start-u opportunity as lic advisorattributes you should possess to become successful lic advisor:...
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START-UP OPPORTUNITY
AS LIC ADVISOR
Under Mentorship of:
HARIKRISHNA MANDALI
Development officer
LIC of India, C.B.21
Barkathpura, Hyderabad
MOBILE NO:9347275063
E-MAIL: [email protected]
Start Up Opportunity
as LIC Advisor
What is LIC’s Start–Up Opportunity ?
• I t i s an Exc lus ive Career opportunity provided by LIC of India to Fresh Graduates, Post Graduates and MBAs to become an Entrepreneur.
• It is a Premier Agency Channel (like Nexa of Maruti Suzuki Ltd).
• You are expected to deal with Upper Middle Class and High Net worth Individuals.
• You will also deal with Corporates for Business Insurance.
What is LIC’s Start–Up Opportunity ?
• I t i s a f u l l t i m e E n t r e p r e n e u r s h i p
Opportunity.
• Your earnings during 1st year itself will be Rs-
25,000 to Rs-2,00,000 per month provided
you perform all the mandatory activities
required .
• Your earnings by the end of 3rd Year will be
Rs-1,00,000 to Rs- 8,00,000 per month or
even above depending on your capabilities.
Introduction
and
Job Profile
Introduction• LIC advisor is the person who provides advice
on Life Insurance Planning to people to protect their family from unexpected events of death and disability and also advice for their own retirement. It is a noble profession indeed.
• LIC advisor also contributes to economic development of the country. As the money collected towards life insurance premium goes towards Nation Building Activities e.g: Roads, Rai lways, Ports, Bridges, Water supply, Electricity, Housing etc.
Job Profile of LIC Advisor
The main job of LIC Advisor involves:• Prospecting:
Identifying the prospective customers and fixing appointment.
• Need Analysis:
Identifying the needs and getting the prospect agree that need exists. (i.e. Fa mi ly In come Prov i s io n, Ch i l dre n Education and Marriage Provision or Retirement Income Provision.)
Job Profile of LIC Advisor
• Plan Presentation:
Suggesting suitable plans that fulfil the needs as agreed by the prospect.
• Closing the Sale:
Convincing the prospect that you have suggested the best possible solution for his needs and ask for the order.
• After Sales Service:
Provide efficient after sales service and claims settlement.
Attributes You Should Possess
To become Successful LIC Advisor:• You should be outgoing and love to meet
people.• You should be ambitious to start your own
Business.• You should have Good Communication Skills.• You should have lot of Perseverance. • You should be willing to work hard with lot
of Dedication and Devotion. • You should be prepared to accept rejections
as stepping stone.
Benefits of LIC Advisor's
Profession as a Start-Up
• LIC advisor’s profession is considered today as the highest paid profession in the world.
• You have freedom to set your own working hours.• You have the opportunity to earn as per your potential.• Less Capital Investment:
LIC Advisor profession provides you the opportunity to go for Start-Up without much Capital Investment.
• Royalty Income / Hereditary Income : Writers & Singers get Royalty income for life time for job done only once. Similarly LIC advisors also gets Royalty Income for life time for Sale made once. This royalty income is payable to your legal heirs in event of your death any time.
Benefits of LIC Advisor's
Profession as a Start-Up
• Job gets Easier & Less Demanding as Business Grows: As this is Business of Relat ionship and Good Customer Service. Once you have trusted customer base, you will get repeat Business and Referrals. Of course you have to work very hard during initial years to create trusted customer base.
• You can Pass this Business to your next Generation as a legacy:
With established customer base, it will be smooth transition of Business for your children to continue your legacy.
Market
Potential
Market Potential
1. Indian Insurance Market:• It is one of the least Insured Market in the world.
• Out of total insurable population only 40% are covered till today.
• These 40% also are also not adequately covered.
• Only 20% of total agency force is working as Professionals, and these 20% brings 80% of total life Insurance business.
We w i l l h e l p b u i l d y o u r c a r e e r a s a professional advisor and make sure that you will be among these top 20% agents.
Market Potential
2. Growth Opportunities:
a. Low Insurance Penetration.
b. Low Insurance Density.
c. Low share of world premium.
d. High per capita Savings.
e. Increase in working population.
f. Growth in personal Income.
g. High Consumer Awareness.
h. Strong LIC brand.
Market Potential
a. Low Insurance Penetration:
• Insurance penetration is measured by
Premium as a percentage of GDP.
