How to Become a LIC Agent

About LIC Agent

Becoming an LIC agent can be an exciting and rewarding career choice. LIC (Life Insurance Corporation of India) is one of the most well-known and trusted life insurance companies in our country. As an LIC agent, you will have the opportunity to help people secure their financial futures, and you will play a vital role in promoting and selling LIC's various life insurance and health insurance plans.

To become LIC agent, there are specific steps you need to follow. First, you need to meet certain educational qualifications and possess skills related to financial planning and customer service. LIC offers a wide range of insurance plans to benefit its customers, and your role as an agent is to assist and guide people in selecting the right insurance plan that suits their needs.

LIC agents are essential representatives of the insurance company who work to encourage and assist customers in purchasing LIC plans. They can do this through personal interactions or online channels. What's great about this career is that LIC agents don't need to visit the branch office every day; they can efficiently manage their work online by logging into the LIC Agent portal. In this guide, we will explore how to become LIC Agent, helping you embark on a fulfilling journey of financial planning and customer service.

Who is an LIC Agent?

LIC agents are essential representatives of the insurance company who work to encourage and assist customers in purchasing LIC plans. They can do this through personal interactions or online channels. These professionals, often referred to as insurance sales agents or "producers" in the industry, play a crucial role in assisting individuals, families, and businesses in choosing insurance plans that offer optimal protection for their lives, health, and assets. Within this field, there are two primary categories of agents: captive agents and independent insurance agents, also known as brokers.

How to Become LIC Agent in India

After the interview with the development officer, the selected candidates will be called upon for the next stage in the selection process. Selected candidates are given training after which they have to sit for the IRDAI exam conducted by the Insurance Regulatory and Development Authority of India. Listed below are the steps leading up to the final selection process for LIC Agent recruitment.

• Those who pass the interview will undergo a comprehensive 25-hour training program at the Divisional/Agency Training Centre. This training covers all aspects pertaining to the life insurance policies offered by LIC.
• Following the successful completion of the training, candidates must sit for the Pre-Recruitment examination administered by the IRDAI (Insurance Regulatory and Development Authority of India).
• Achieving a minimum score of 35% in the examination qualifies you to receive an appointment letter from LIC of India. Along with this, you will also be granted an Identity Card, officially authorizing you to work as an LIC insurance agent.
• Your official journey as a LIC Agent begins when you are appointed at a branch office. Here, you will work closely with a team under the supervision of a Development Officer.
• To equip you for your role, you will receive essential field training and be provided with all the necessary details to kickstart your career in the insurance industry.

The recruitment process for LIC agents does not adhere to specific intervals or fixed schedules. Candidates who meet the qualifications for the examination and have successfully completed the necessary training receive test-related notifications individually. If you have registered for the examination, it is recommended that you either monitor the online registration portal for updates or maintain regular communication with your Development Officer to stay informed.

Exam Required to Become LIC Agent in India

This examination for the LIC agent recruitment programme is officially conducted by the Insurance Regulatory and Development Authority of India (IRDAI). This is the next stage of the selection process after candidates complete the comprehensive 25-hour-long training program at an LIC training center.

Eligible candidates are required to register themselves for the exam. The registration process can be done online through the official IRDAI portal, or offline (manually). Successful completion of the IRDA exam grants candidates a license to become an LIC agent. This license is accompanied by a certificate that remains valid for a duration of three years. 

IRDA Exam Pattern

The IRDA Exam primarily consists of 3 Phases:

• Phase I: Prelims Exam
• Phase II: Mains Exam
• Phase III: Interview

The IRDA Exam consists of various question types, including:

• Fill-Ups
• Yes - No
• Right - Wrong
• Match the Column
• Multiple Choice Answers

Application Process for IRDAI Exam

Prospective candidates interested in taking the IRDA Exam for 2023 have the option to apply through either of the following two modes, online or offline (manual). For online IRDA Exam registration, candidates should follow these steps:

• Visit the official website designated for the IRDA Exam i.e., irdai.gov.in
• Complete the online registration process as per the provided instructions.
• Alternatively, candidates who prefer the MANUAL mode of examination should adhere to the following procedure:
• Obtain an examination entry form (Annexure-III) from the official source.
• Complete the entry form as instructed.
• Ensure the form is duly filled out and countersigned by an authorized official from the sponsoring insurer.

Skills Required to Become LIC Agent in India

Once the interview is conducted in the initial phase of the selection process, a 25-hour training is conducted for overall skill development. An LIC agent requires the following skill set,

• Customer Service Skills: Crucial for a company's reputation, insurance agents need skills like proactive customer connection, problem-solving, customization, and human interaction.
• Sales Skills: Vital for meeting targets, insurance agents require negotiation, product knowledge, active listening, relationship-building, and self-confidence to suggest suitable coverage and boost sales.
• Communication Skills: Essential for client interactions, insurance agents must excel in verbal and non-verbal communication to understand customer needs, explain policies, and gather information accurately.
• Financial Planning Skills: Beneficial for understanding client concerns, insurance agents who grasp financial planning concepts can improve sales, build loyalty, and recommend better solutions across various income levels.

How to Become LIC Agent: Application Process

Today, numerous young individuals wonder how to become LIC Agent. They are choosing to become LIC Agents due to the flexibility in their working hours. Let us now delve into the steps one needs to follow to become an LIC agent:

• Reach out to the nearest LIC branch office and arrange a meeting with the Development Officer. Ensure you have the necessary documents in hand.
• Fill out the application form for LIC Agent Recruitment carefully and submit it along with the necessary documents.
• The Development Officer will conduct an interview to evaluate your suitability for the role. Successful candidates who pass this stage will proceed to the next step.

