How To Become An Insurance Advisor in India

An insurance advisor represents insurance providers to offer advice to clients about the various policies they can choose from. Not only do insurance advisors suggest policies suited to clients’ needs, but they also solve any queries customers might have about the policies, as well as educate them regarding the ins and outs of every policy. As per the Insurance and Regulatory Authority of India, there are three types of insurance advisors. However, before we move on to further discussion, here’s a quick look at how to become an insurance advisor.

Who is an Insurance Advisor?

Insurance advisors are certified individuals who help people and families find the most suitable insurance plans according to their requirements. Financial objectives are evaluated, appropriate policies are suggested, and insurance portfolios are managed by these professionals. The advisor will also explain the different terms of the policy, the premium structure, and the claim process so that the customer is aware of everything before making a choice.

Types of Insurance Consultants

There are various kinds of consultants you will find. Let’s take a look at the types –

Internal insurance sales agent

This insurance agent is a full-time employee of an insurance company. They are company-specific and only provide consultation and advisory services regarding the policies of the company.

Captive insurance agent

They are agents who sell only one of the products of an insurance company.

Independent broker/Point of sales

A point-of-sales person (POS) is an IRDAI-certified agent who has the advantage of providing a bouquet of policies from multiple insurance companies to their clients. Since many companies work along with PSOPs, IRDAI provides a license code linked to each PSOP, and since PSOPs are not restrictive with which company they work with, they can sell multiple insurance policies to clients at the same time.

Steps to Become an Insurance Advisor

Many people wonder about the insurance advisor requirements. The process is now simple, and you can do it online from the comfort of your home. This career will give you the freedom to work independently and earn commission-based income.

• Step 1: If you’re exploring how to become an insurance agent, your first step is registration. You can register directly on the IRDAI (Insurance Regulatory and Development Authority of India) website. You can also approach insurance companies or use aggregator platforms that allow agents to work across multiple brands.
• Step 2: Then comes mandatory training. IRDAI has laid out a 15-hour training module that can be completed online or offline. The training is available in several regional languages, making it accessible to a wide audience. Once completed, candidates receive a training certificate.
• Step 3: After that comes the pre-licensing exam. This objective-style test is easy to prepare for and requires a minimum score of 17 out of 50 to pass. After clearing this exam, the IRDAI issues an official license, allowing you to work as an insurance advisor.

Those curious about how to become an insurance advisor will find this path both flexible and rewarding.

Eligibility Criteria to Become an Insurance Consultant

Some basic insurance advisor eligibility criteria need to be fulfilled to become an insurance advisor.

Education

The applicant should have at least passed the tenth standard from a recognised board, as this is the basic requirement regarding insurance advisor qualifications.

Age

The applicant must be at least 18 years old at the time of application, so that they are legally eligible to enter into contracts and handle client-related responsibilities.

IRDAI Certification

The applicant should have an insurance advisor certification issued by the Insurance Regulatory and Development Authority of India.

State License

There is a license for the insurance business in every Indian state. You just have to qualify for the state-level exam in order to get a license as per the state’s regulatory policies.

Responsibilities of an Insurance Advisor

Listen carefully to clients to understand their financial responsibilities, dependents, and future plans, and then align products with these needs.

• Explaining Products in Simple Terms 

Break down policy features, benefits, exclusions, and charges in a way that clients can understand without prior technical knowledge.

• Recommending Suitable Solutions 

Use the information shared by the client to suggest plans that fit their budget, risk comfort, and time horizon rather than offering one standard option to everyone.

• Helping With Forms and Documentation 

Guide clients while filling proposal forms and collecting required documents so that applications are accurate and processed smoothly.

• Supporting Clients During Claims 

When a claim arises, assist clients or nominees with the process, documentation, and timelines, acting as a link between them and the insurer.

• Maintaining Regular Follow-up 

Stay in touch through periodic reviews to check whether coverage still matches the client’s life stage and make adjustments when necessary.

• Following Regulations and Ethical Standards 

Work within all IRDAI rules and company policies, ensuring that advice is honest, transparent, and in the client’s best interest.

Tips on Being a Good Insurance Advisor

• It is helpful to keep learning and adding to your knowledge, regardless of whether you work as an insurance advisor part-time or full-time. In today’s environment, this skill can support a stable and meaningful career.
• As an insurance consultant, it is important to build a genuine connection with each client and to undergo proper insurance advisor training. Once trust is established, you can present your recommendations in a way that holds the client’s attention and addresses their concerns.
• Effective insurance advisors stay aware of social and economic developments, follow current news, and are comfortable working with numbers. These qualities make their advice more relevant and strengthen the quality of guidance they provide.
• Last but not least, a good certified insurance advisor is equipped with the marketing tools of the time.

The Bottom Line

Whether it be sending clients an e-brochure of the policy they are interested in or emailing them a copy of the website with a quote from the insurance company, a professional agent always offers information so the client can learn everything about the policy.