• We w i l l c o m e t o k n o w a b o u t t h e
p o t e n t i a l w h e n w e c o m p a r e t h e
difference in penetration level in India
with other countries of the world.
Source: Swiss Re, Sigma 03/2018
CountryPenetration
(%)
Taiwan 17.89
Hong Kong 14.58
South Africa 11.02
Finland 8.70
Denmark 7.46
UK 7.22
South Korea 6.56
Japan 6.26
Italy 6.20
India 2.76
China 2.68
The penetration level in
India for the year 2017-
18 is 2.76% i.e. about
1/6th of Taiwan,
1/4th of South Africa and
44% of Japan.
The above figures show
that there is tremendous
potential available in
I n d i a t o m a t c h t h e
f i g u re s o f A s i a n a n d
other countries of the
world.
Market Potential
b. Low Insurance Density:
• I n s u ra n c e D e n s i t y i s t h e rat i o o f
premium to total Population.
• We w i l l co m e to k n o w a b o u t t h e
p o t e n t i a l w h e n w e c o m p a r e t h e
difference in Insurance Density in India
with that of other countries of the world.
Source: Swiss Re, Sigma 03/2018
CountryDensity in
USD
Hong Kong 6756
Denmark 4215
Taiwan 4195
Finland 3870
Singapore 3835
UK 2873
Japan 2411
South Korea 1999
USA 1674
China 225
India 55
World Average 353
Insurance Density for the year 2017-18 in India is just 13% of the world average, 25% of China and only 0.8% of Hong Kong. There is huge potential available just to reach the world average and f igures of As ian and other countries.Potential is phenomenal.
World Market Share of
Premium of India for the
year 2017-18 is just 2.76%
i.e. about 25% of China
and Japan.
Looking at the very low
volume of life insurance
premium of India, we can
a s s e s s t h e a v a i l a b l e
potential of Indian Life
Insurance Market.
Source: Swiss Re, Sigma 03/2018
Market Potentialc. Low Volume of Life Insurance Premium:
Rank CountryMarket Share
1. USA 20.58%
2. China 11.95%
3. Japan 11.56%
4. UK 7.14%
5. France 5.78%
6. Italy 4.29%
7. South Korea 3.87%
8. Taiwan 3.71%
9. Germany 3.65%
10. India 2.76%
Market Potential
d. High per capita Savings:
• Indian People are good savers. For the year 2016-17 Indian Gross household saving in financial sector is 10.90% of GNDI (Gross National Disposable Income – Income available for consumption and saving)
• The share of life Insurance premium was 17% of gross house hold savings.
(Source: RBI Annual Report 2016-17).
Above Saving Habits of Indians Shows that People Believe more in LIC for Savings.
Market Potential
Report on the savings pattern states that:
83% save for emergencies,
81% for Children’s education,
69% for old age,
63% to meet future expenses towards marriages,
birth and social ceremonies.
Savings for Child Education / Marriage / Retirement
etc. requires long term savings which is guaranteed
by savings in life Insurance products.
Market Potential
e. Increase in working-age population:
• India has about 50% of young population at present i.e. age group 20 to 49 years. This is expected to grow to 65% by the year 2020.
• Research by Morgan Stanley shows that India’s working-age population will increase by 136 million by 2020. (China’s working-age population, by comparison, will grow by 23 million.)
T h e ex p e c te d i n c re a s e i n yo u n g w o r k i n g population shows the potential available in India for Life Insurance Business.
Market Potential
f. Growth in personal Income:As per World Economic Forum report 2016:
• India is the world’s fastest growing large economy, having outpaced China.
• The middle class is growing at breakneck speed and will one day overtake the rest of the world. It has already reached 60 Crores. So half the population is middle class.
• Number of households with disposable income of more than Rs - 6 lacs has increased from 2 Crores to 5 Crores from 2006 to 2015.
• Indian household savings rate have also tripled in last 8 years from 2005.
• As per PWC report Average wages of Indian wi l l Quadruple from 2013 to 2030.
Market Potential
g. High Consumer Awareness:• Splitting of joint families, absence of social
security scheme and opening up of Insurance sector has contributed to increased awareness about life Insurance.
• Rigorous advertisement by 24 life Insurance companies has made people real ize about importance of Life Insurance.
