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The Best Way to Work in the Life Insurance Companies

Lan Bell Lan Bell , 8/26/2018
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There are 24 life insurance companies in India offering various kinds of life insurance policies as per the needs of customers. In an insurance industry, the policy advisor or agent will play an important role. The agent acts like a bridge between the insurance company and the policyholder. The insurance company will pay commission for the sales generated by the agent. There is no limit on the earnings of an insurance agent. If an insurance advisor can understand the requirements of customers, it is possible to sell the most appropriate insurance policies to fulfill their needs.

The working of a life insurance company

You might wonder about the working of the life insurance companies. Every year, an insurance company should deal with a number of insurance claims. The total value of claims paid to customers and operational expenses should be less than the total premium value collected in a financial year. If the total value of claims increases the insurance company will revise the premium for the coming years. Hence, the new customers are prone to pay a higher insurance premium.

However, the insurance company will work under the guidelines of the IRDAI (Insurance Regulatory Development Authority of India). There will be a maximum ceiling on the insurance premium that can be collected by an insurance company to cover a specific risk factor.


Role of an insurance advisor

A life insurance advisor will play various kinds of roles in delivering the goods of the insurance company.

Promotion of products – The insurance company introduces new products and promotes existing products to prospective customers


Financial advice – The best financial advice will be given to customers as per their needs

Customer support – The customer’s issues will be addressed by the insurance company with the active lead taken by the insurance agent


Should deal with individuals and families – The insurance agent should deal with individuals and their families in convincing the necessity of buying an insurance policy


Maintains rapport –The insurance advisor will maintain rapport with the existing customers as well as prospective customers


Market awareness – The insurance agent should have up-to-date market knowledge about the market so that he/she can deal with clients in a very efficient manner. There will not be a necessity of hard sell when the insurance agent manages broad knowledge of the market.

Implementation of the roadmap – The roadmap designed by the top brass of the insurance company should be implemented by the insurance agents in a very efficient manner

Marketing strategies – New and innovative marketing strategies should be implemented as per the change in lifestyle or behavioral changes in customers

Aggressive business development strategy – The insurance agent/advisor should implement an aggressive business development strategy to generate sales in a very efficient manner.

Customer satisfaction

Advising the right policy – The insurance agent should advise the right policy as per the needs of the customer. A right kind of policy need not be a policy with the lowest premium and highest sum assured. It is a policy which delivers the future financial needs of the policyholder keeping in view of the current financial status. Hence, the insurance agent should sell the most appropriate policy to fulfill the needs of the customer.

Term insurance policy

An insurance agent can sell a term insurance policy very easily among the educated public. However, there will be difficulty in explaining the need for a term plan to illiterate people. Some people would not want to lose money without getting the benefit.

Insurance policy with savings

Insurance agents can introduce endowment or money back insurance policies if customers insist upon financial benefits associated with the term plan. A term plan will not give yield unless the policyholder dies. The endowment or savings plan comes with a survival benefit. Hence, the policyholder will be able to get some money after the policy term as per the terms and conditions of the insurance policy.

Conversion capability

An insurance agent should be smart enough to translate inquiries into sales. The agent should have the capability and skill to understand the objections raised by prospective customers. Fitting replies will certainly address those objections and it is possible to win customers.

Customer-first strategy

The insurance agent should implement the customer-first strategy. While selling insurance products, the right kind of policy should be suggested to the customer. The policy should deliver maximum benefits to the customer and the agent should not resort to mis-sell a product in anticipation of a higher commission from the insurance company.

Independent insurance agent

An independent insurance agent will share unbiased information as the agent will get a commission from the sales directly from the insurance company. The agent presents multiple products and the customer will be able to make an informed choice.

Insurance agent as a facilitator

The insurance agent should present the information requested by the customer. If the customer would like to go through the financial benefits of various kinds of products, the illustration should be provided in a transparent manner. The customer can make an informed choice about the purchase of an insurance policy.

Instant quotes

The insurance agent will be able to offer an instant quote by email. The customer can interact with an agent to get a customized insurance plan. The options which are not available on the official website can be exercised with the help of an agent.

LIC (Life Insurance Corporation of India)

LIC had insured more than 250 million people in India. LIC is the only public and the oldest life insurance company in India. The company has its headquarters in Mumbai. The asset value of the company is Rs. 25, 29, 390 crores as of 2016. The company was founded in 1956 and it delivers the operations through 8 zonal offices, 113 divisional offices, 2048 branches and 1408 satellite offices spread across the country.

There are more than 13 lakh insurance agents working in different parts of the country. The agents and the permanent staff of the company play an important role in the growth of the business.

Best insurance plans of LIC

LIC offers different kinds of insurance plans to fit into the needs of people from various walks of life.

The following plans can be considered in this direction:

LIC e-term plan

It is a pure term plan with maximum maturity age of 75 years. The policyholder should contribute premium on a regular basis.

·        Online application – You can subscribe to the plan online without going through an intermediary.

