How to Earn Income on Selling Insurance Policies in India
Selling insurance policies in India is not just a job—it’s a rewarding career and a great way to earn a steady income. Whether you want to work full-time or part-time, becoming an insurance agent or broker gives you the opportunity to earn through commissions, bonuses, and incentives. In this article, we’ll explain how you can start earning income by selling insurance policies in India and what steps are needed to get started.
What Does It Mean to Sell Insurance?
Selling insurance means helping people choose the right insurance policy that suits their needs—be it life insurance, health insurance, motor insurance, or any other. As an agent or broker, you earn a commission every time you sell a policy or renew one.
Who Can Sell Insurance in India?
You can sell insurance in India in two ways:
1. As an Insurance Agent
- You represent one insurance company (LIC, ICICI Prudential, HDFC Life, etc.).
- You earn commissions directly from that company.
- Need to pass the IRDAI agent exam and get a license.
2. As an Insurance Broker
- You are independent and can sell policies from multiple insurance companies.
- Earn commissions from different companies for different policies.
- Need to get an Insurance Broker License from IRDAI.
Difference Between Insurance Broker and Insurance Agent
An insurance agent and an insurance broker both help people buy insurance policies, but they differ in whom they represent and how they operate. An insurance agent works for a specific insurance company and sells only that company’s products. They act as a direct link between the insurance company and the customer, and their advice is usually limited to the policies offered by their company.
On the other hand, an insurance broker is an independent professional who does not work for any one company. Instead, they represent the customer and have access to a wide range of insurance companies and policies. This allows brokers to compare different products and offer the best options based on the client’s needs. In terms of licensing, brokers need to obtain an IRDAI Insurance Broker License, which involves more compliance and capital requirements compared to the simpler licensing process for agents.
How Do You Earn Income?
Your income depends on how many policies you sell and the type of insurance product. Here’s how the earning works:
| Type of Insurance | Commission (Approx.) | Renewal Commission |
|---|---|---|
| Life Insurance | 15% – 35% (1st year) | 2% – 7.5% |
| Health Insurance | 15% – 25% | 5% – 15% |
| General Insurance | 10% – 20% | 2% – 10% |
🤑 Example: If you sell a life insurance policy worth ₹1,00,000 with a 25% commission, you earn ₹25,000 in the first year.
Steps to Start Selling Insurance in India
Step 1: Choose Your Role – Agent or Broker
- If you want to start small or work part-time, become an insurance agent.
- If you want to build a business and sell all types of policies from various insurers, become an insurance broker.
Step 2: Register and Get Trained
- Take 15–50 hours of mandatory training (depending on the product).
- Training is offered by IRDAI-approved institutions or insurance companies.
Step 3: Pass the IRDAI Exam
- Conducted by the Insurance Regulatory and Development Authority of India (IRDAI).
- Basic questions on insurance products, regulations, and ethics.
Step 4: Get Your License
- Once you pass the exam, you’ll get a license to start selling policies.
Why Choose Insurance as a Career?
✅ Low Investment, High Return
✅ Work Flexibly – Full-time or Part-time
✅ Build Passive Income through Renewal Commissions
✅ Earn Rewards, Bonuses, and Incentives
✅ Help People Make Smart Financial Decisions
Want to Become an Insurance Broker?
If you’re planning to open your own insurance brokerage firm, you need to apply for an IRDAI Insurance Broker License. It involves more documentation and compliance but gives you full independence to grow your business.
📢 Need help with your broker license?
We recommend consulting Registrationwala – a trusted name for insurance broker license registration services across India.
Final Thoughts
Selling insurance policies in India can be a financially rewarding and satisfying profession. Whether you start as an agent or dream of building your own brokerage firm, the potential to earn is huge. All you need is basic training, a license, and the willingness to help people secure their future.
Also Read: How to Start a Packaging Business in India
