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Insurance Agent Career Information

An insurance agent comes into our lives like the charming, gallant saviour of fairy tales, to help us combat all the imminent demons in our path-way. An insurance agent acts as our life-buoys, helping us to stay afloat even amidst an unprecedented storm of circumstances.

What an Insurance Agent does

Abilities & Traits Required


For insurance agency jobs, most companies and independent agencies prefer to hire college graduates-particularly those who have majored in business or economics. A few hire high school graduates with proven sales ability or who have been successful in other types of work. In selling commercial insurance, technical experience in a field can be very beneficial in helping to sell policies to those in the same profession.

Courses to be opted for are finance, mathematics, accounting, economics, business law, marketing, and business administration, which enable insurance sales agents to understand how social and economic conditions relate to the insurance industry.

Courses in psychology, sociology, and public speaking can also prove useful in improving sales techniques. In addition, familiarity with computers and popular software packages has become very important, as computers provide instantaneous information on a wide variety of financial products and greatly improve agents' efficiency.

Insurance sales agents must obtain a license in the States where they plan to sell insurance. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most States, licenses are issued only to applicants who complete specified pre-licensing courses and pass State examinations covering insurance fundamentals and State insurance laws.

Before agents can qualify as securities representatives, they must pass the General Securities Registered Representative Examination (Series 7 exam), administered by the National Association of Securities Dealers (NASD). To further demonstrate competency in the area of financial planning, many agents also find it worthwhile to obtain a Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) designation.


The median annual earnings of wage and salary insurance sales agents are Rs 400000 – 600000. The middle 50 percent earn between Rs 200000 – 400000.

The lowest 10 percent earn Rs 100000 or less, while the highest 10 percent can earn more than Rs 500000 p a.

Median annual earnings in the industries employing the largest number of insurance sales agents are:

Fire, marine, and casualty insurance Rs 400000 Medical service and health insurance Rs 300000 Insurance agents, brokers, and service Rs 350000 Life insurance Rs 450000

Many independent agents are paid by commission only, whereas sales workers who are employees of an agency or an insurance carrier may be paid in one of three ways - salary only, salary plus commission, or salary plus bonus.

In general, commissions are the most common form of compensation, especially for experienced agents. The amount of commission depends on the type and amount of insurance sold, and whether the transaction is a new policy or a renewal.

Bonuses usually are awarded when agents meet their sales goals or when an agency's profit goals are met. Some agents involved with financial planning receive a fee for their services, rather than a commission. Company-paid benefits to insurance sales agents usually include continuing education, paid licensing training, group insurance plans, and office space and clerical support services.

Some may pay for automobile and transportation expenses, attendance at conventions and meetings, promotion and marketing expenses, health insurance and retirement plans. Independent agents working for insurance agencies receive fewer benefits, but their commissions may be higher to help them pay for marketing

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