Life Insurance Corporation of India (LIC) is the largest and most trusted insurance company in the country. It offers a range of products and services to cater to the diverse needs of its customers. LIC agents are the backbone of the company, who help people secure their future and achieve their financial goals. Becoming an LIC agent is a rewarding career option that offers many benefits and opportunities. In this article, we will guide you through the steps and requirements to become an LIC agent.
Benefits of Becoming an LIC Agent
Becoming an LIC agent has many perks, and some of them are:
- Rewarding Career: You will help people realize their dreams by fulfilling their financial goals. The difference you make to their lives is more rewarding and satisfying than you could ever imagine.
- A Successful Team: By joining LIC, you will be a part of the country’s finest team of life insurance agents. In the year 2015, LIC contributed 4021 members to the Million Dollar Round Table: a global forum that salutes the world’s most successful insurance agents.
- Attractive Remuneration: LIC offers one of the best remuneration systems in the industry that not only takes care of your current earnings, but also guarantees an earning for the future. What’s more, you can set your own income targets with a potential to earn as much as you want for the rest of your life.
- Independence: As an agent, you will be a true entrepreneur. You have the freedom to be your own boss: work for yourself, choose your own clients and make your own money. All of this, without your having to make any initial capital investment.
- World-Class Training: LIC provides you with the best-in-class training systems, since that is what differentiates LIC agent from the rest. Even if you don’t have previous experience in selling, our multi-dimensional training program conducted by our qualified in-house training personnel, will make you a specialist in life insurance sales.
- Commitment & Support: LIC’s commitment to the career agency system means that, we support you and your efforts not just today, but at every stage of your business. We believe in encouraging our agents to strive towards the highest levels of success, throughout their careers. In fact, depending on your performance, we also offer a management career option with the company.
- Infrastructure & Tools: LIC has invested in creating a state-of-the-art infrastructure at each of its branch offices. You will have access to the necessary tools, technology and people support that will enable you to build a profitable long-term business.
- Diverse Product Range: You can offer your customers over 50 product combinations of our unique products and riders, to help them meet all their financial goals. In order to give you a greater competitive edge, we are also continuously working on newer and more innovative products.
- Sales & Marketing Support: LIC supports its agents with innovative sales and marketing tools. The sales, promotions and marketing collaterals that we provide will help you take your business to new heights.
- Financial Strength: LIC offers you and your customer unmatched financial strength and solidity.
Eligibility Criteria
To become an LIC agent, you need to meet the following eligibility criteria:
- You should have cleared the 10th standard examination from a recognized board.
- You should be at least 18 years old.
- You should be physically fit and mentally sound.
- You should be a citizen of India and have good moral character.
The Application & Selection Process
The application and selection process for becoming an LIC agent involves the following steps:
- Contact the nearest LIC branch in your city and get in touch with the development officer. You can also fill the online application form on the official LIC website and wait for the development officer to contact you.
- Clear the interview conducted by the branch manager.
- Complete the Insurance Regulatory and Development Authority of India (IRDAI)- mandated training (duration: 25 hours) at the divisional or agency training center.
- Pass the pre-recruitment examination (IC38) conducted by IRDAI with a minimum of 35% score or at least 18 correct answers out of 50.
- Obtain the appointment letter and agent license from LIC to start working.
Training & Onboarding
LIC offers various training programs for its agents to equip them with the necessary knowledge and skills for selling insurance policies. The training programs are:
- Pre-recruitment training: This is a mandatory training program that covers all aspects of life insurance business, such as products, regulations, instruments, applications, etc. The duration of this training is 25 hours and it is conducted at the divisional or agency training centre before appearing for the examination.
- Induction training: This is an orientation program that introduces new agents to LIC’s culture, values, vision and mission. It also covers topics such as communication skills, customer service, sales techniques, etc. The duration of this training is 15 days and it is conducted at the branch office after obtaining the license.
- Field training: This is a practical training program that provides hands-on experience to the agents in selling insurance policies. It involves accompanying senior agents or development officers to meet potential customers and learn from their interactions. The duration of this training is 30 days and it is conducted at the field level after completing the induction training.
- Refresher training: This is a periodic training program that updates the agents on the latest developments and changes in the insurance industry. It also helps them to refresh their knowledge and skills and learn new techniques and strategies. The duration of this training is 3 days and it is conducted at the branch office every year.
Roles & Responsibilities of an LIC Agent
As an LIC agent, you will have the following roles and responsibilities:
- Informing potential clients about LIC’s insurance policies and services and encouraging them to invest in them.
- Maintaining good relations with existing clients and establishing a good rapport with new prospects.
- Conducting market research and analysis to identify new opportunities and customer needs.
- Preparing and presenting proposals and quotations to customers and closing sales deals.
- Collecting premiums from customers and issuing receipts and policy documents.
- Providing after-sales service and support to customers and resolving their queries and complaints.
- Helping customers in filing claims and processing settlements.
- Maintaining records and reports of sales activities and performance.
- Attending training programs and meetings organized by LIC or IRDAI.
- Abiding by the code of conduct and ethical standards of LIC and IRDAI.
