an agent is also bright. Do you what the future promises. Read on –
Renewal incomes through renewal commissions
Selling insurance does not mean that you get to earn a commission in the first year only. As the insurance policy is renewed by your customers, you earn renewal commissions too. So, with a one-time effort of selling insurance, you can generate renewal incomes over the years to come. This renewal commission can also become your annuity as it pays an income regularly.
There are three types of international convocations which are held specifically for the best performing insurance agents around the world. Agents from all around the world participate in these convocations if they have achieved the qualifying business target. The three international recognition are as follows –
- MDRT – Million Dollar Round Table
- COT – Court of the Table
- TOT – Top of the Table
So, insurance agency not only gives you attractive commissions, but it also gives you rewards and recognition not only nationally but internationally too.
So, the insurance agency is a lucrative career option which has a very good future. You can, therefore, establish your career as an insurance agent and grow it over the years.