·        Differential premium rates – There are differential premium rates for smokers and non-smokers

·        Covers own life – The policy will be issued to cover the applicant’s own life

·        Death benefit – the nominee will get the financial benefit if the policyholder dies

·        Maturity benefit – No benefit is available to the policyholder after the end of the term

·        Minimum sum assured – Rs. 25 lakh for aggregate and Rs. 50 lakhs for non-aggregators

·        Min/max entry age – 18 & 60 years

·        Policy term – 10 years to 35 years

·        Mode of premium – premium payment on an annual basis

LIC Jeevan Mangal Plan

It is a term plan with return of premium upon the maturity.

·        Premium payment – The premium payment can be done in a lump sum or in installments

·        In-built accident benefit – If the policyholder dies in an accident, the nominee will get 2 times of sum assured.

·        Death benefit – differential death benefit for single premium plans and regular premium plans

·        Maturity benefit – If the policyholder survives after the term, the sum equal to the premium paid by the policyholder will be paid as maturity benefit.

LIC New Children’s Money Back Plan

It is a traditional money back child plan with maximum maturity age of 25 years

·        Minimum premium – Rs. 24, 000

·        Maximum sum assured – Rs. 1 lakh

·        Entry age – 0 to 12 years for children and 18 to 55 years for parent/guardian

·        Profit participation – The policy is eligible for participation in the profits of the company and hence, the bonus will be paid to policyholders

·        Survival benefits – Payable at 18/20/22 years of the life insured child

·        Deferment of survival benefits – The policyholder can defer the survival benefits within the policy term

·        Maturity benefit – 40% of the sum assured, vested reversionary bonus and final vested bonuses (if applicable) will be paid to the policyholder

·        Premium waiver rider – The child’s interests are protected when the parent expires before the policy term. The remaining premiums will be paid by the insurance company

·        Rebate on premium -  A rebate at 2% and 1% is applicable for annual and semi-annual payment of insurance premium

·        Income tax benefit – The insured will get income tax exemption on the premium paid towards the insurance policy under Section 80C and the returns are exempt from the tax under Section 10 (10D).

LIC Jeevan Anand

It is a traditional participating endowment policy with a maximum maturity age of 75 years.

·        Profit participation – yes

·        Survival benefits – At the end of the policy period, sum assured plus additional bonuses will be paid to the policyholder.

·        Accidental death & disability rider – If there is accidental death additional financial benefit will be offered to the nominee. Similarly, the disability due to the accident will offer an additional payout to the policyholder. The rider is optional.

·        Minimum sum assured – Rs. 1 lakh

·        Maximum sum assured – no limit

·        Min/max entry age – 18 and 50 years

·        Maximum maturity age – 75 years

·        Policy term – 15 years (min) and 35 years (max)

LIC Jeevan Akshay

It is an immediate annuity plan which can be purchased by a person whose age is in between 30 years and 85 years.

·        Minimum contribution – The minimum contribution is Rs. 1 lakh (offline) and Rs. 1.5 lakh offline

·        Maximum purchase price – no limit

·        Minimum pension payment – Rs. 7190 per annum will be paid by the insurance company for every one lakh of annuity subscription.

·        Medical examination – No medical examination is required to subscribe to the annuity plan

·        Fixed returns – The insurance policy will deliver fixed returns without any risk

·        Multiple options – There are 7 different options which can be selected as per the needs of the policyholder.

·        Annuity with lifelong payment at a fixed rate

·        Annuity for a specific term (5/10/15/20) guaranteed and as long as the policyholder is alive

·        Annuity for life with return of premium after the death of the customer

·        Annuity for life and 50% of annuity to the nominee after the death of the policyholder throughout the nominee’s lifetime

·        Annuity for life and 100% of annuity to the nominee after the death of the policyholder throughout the nominee’s lifetime

·        Annuity for life and 50% of annuity to the nominee after the death of the policyholder throughout the nominee’s lifetime with the return of purchase price after the death of the last survivor

·        Annuity for life with an increase of 3% interest per annum

Benefits of LIC life insurance policies

·        A wide range of products – There are various kinds of insurance policies offered by the insurance company. In addition to insurance plans, you can choose pension plans, unit plans, micro insurance plans and health plans.

·        Online services – The website, www dot licindia dot in offers comprehensive information about vivid insurance plans. You can understand policy features, benefits and eligibility. The most appropriate policy can be picked-up as per your needs.

·        Online payment – The insurance premium can be paid online with or without registration on the website. If you register your profile on the website, you can add all your insurance policies and the status of various policies can be tracked very easily.

·        Customer support – The insurance company can be reached by phone, email and the physical visit to the nearest office of the LIC.

·        Claim settlement – The Company offers quick information to facilitate the claims by policyholders or nominees.

Conclusion

You can buy an insurance policy to protect your life and to deliver financial benefit to your dependents. There is an individual, as well as group policies, which can be selected as per your needs. You can approach an agent by online or offline to get more information about a life insurance plan!