Insurance is one of the fastest-growing sectors in India, and with rising awareness, more people are investing in life, health, and motor insurance. This growth has also increased the demand for qualified and trustworthy insurance agents. If you want a stable career with unlimited earning potential, understanding How to Become an Insurance Agent in 2025 can be a smart and rewarding decision.

In this guide, you will learn who can become an insurance agent, the eligibility criteria, key responsibilities, required documents, step-by-step registration process, IRDAI exam details, salary expectations, and essential skills to grow your career.

Who Is an Insurance Agent?

An insurance agent is a trained and certified professional who sells insurance products to customers on behalf of insurance companies. Agents help buyers understand policies, assist in claim processes, and offer guidance based on their needs.

In India, insurance agents are licensed by the Insurance Regulatory and Development Authority of India (IRDAI).

Why Become an Insurance Agent in 2025?

Here are some major benefits that make this career highly attractive:

High earning potential – commission-based income with no upper limit Flexible working hours – perfect for students, freelancers, and job seekers Low investment – minimal cost to get certified Growing industry – increased demand after digitalization and awareness Work with top insurance companies – LIC, SBI, HDFC, ICICI, Star Health, etc. Opportunity to become a POSP Agent – Sell multiple insurance types such as motor, health, life, travel, and more Eligibility Criteria to Become an Insurance Agent in India (2025)

To qualify as an insurance agent, you need to meet the following requirements:

1. Age Requirement Minimum age: 18 years No upper age limit
2. Educational Qualification Minimum qualification: 10th pass (matriculation) In some states, the requirement may vary for rural areas
3. Basic KYC DocumentsYou will need: Aadhaar Card PAN Card Passport-size photographs Bank account details
4. IRDAI Certification

You must clear the IRDAI IC 38 exam to get your license.

Documents Required

Here’s the complete list:

Aadhaar Card PAN Card 10th/12th mark sheet Passport-size photos Cancelled cheque Address proof Signature on white paper

Make sure your documents are clear, updated, and valid.

Step-by-Step Process to Become an Insurance Agent in India (2025)

Becoming an insurance agent is simple, but you must follow the IRDAI-approved process. Here’s the step-by-step guide:

Step 1: Choose the Type of Insurance Agent

You have two options:

Company Insurance Agent You represent one company (e.g., LIC, SBI Life, Star Health). POSP Insurance Agent You can sell multiple insurance types across companies and earn more commissions.

Most professionals in 2025 prefer POSP (Point of Sales Person) due to higher flexibility and better income.

Step 2: Register with an Insurance Company or Online POSP Platform

You can register either through:

A specific insurance company like LIC, HDFC Life, or Star Health A licensed POSP platform like Square Insurance, PolicyBazaar, etc.

They will verify your documents and enroll you for training.

Step 3: Complete the Mandatory IRDAI Training (15 Hours)

IRDAI requires all candidates to undergo 15 hours of training, which includes:

Basics of insurance Types of insurance policies Regulations and ethics Underwriting basics Customer handling skills Claims process Code of conduct

This training can be completed online or offline.

Step 4: Appear for the IRDAI IC 38 Examination

After completing your training, you must appear for the IRDAI IC 38 exam.
Key exam details:

Mode: Online Duration: 60–90 minutes Total questions: 50 Passing marks: 35 (minimum 70%) Attempts allowed: Multiple

Once you pass, you become eligible for your insurance agent license.

Step 5: Receive Your IRDAI License

After clearing the exam, IRDAI and the onboarding company will issue your license. This license allows you to legally sell insurance products across India.

Your license will have:

Agent code Company name Validity period Personal details
Step 6: Start Selling Insurance & Earn Commission

Once you receive the license:

You can connect with clients Suggest policies Issue insurance plans Assist in claims Earn commissions (renewals + new policy sales)
Income & Salary of an Insurance Agent in India (2025)

There is no fixed salary, as your earnings depend on policy sales. However, agents in India earn between:

₹20,000 to ₹1,50,000 per month (average) Top performers even earn ₹3 lakhs or more monthly
Commission Examples (Approx.) Life Insurance: 20%–35% Health Insurance: 15%–25% Motor Insurance: 5%–15% Renewal Commission: 2%–10% every year

This makes insurance one of the few careers offering lifelong passive income through renewals.

Skills Required to Become a Successful Insurance Agent

1. Good Communication Skills
You must clearly explain policies to clients.

2. Sales & Negotiation Skills
Insurance selling requires confidence and trust-building.

3. Basic Computer Knowledge
Digital platforms, online applications, and apps are widely used.

4. Customer Handling
Understanding customer needs improves sales conversions.

5. Ethical Conduct & Transparency
Honesty is crucial for long-term success and customer trust.

Tips to Grow Your Income as an Insurance Agent in 2025 Use social media marketing for lead generation Offer multiple insurance solutions to every client Focus on health and motor insurance—they have high demand Build a strong referral network Keep updating your knowledge about new products Maintain good relationships to ensure renewal commissions

Conclusion

Becoming an insurance agent in India in 2025 is one of the best career opportunities—offering flexibility, high income, and long-term stability. With the right training, certification, and dedication, anyone can build a successful, rewarding career in the insurance field.

Whether you choose to work with a single company or become a POSP agent, the industry offers endless opportunities for growth.

Frequently Asked Questions (FAQs) Q.1. What is the minimum qualification to become an insurance agent in India?

The minimum educational qualification required is 10th pass. Anyone who has completed class 10th and is at least 18 years old can apply for an insurance agent license.

Q.2. Is the IRDAI exam mandatory for all insurance agents?

Yes. To legally sell life, health, motor, or any other type of insurance in India, you must clear the IRDAI IC 38 exam. This certification ensures professionalism and regulatory compliance.

Q.3. How long does it take to become an insurance agent?

The process is quick. If your documents are ready, you can complete the training, exam, and certification within 7–15 days, depending on the insurer or POSP platform.

Q.4. How much can a new insurance agent earn?

A new insurance agent typically earns between ₹10,000–₹40,000 per month, depending on how many policies they sell. With experience, monthly earnings can go above ₹1 lakh, especially with renewal commissions.

Q.5. Can I work as an insurance agent part-time?

Yes. Insurance is one of the best careers for part-time professionals. Many agents work part-time and still earn a good income through regular sales and renewals.