Career Growth & Opportunities
LIC offers various career growth and opportunities for its agents, depending on their performance and potential. Some of the possible job profiles within LIC are:
- Development Officer: A development officer is responsible for recruiting, training, motivating and supervising a team of agents. They also monitor their sales performance and provide them with guidance and feedback. A development officer can be promoted to higher positions such as assistant branch manager, branch manager, divisional manager, etc.
- Financial Service Executive: A financial service executive is responsible for marketing LIC’s products and services to corporate clients, banks, institutions, etc. They also provide financial planning and advisory services to customers. A financial service executive can be promoted to higher positions such as senior financial service executive, zonal manager, etc.
- Direct Sales Executive: A direct sales executive is responsible for selling LIC’s products directly to customers without involving any agents. They also generate leads and referrals from various sources. A direct sales executive can be promoted to higher positions such as senior direct sales executive, area manager, etc.
Apart from these job profiles, LIC also offers various benefits and perks to its agents, such as:
- Gratuity: A lump sum amount paid to an agent on completion of 15 years of service or retirement or death, whichever is earlier.
- Term Insurance: A life insurance cover provided to an agent at a nominal premium rate.
- Group Insurance: A life insurance cover provided to an agent along with other benefits such as accidental death benefit, disability benefit, etc.
- Medical Insurance: A health insurance cover provided to an agent along with other benefits such as hospitalization benefit, maternity benefit, etc.
- Pension Scheme: A retirement benefit scheme that provides a monthly pension to an agent after attaining the age of 60 years or completing 20 years of service, whichever is later.
- Group Personal Accident & Disability Scheme: A scheme that provides compensation to an agent in case of accidental death or disability due to an accident.
- Sponsorship to National & International Conventions: An incentive scheme that rewards an agent for achieving certain sales targets by sponsoring them to attend national or international conventions organized by LIC or other associations.
- Allowances & Advances: Various allowances and advances provided to an agent for meeting their expenses related to office maintenance, furniture, utility bills, festival/marriage, office equipment, car/bike purchase, laptop/computer purchase, etc.
- Housing Loan: A loan facility provided to an agent for purchasing or constructing a house at concessional interest rates.
Frequently Asked Questions
Here are some frequently asked questions about becoming an LIC agent:
Q: What is the difference between LIC and other insurance companies?
A: LIC is a public sector undertaking owned by the Government of India. It has a monopoly in the life insurance sector in India. It has a wide network of branches, agents and customers across the country. It offers a variety of products and services that cater to different segments of society. It also contributes to various social welfare schemes initiated by the government.
Q: What are the working hours of an LIC agent?
A: There are no fixed working hours for an LIC agent. You can work as per your convenience and availability. However, you need to maintain regular contact with your clients and prospects. You also need to attend training programs and meetings organized by LIC or IRDAI from time to time.
Q: How much can I earn as an LIC agent?
A: The amount of income you can earn as an LIC agent depends on various factors, such as the number and type of policies you sell, the premium amount you collect, the commission rate you receive, the incentives and bonuses you qualify for, etc. As a general rule, the more policies you sell and the more premium you collect, the more income you can earn. LIC offers one of the best commission rates in the industry, ranging from 5% to 35% of the premium amount. You can also earn renewal commission for the subsequent years, ranging from 2% to 7.5% of the premium amount. Additionally, you can earn various incentives and bonuses based on your performance and achievements. Some of these are:
- Hereditary Commission: A commission paid to your legal heirs in case of your death, as long as they continue to service your policies.
- Club Membership: A scheme that provides various benefits and facilities to agents who achieve certain sales targets. There are different clubs, such as Distinguished Club, Branch Managers’ Club, Divisional Managers’ Club, Zonal Managers’ Club, etc., each with its own eligibility criteria and benefits.
- MDRT/COT/TOT Membership: A scheme that recognizes agents who achieve certain levels of sales and income in a year. MDRT stands for Million Dollar Round Table, COT stands for Court of the Table, and TOT stands for Top of the Table. These are global forums that salute the world’s most successful insurance agents. LIC sponsors its agents to attend these conventions and provides them with various rewards and recognition.
To give you an idea of how much you can earn as an LIC agent, here is a table that shows the approximate annual income for different levels of sales and commission:
| Number of Policies Sold | Average Premium Amount | Commission Rate | Annual Income |
|---|---|---|---|
| 100 | Rs. 10,000 | 25% | Rs. 2,50,000 |
| 200 | Rs. 10,000 | 25% | Rs. 5,00,000 |
| 300 | Rs. 10,000 | 25% | Rs. 7,50,000 |
| 400 | Rs. 10,000 | 25% | Rs. 10,00,000 |
Note: The above table is only for illustrative purposes and does not include renewal commission or other incentives and bonuses.
The Bottom Line
Becoming an LIC agent is a great way to start your own business without any initial investment or risk. You will enjoy a flexible and independent work environment, a lucrative and stable income, a prestigious and respected career, and a chance to make a positive difference in people’s lives. If you are interested in becoming an LIC agent, don’t wait any longer. Contact your nearest LIC branch today and take the first step towards a bright future.