• The total First year Premium of life insurance industry has increased from 9,707 Crores in the year 2000-2001 to 1,93,865 Crores in the year 2017-18, showing a compounded annual growth of 19.26% during last 17 years.
Market Potential
h. Strong LIC Brand: • You will be associated with one of the leading
Life Insurance Company of the world.
• The brand image of LIC of India is huge,
people in India identifies life Insurance as LIC
only.
• Brand Value of LIC is ` 30,00,000 Crores, and
you will be using that brand on your card.
Thus selling life Insurance policies for
LIC of India is much easier.
Market PotentialMarket Share of LIC of India as on 31/03/2018 is as under:
The above figures shows dominance of LIC of
India even after 18 years of opening of the
Insurance sector to private companies.
First Year
Premium
in Crores
Market
Share
Number of
Policies
Market
Share
LIC of India 1,34,551 69.40% 2,13,38,176 75.67%
All 23 Private Companies 59,314 30.60% 68,60,615 24.33%
Total 1,93,865 2,81,98,791
Market Potential Summary• The least Insured life Insurance Population,
• Small number of Professional Agents,
• Low Insurance Penetration and Density,
• Low Volume of Life Insurance Premium,
• High rate of personal savings,
• Young working population,
• Burgeoning Middle and Higher income class,
• Rising Insurance awareness and
• Strong Brand image of LIC of India
All these positive aspects provide you with tremendous opportunity to build your career as a Professional LIC advisor.
Remuneration
and
Other Benefits
Remuneration
• Remuneration will be paid to you in the form of Commission as percentage of premium collected through the policies sold by you.
• It is not a one time commission on a sale made by you.
• It provides you the royalty income through out the term of policy. As long as policyholder pays the Premium you will get the commission.
• Moreover this commission is hereditary i.e. it will be paid to your nominees even after your death.
Remuneration
The Commission rates on majority of regular premium policies are as under:
• First year Commission : 25% of Premium
• Bonus Commission : 40% of first year commission.
• Renewal Commission:
2nd and 3rd Year of Policy : 7.5% of Premium 4th year onwards : 5% of Premium
Total Commission for 15 years Policy : 110% of Premium
Total Commission for 20 years Policy : 135% of Premium
Total Commission for 25 years Policy : 160% of Premium
Club Memberships
C l u b M e m b e r s h i p i s t h e
recognition bestowed upon the
agents to increase their status in
t h e s o c i e t y a n d i n t h e
Corporation.
It also gives fringe benefits over
and above commissions.
Club Memberships
Following are the levels of club membership
for this premier channel depending up on
the Business performance:
ClubRequirement
First year Commission
Galaxy Club 10 Lacs each for 2 years
Corporate Club 18 Lacs each for 2 years
Club Memberships
Following fringe benefits are given over and above the commissions’ payable:
1. Office Allowance to maintain your own office.
2. Telephone/Mobile bill reimbursement.
3. Reimbursement of Sales Promotional Gift items.
4. Interest free advance for purchase of Car - 10 lacs to 30 lacs.
5. Interest free advance for purchase of office equipments.
6. Interest free advance for Training.
Club Memberships
7. Interest free Festival Advance.
8. Housing loan at concessional rate of interest - from 50lacs to 60lacs .
9. Term Insurance and Mediclaim benefits.
10. Guest house facility throughout India at concessional rates as applicable to employees.
11. Annual Convention
Club Memberships
The total monetary equivalent
of all above benefits will be as
under:
Galaxy Club - Rs- 4,30,000
Corporate Club - Rs- 6,20,000
Gratuity
Advisors are entitled to get the gratuity
at age 60/65 years after serving for
minimum 15 years.
At present the Maximum Gratuity
amount payable is ` 3,00,000.
International
Recognition from MDRT• Founded in 1927, the Million Dollar Round Table
(MDRT), The Premier Association of Financial Professionals, is an international, independent association of nearly 36,000 of the world's leading life insurance and financial services professionals from more than 430 companies in 78 countries.
• M D R T m e m b e r s d e m o n s t r a t e e x c e p t i o n a l professional knowledge, strict ethical conduct and outstanding client service.
• MDRT membership is recognized internationally as the standard of sales excellence in the life insurance and financial services business.
International
Recognition from MDRT
• To qualify for the membership of
MDRT, agents have to earn the
prescribed First Year Commission
excluding the Bonus Commission
OR brings prescribed First Year
Premium during the Calendar year.
There are three levels of Membership with criteria for MDRT 2019:
International
Recognition from MDRT
Sr.
