What is an Insurance Agent?

Insurance agents are specialised professionals who excel in various insurance policies, including life insurance and health insurance. Insurance agents are your trusted advisors, helping you simplify complexities, assess your unique needs, and thus secure the best policy to protect your bright future.

What Does an Insurance Agent Do?

Many ask what does an insurance agent do. Do they only sell policies? Do they collect premiums and share company receipts? Do they approach you each year with a new policy?

In reality, insurance agents wear many hats. They become your support or Life Mitra when you want to buy insurance. An insurance agent's primary role is to understand your financial goals and risk tolerance. They also recommend policies tailored to your specific needs. However, their role doesn't end there.

Insurance agents assist with tasks that most customers wish to avoid undertaking. They help with all paperwork to ensure smooth policy issuance for their clients. They also provide support and various services during the entire policy period and even beyond, i.e. to the policyholder’s beneficiaries.

The profession of insurance agent has been around for a long time. Today, they are licensed and regulated by the industry watchdog IRDAI. This legal recognition ensures that insurance agents comply with rules for ethical practices and possess the required expertise to serve you in the best manner possible. After all, they play a very important role in the insurance industry.

Why Do You Need an Insurance Agent?

Every insurance company has different products. This includes term insurance, health insurance, motor insurance, etc. Now, multiply the number of products and imagine the hassle of finding a suitable policy for yourself. Additionally, complex jargon makes it easy for potential customers to get lost in the legalese. An insurance agent significantly simplifies this process. They explain the various nuances of different policies and policy riders and help you compare premiums. When all this is done professionally, agents can guide you towards a decision that aligns with your budget and future aspirations.

Moreover, insurance agents offer personalised services. Over the years, agents build deep relationships with their clients by understanding their unique circumstances. This gives agents a solid overview, enabling them to offer solutions accordingly. This human touch, especially in a world dominated by mobile and gadget screens, can make a world of difference for customers.

Is It Cheaper to Buy Insurance Online or Through an Agent?

The definition of cheap or inexpensive often concerns lower costs. Yet, insurance should never be about the lowest-priced offering. There are so many layers of dealing with insurance and low costs can be a misleading way to base your purchase on. Buying online might seem convenient and potentially cheaper, too, due to lower overheads for the insurer. However, an agent's expertise and personalised service can do a world of good, especially when it comes to life insurance.

Agents understand your needs, leading to a more suitable policy decision in the long run. At the end of the day, all agents want a happy customer, which also means an increase in potential future sales. This drive to ensure a delightful customer experience is unique to agents. It's often not about a transaction but a relationship regarding agents. Ultimately, the choice is yours. Consider your comfort level with researching and comparing policies online alone versus the reassurance of having an expert guide you.

Insurance customers, especially those who are new, must also account for mistakes they can make while buying insurance online alone. Apart from unknown or trivial mistakes, they can potentially misunderstand things about a policy. This can turn into a very costly error in the long run. A good insurance agent limits the scope and occurrence of such grave errors.

What Makes a Good Insurance Agent?

Many view insurance agents as persons with a promising career and stable incomes. So, many youngsters and experienced professionals who aspire to be agents often wonder: What do you need to become an insurance agent?

While salesmanship is the buzzword, a good insurance agent is more than just a salesperson. They're trustworthy advisors for whom customer financial well-being reigns supreme. You can look for agents who are patient, listen attentively to your concerns, and explain things clearly. They should be knowledgeable about various insurance products and regulations because even small changes can mean big differences in the long term.

There are three things that a good agent will exhibit:

• They will proactively follow up with you on key matters.
• They will update you on policy changes.
• They will assist you with claims.

Trust your instincts and choose an agent you feel comfortable with. Build a preference for agents who genuinely have your best interests at heart.

Bottom Line

Becoming an insurance agent in India is relatively easy. You must be 18 years old, have a 10th-grade education, and a PAN card. Once you complete the mandatory training and certification programme by IRDAI, you can apply for an insurance agent license from IRDAI using the required documents.

Agents, including life insurance agents, offer expertise, personalised service, and invaluable ongoing support. Buying the right insurance is an investment that helps you achieve your financial goals. In that sense, insurance agents are the people who can guide you on this path, and choosing the right type of agent can help you achieve that.

Faqs

What’s the Role of an Insurance Agent?

An insurance agent carries out some important tasks.

• They assess your needs.
• They recommend suitable policies.
• They assist with paperwork and claims.
• Insurance agents provide ongoing support.

How Do I Know If I’m Getting the Best Price on My Insurance Policy?

To ensure you are getting the best price, compare premiums from various insurers. Consider policy features and benefits so that you can make apples-to-apples comparisons. Don’t forget to talk with an insurance agent for expert advice.

What’s the Difference Between an Insurer and an Insurance Agent?

An insurance agent is a professional who represents the insurer and sells its policies. The agent acts as a link between the customer and the insurer.