Documents Required to Become LIC Agent

How to become LIC agent also includes submitting the necessary documents. Candidates must ensure that they have the following documents on hand to complete the LIC agent application form:

• Six passport-sized photographs,
• A photocopy of your 10th standard Marks Sheet,
• Address proof, which can be provided in the form of a voter ID card, Aadhar card, driver's license, or PAN card.

Eligibility to become LIC Agent

The question of ‘how to become LIC agent’ also includes meeting the required eligibility criteria. In addition, one must note that the answer to both ‘How to Become LIC Agent after 12th?’ and ‘How to Become LIC Agent after Graduation’ remains the same. Individuals must pass the LIC Agents' pre-licensing examination administered by the Insurance Regulatory and Development Authority of India (IRDA). The requirement to be eligible for the test aspiring candidates must meet the following eligibility criteria:

Education Qualification to Become LIC Agent

The minimum education qualification required is that the candidates should have completed their 10th-grade education from a recognized educational board.

Age Requirement for LIC Agent

As per the stipulated guidelines, candidates must be at least 18 years of age to be eligible for participation in the LIC Agents' pre-licensing test.

These two essential criteria are fundamental steps in the process of becoming an LIC Agent, as they ensure that candidates have attained a minimum level of education and maturity necessary for this profession. Successfully meeting these prerequisites allows individuals to pursue their aspirations of joining the insurance industry as authorized LIC Agents.

Types of Job Roles LIC Agent

There is a myriad of job roles and types of LIC agents, but these can be categorized primarily into the following:

Captive Agents

They are exclusively affiliated with a single insurance company, representing its products and services to potential clients. On the other hand, independent insurance agents, or brokers, work with multiple insurance companies, enabling them to provide clients with a diverse range of options. Their goal is to match clients with the insurance company that offers the most competitive rates and comprehensive coverage.

Insurance Agents

 Regardless of their affiliation, insurance agents perform various essential tasks, such as preparing reports, maintaining records, actively seeking new clients, and assisting policyholders in settling their insurance claims in the event of a loss. Additionally, some agents are expanding their services to include financial analysis and advice to help clients minimize risk effectively. Insurance sales agents specialize in selling various types of insurance, including property and casualty, life, health, disability, and long-term care coverage.

Property and Casualty Insurance Agents

These agents concentrate on policies that safeguard individuals and businesses from financial losses caused by events like automobile accidents, fires, thefts, storms, and other incidents that can result in property damage. In the case of businesses, these agents can also facilitate coverage for worker's compensation, product liability claims, or medical malpractice claims.

Life Insurance Agents

They have the expertise in selling policies that provide benefits to beneficiaries upon the policyholder's death. These policies can be customized, depending on the policyholder's needs, to offer benefits such as retirement income, funds for children's education, and more. Life insurance agents may also offer annuities, promising a source of income during retirement.

Health Insurance Agents

These agents specialize in selling health insurance policies that cover medical expenses and income loss due to illness or injury. They may also offer dental insurance and both short- and long-term disability insurance policies to meet their client's diverse needs.

Pay Scale/Salary of LIC Agent

There is not a fixed salary for LIC Agent per se. LIC agents receive their earnings based on commissions earned from new policy sales and renewals of existing policies. Additionally, LIC provides a commission structure that begins with 25% to 35% of the policy premium for the initial year, followed by 7.5% for the second and third years, and an additional 5% commission until the policy reaches maturity.

The commission percentages can vary significantly depending on the specific policy type and the agent's club affiliation. In addition to commissions, LIC agents may benefit from festival advances, allowances for furniture, and reimbursements for mobile and telephone expenses. The company also provides various financial and non-financial rewards to recognize the performance of individual agents. Furthermore, agents are entitled to gratuity, and they continue to receive recurring income through renewal commissions even after they retire.

Benefits of Becoming LIC Agent

Aside from attractive commission structures and flexible working hours to comprehensive training and exclusive loan privileges, becoming a LIC agent provides the potential for unlimited income. Additionally, LIC agents also have the chance to receive accolades for outstanding performance. Listed below are the various benefits of becoming a LIC agent,

• 35% Commission on 1st-year Premium: LIC agents receive a 35% commission on the first-year premium, followed by 7.5% for the second and third years, along with an additional 5% commission until the policy reaches its conclusion.
• Flexible Working Hours: You can work part-time or full-time according to your convenience. You even have the option to combine your agent role with your existing job, providing you with complete work flexibility.
• Exclusive Loan Benefits: As an LIC Agent, you're eligible for interest-free (0% Interest) loans to purchase a laptop, housing loans with attractive interest rates ranging from 5% to 7.5%, and appealing options for two and four-wheeler loans.
• Comprehensive Training and Recognition: LIC agents receive comprehensive training under the guidance of a LIC Development Officer to enhance their skills and excel in their career. Additionally, top-performing agents are eligible for annual awards in recognition of their outstanding performance.
• Gratuity of up to 2 Lakhs + Full Medical Coverage: LIC agents are entitled to receive gratuity benefits and comprehensive medical coverage from LIC.
• Unlimited Income Opportunities: There's no upper limit to an LIC agent’s income, and exceptional agents can even become members of the Million Dollar Round Table, a prestigious global forum that honors the world's most successful Insurance Agents.