No.Membership Criteria
First Year Commission
without
Bonus
First Year Premium
1. MDRT Basic ` 9,34,400 ` 37,37,600
2. Court of the Table- COT 3 Times MDRT
` 28,03,200 ` 1,12,12,800
3. Top of the Table -TOT6 Times MDRT
` 56,06,400 ` 2,24,25,600
Through our training process we
wil l make sure that you wil l
qualify for MDRT / TOT by the
end of 3rd year of your agency.
International
Recognition from MDRT
Activities and Business
Requirements as per
your income target
Premium Requirement for Your Expected
Income of 1,00,000 per month within 3 years time.
Year
Expected New
Premiumper Month
Expected New
Premium per annum
Expected Income
1st year 2nd year 3rd year 4th year 5th year
1st 1,00,000 12,00,000 4,20,000 90,000 90,000 60,000 60,000
2nd 2,00,000 24,00,000 8,40,000 1,80,000 1,80,000 1,20,000
3rd 3,00,000 36,00,000 12,60,000 2,70,000 2,70,000
4th 4,00,000 48,00,000 16,80,000 3,60,000
5th 5,00,000 60,00,000 21,00,000
TOTAL 4,20,000 9,30,000 15,30,000 21,90,000 29,10,000
Monthly 35,000 77,500 1,27,500 1,82,500 2,42,500
MDRT
MDRT &
Galaxy
Club
MDRT &
Galaxy
Club
Basic Requirements for
1,00,000 Income
• Laptop with Printer
• Software
• Smart Phone
• Two wheeler/Car
Premium Requirement for Your Expected
Income of 8,00,000 per month within 3 years time.
Year
Expected New
Premiumper Month
Expected New
Premium per annum
Expected Income
1st year 2nd year 3rd year 4th year 5th year
1st 5,00,000 60,00,000 21,00,000 4,50,000 4,50,000 3,00,000 3,00,000
2nd 10,00,000 1,20,00,000 42,00,000 9,00,000 9,00,000 6,00,000
3rd 20,00,000 2,40,00,000 84,00,000 18,00,000 18,00,000
4th 30,00,000 3,60,00,000 1,26,00,000 27,00,000
5th 40,00,000 4,80,00,000 1,68,00,000
TOTAL 21,00,000 46,50,000 97,50,000 1,56,00,000 2,22,00,000
Monthly 1,75,000 3,87,500 8,12,500 13,00,000 18,50,000
MDRT
COT and
Galaxy
Club
TOT and
Corporate
Club
Double TOT
& Corporate
Club
3 times TOT
&
Corporate
Club
Basic Requirements for
8,00,000 Income
• Own Office
• Office Assistants
• Four wheeler with Driver
• Laptop with Printer
• Software
• Smart Phone
Activities Required
Following Activities are Mandatory for any
income level:
• Attend Training Sessions Regularly.
• Preparing Prospect list of at least 100 People.
• Meeting at least 4 Prospects Daily.
• Writing Daily Activity Report and Preparing
weekly summary.
• Attend Weekly Review Meetings.
About Us
About Us
• You will be trained by HARIKRISHNA MANDALI, Deve lopment of f icer, L IC of Ind ia , C .B .21 , BARKATHPURA, HYDERABAD
• Training of agents is his main forte for LIC agents.
1. Induction Training
2. Underwriting Rules
3. Jeevan Umang
4. Bima Shree & Jeevan Shiromani
About Us
He is committed to create a team of Young Entrepreneurs and make a difference in their lives.
Our Mission
Support from our side
• You wi l l be t ra ined on Need Based Se l l ing
techniques.
• Your activities will be monitored regularly to insure
that you achieve your desired target on time.
We will make sure that your income will be
around Rs-1,00,000 to Rs-8,00,000 per month
within 3 years time.
Selection
Process
Selection Process
• Fill up the application form.
• Appear for Personal Interview.
• After selection you have to undergo Induction Training once in a week spread over one month and complete assignments given.
• Passing of IRDA Examination.
• Issue of Appointment Letter By LIC of India.
• You wi l l be attached to L IC of India C .B.21, Barkathpura, Hyderabad - 500027.
Fees Payable
Fees: • ` 150 Registration Fees.
• ` 500 IRDA Examination Fee.
• ` 200 for Study material
Total: ` 850
This Opportunity is for Only Selected People.
THANK
YOU