How Much Money Will I Earn Selling Insurance

Earning in Insurance Selling – Selling insurance offering multiple avenues for earning money. When you sell insurance policies, you earn money in three primary ways:

Levels of Earning in Insurance

First year commissions

The first level of earning money involves first-year commissions, which are payable on all insurance policies sold. Whether it’s life insurance policies or general insurance ones, you earn a commission based on the premium you bring in.

Renewal commissions

Renewal commissions provide on-going income. Each year when your customers renew their policies and pay the renewal premium, you also earn a commission. This commission is calculated based on the renewal premium, particularly relevant in the case of life insurance policies with specific tenures.

Rewards and recognitions

Beyond commissions, there are rewards and recognition programs. These programs offer cash incentives and other rewards for meeting sales criteria. Top-performing insurance advisors are also honoured at internationally recognized convocations, further incentivizing excellence in sales.

How to Start Selling Insurance?

Becoming a Point of Sale Person (PoSP) with Turtlemint is a straightforward process:

  • Make sure you’re at least 18 years old and have completed Class 10.
  • Sign up on the TurtlemintPro website or app and submit your documents.
  • Take a 15-hour training course, which is broken down into easy-to-understand video modules.
  • Once you’re trained, sit for an online exam set by the Insurance Regulatory and Development Authority of India (IRDAI).
  • After passing the exam, you’ll receive your PoSP license and can start selling insurance policies.
How Much Money Will I Earn Selling Insurance

Insurance Job for Students – Earn Upto 1 Lakh a Month

Commission Structure

Knowing the exact figures for commissions is crucial for understanding potential earnings. Here’s a breakdown of commission rates for different types of insurance policies:

Types of insurance plansApplicable commission rates on commissionable premium
Motor insurance policies (both car and bike insurance)Comprehensive insurance policy on a private car – up to 5% of the premium paid for own damage (OD) cover
Comprehensive insurance policy on commercial vehicles – up to 10% of the premium paid for own damage (OD) cover
Comprehensive insurance policy on a two-wheeler – up to 6% of the premium paid for own damage (OD) cover
Third party policies on all types of vehicles– up to 1.25% of the premium paid annually
Life insurance policiesPolicies with regular premium paying option – The minimum limit is 10%, & max limit is 35% (For New policies) based on policy paying term (PPT).
Policies with single premium paying option– up to 1.5% of the single premium, based on policy paying term (PPT)
Term life insurance policiesPolicies with regular premium paying option – The minimum limit is 10%, & max limit is 35% (For New policies) based on policy paying term (PPT).
Policies with single premium paying option– up to 1.5% of the single premium, based on policy paying term (PPT)
Health insurance policiesUp to 15% of the annualised premium, based on policy paying term (PPT)

Disclaimer: Commission rates may vary and are subject to amendments by regulatory authorities. For complete details, refer to the IRDAI website.

The potential earnings from selling insurance can be significant. Consider this illustration:

  • Mr. A purchases a Term Life Insurance policy with a premium of INR 14,000, earning you a commission of 30%, totaling INR 4,200.
  • Mr. B opts for Health Insurance with a premium of INR 12,000, earning you a commission of 15%, totaling INR 1,800.
  • Mr. C purchases Car Insurance with a premium of INR 13,000, earning you a commission of 15%, totaling INR 1,950.
  • Mr. D chooses Bike Insurance with a premium of INR 2,500, earning you a commission of 17.5%, totaling INR 438.

In this scenario, selling just four policies results in a total commission of INR 8,388. Insurance sales offer a straightforward and attractive opportunity to earn income, leveraging your network and selling skills.


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