How to Become an Insurance Agent | Steps, Eligibility & Salary (Full Guide 2025)

The insurance industry in India is expanding rapidly, driven by digital adoption, financial awareness, and the rising need for protection products like health, life, motor, and travel insurance. This growth has opened the doors to one of the most stable and rewarding professions today—especially for those exploring how to become insurance agent and build a long-term, successful career in the insurance sector.

Whether you are a student seeking flexible income, a homemaker looking for a part-time opportunity, a working professional wanting to boost earnings, or someone aiming for a long-term career, insurance distribution offers unlimited potential. With low entry barriers, high commissions, and strong demand, the role of an insurance agent continues to be one of the most sought-after career opportunities.

In this detailed guide, you’ll learn how to become an insurance agent, eligibility criteria, step-by-step registration, income potential, required skills, and the benefits of entering this booming sector.

What Does an Insurance Agent Do?

An insurance agent acts as a licensed professional who helps individuals and businesses purchase suitable insurance policies. They represent either an insurance company or multiple insurers, depending on the license type.

Key responsibilities include:

• Understanding customer needs and recommending the right insurance plans
• Generating leads and building long-term client relationships
• Explaining policy features, benefits, and exclusions
• Helping clients with documentation, renewal, and claims support
• Ensuring compliance with IRDAI regulations

Insurance agents play a crucial role in improving insurance penetration and helping families stay financially protected.

Who Can Become an Insurance Agent? (Eligibility Requirements)

The Insurance Regulatory and Development Authority of India (IRDAI) sets the rules for becoming an agent.

Basic eligibility criteria:

• Age: Minimum 18 years
• Education: At least 10th pass (for rural areas) and 12th pass (for urban areas)
• KYC documents: Aadhaar, PAN card, address proof, and bank details
• Training: Mandatory IRDAI training (15 hours for most categories)
• Exam: Must clear the IRDAI licensing exam

No prior experience is required, making it accessible to anyone.

How to Become an Insurance Agent: Step-by-Step Process

Here is the complete step-by-step guide to becoming a certified insurance agent in India.

Step 1: Choose the Type of Insurance Agent You Want to Become

You can become:

1. Life Insurance Agent – Sells life insurance, term plans, ULIPs, retirement plans, etc.
2. General Insurance Agent – Sells motor, health, home, travel, and other non-life policies.
3. POSP Insurance Agent (Point of Sales Person) – Sells simplified and high-demand products like motor, health, travel, and personal accident insurance with minimal training.

POSP is the most popular choice today due to its flexibility and ease of onboarding.

Step 2: Register With an Insurance Company or an Online Insurance Platform

You must partner with a registered insurer or licensed intermediary to start the licensing process.

During registration, you must submit:

• Aadhaar
• PAN
• Address proof
• Photo
• Qualification documents

Most companies now allow online registration, making the process quick and paperless.

Step 3: Complete IRDAI-Mandated Training

Once registered, you must undergo 15 hours of training conducted online or offline.

The training covers:

• Basics of insurance
• Regulations and ethics
• Product knowledge
• Sales practices
• Claims process

This ensures you understand the fundamentals before advising customers.

Step 4: Clear the IRDAI Licensing Exam

After training, you must pass the IRDAI exam.

Exam details:

• MCQ format
• Basic insurance concepts
• Passing marks: 35%
• Conducted online

Once you clear the exam, you become eligible to receive your license.

Step 5: Receive Your License & Start Selling Insurance

Upon passing, IRDAI issues your insurance agent license, allowing you to:

• Sell policies
• Earn commissions
• Build your customer base
• Provide renewal and claims support

You can work independently or partner with multiple platforms for better earning opportunities.

Skills Needed to Become a Successful Insurance Agent

While the eligibility criteria are simple, successful agents typically possess:

• Good communication skills
• Strong networking abilities
• Basic financial knowledge
• Customer handling skills
• Persistence and dedication
• Digital literacy

These skills help build trust and long-term relationships with clients.

How Much Can You Earn as an Insurance Agent in India?

Insurance agents earn mainly through commissions, which vary by product.

Typical commission range:

• Life Insurance: 20%–35%
• Health Insurance: 15%–25%
• Motor Insurance: 10%–15%
• Travel & Other Insurance: 10%–20%

Top-performing agents can earn:

• ₹30,000–₹50,000 per month (part-time)
• ₹1 lakh–₹3 lakh per month (full-time)
• Additional bonuses and incentives

The earning potential increases as you build a larger client base.

Benefits of Becoming an Insurance Agent

•     Low Investment, High Income Opportunity

No large capital or office space is needed.

•        Work Flexibly From Anywhere

Sell policies online, in-person, or remotely.

•       Long-Term Income Through Renewals

Earn commissions every year when clients renew.

•     Recession-Proof Career

Insurance remains in demand regardless of market conditions.

•        Opportunity to Help People

You guide families toward financial protection and security.

Why This Is the Best Time to Start Your Insurance Agent Career

• India has one of the fastest-growing insurance markets globally
• Digital platforms make policy sales easier
• More people are buying online
• Government-backed schemes are expanding
• Rising healthcare and financial risks increase insurance demand

This makes now the perfect time to build a stable and respectable career.

Conclusion

Becoming an insurance agent in India is one of the easiest and most rewarding career choices, especially in today’s digital era. With low entry barriers, flexible working options, higher commissions, and long-term income potential, thousands of people are choosing this profession every year.

If you want to build a stable, respected, and high-income career while helping people secure their financial future, the insurance agent career is the perfect opportunity.

Frequently Asked Questions

Q.1. What is the minimum qualification to become an insurance agent?
You need to be at least a 10th pass in rural areas and a 12th pass in urban areas.

Q.2. What is the age limit to become an insurance agent?
You must be 18 years or older to apply.

Q.3. How long is the IRDAI training?
The mandatory training is 15 hours for most agent categories.

Q.4. Can I become a part-time insurance agent?
Yes, you can work part-time or full-time depending on your convenience.

Q.5. Is becoming an insurance agent profitable?
Yes, agents earn attractive commissions, renewal income, bonuses, and incentives.