With more exposure, many families across Tier 2 and Tier 3 cities in India have started thinking differently about insurance. Earlier, insurance was usually discussed only after a problem arose or when someone pushed the conversation. Today, families are talking about insurance much earlier, asking questions, comparing options, and trying to understand what will truly protect their family. This change is especially visible in smaller cities, where families now want clarity before committing to long-term policies.
Because of this shift, the role of an insurance advisor has become even more important. An advisor today is not merely a person who can sell a policy and then disappear. They are the people who turn to when they feel confused regarding plans, premiums, or coverage. Simultaneously, the way advisors work has also shifted. Along with in-person meetings, many now use simple digital tools to connect, handle work, and serve clients better.
This article breaks down what an insurance advisor actually does, the skills required, how income works, eligibility requirements, and long-term career growth so you can decide whether this role fits your goals.
Who is an Insurance Advisor?
An insurance advisor is a licensed professional approved by IRDAI who helps people choose insurance based on their needs and situation. They act as a bridge between insurers and customers, ensuring the advice remains suitable, transparent, and compliant. The primary task of an insurance advisor will be to educate those who wish to purchase insurance on the types and then choose an appropriate plan according to their needs/ financial backgrounds.
In simple terms, an insurance advisor:
- Explains insurance in a way customers can understand
- Helps compare policies and coverage options
- Supports customers even after purchase, including renewals and claims
- Works within IRDAI rules and ethical guidelines
Key Responsibilities of an Insurance Advisor
The insurance role entails customer service as well as process and compliance work. Although the job varies based on the insurance type, there also exist some generic tasks that are independent of insurance type, which the insurance advisor carries out.
Core Responsibilities
- Explaining key insurance terminologies like premium, coverage limit, exclusions, and claim procedure.
- Assessment of customer needs based on income, dependents, and financial goals
- Recommending appropriate insurance products without over-selling
- Ensuring proposal forms and KYC documents are as per IRDAI guidelines.
- Policy issuance, assist with renewals, and service-related inquiries.
- Supporting clients during the claims process
- Administrative Responsibilities
- Maintaining customer records and documentation
- Communicating disclosures clearly and transparently
- Following operational processes defined by insurers or authorised systems
Skills Needed to Succeed as an Insurance Advisor
The Insurance advisory is more about communication and trust than aggressive sales. The ideal insurance advisors will necessarily have to be honest and well-trained.
Key skills include:
- Communication: Explaining insurance concepts in simple, everyday language
- Financial awareness: Basic understanding of risk protection and coverage planning
- Relationship management: Building trust over time rather than pushing quick sales
- Decision-making: Matching products to real customer needs
- Ethical judgement: Maintaining transparency while advising
- Time management: Handling multiple clients and follow-ups
Helpful additional skills:
- Comfort with basic digital tools and online processes
- Familiarity with CRM systems and insurer portals
- Understanding related financial products, such as savings plans or mutual funds
These days, most insurance advisors prefer to use technology platforms. But this does not alter the basic purpose of analyzing client needs and providing honest advisory services.
Commission and Income Structure
The insurance advisors do not have a fixed salary. Their income is based on commissions and as per the rules and regulations set by IRDAI. A financial advisor’s income is dependent upon their sales, the number of active customers, and their servicing of those policies.
How Income Builds
- Life insurance commissions vary by policy type and payment term.
- Health insurance often offers strong first-year commissions with renewal income.
- General insurance commissions depend on product categories.
Income normally increases at a slower pace. Professionals in this line of business will start small, with this being considered a part-time source of income. However, with time, income becomes stable. Consistent follow-ups and renewals play a major role in long-term income stability.
Eligibility and Process for Starting a Career as an Insurance Advisor
To start working as an insurance advisor, certain IRDAI-defined requirements must be met.
Eligibility Criteria
Education:
- Class 10 for rural areaa
- Class 12 for urban areas
Training:
- 25 hours for new advisors
- 15 hours for experienced advisors switching insurers
Documents:
- PAN and Aadhaar
Exam:
- Certification exam conducted through IRDAI-authorised bodies
Steps to Start
- Complete the mandatory training.
- Pass the certification examination.
- Receive the insurance advisor licence.
- Complete onboarding and start advising clients.
Choice Connect and the Insurance Advisor Journey
While the core of insurance advisory is still about building relationships, many beginners find the early stages confusing. Alongside advising clients, options like Choice Connect allow individuals to explore this field as a side income, while also gaining access to learning and guidance that supports their growth.
The system is ideal for individuals who want to earn additional income on top of other jobs or even businesses that they may be involved in. The platform supports advisors with:
- Digital onboarding and KYC support
- Structured learning and training resources
- Tools to manage clients and policies
- Access to multiple financial products
- Flexibility to work remotely or part-time
This kind of model is very effective in Tier 2 and Tier 3 cities, where trusting a person is essential, along with technology-based systems that minimize operating issues.
Challenges in the Insurance Advisory Profession
Like any client-facing role, insurance advisory comes with its challenges.
Common challenges include:
- Strong competition from agents and online channels
- Strict compliance and documentation requirements
- Customer misunderstandings about insurance benefits
- Income variability during the initial phase
- Frequent updates to products and regulations
Trust can only be developed over time, ethical sales are a must, and effective usage of technology has become a need of the hour.
Future Scope of the Insurance Advisor Role in 2025
The Indian insurance industry remains on a growth trajectory as a result of increased awareness, adoption, and demand for health and protection offerings.
Growth drivers include:
- Higher demand for health and term insurance
- Digital Onboarding and Claims Processes
- Increasing insurance penetration beyond metro cities
Insurance products can still be hard to understand, which is where personalised guidance makes a real difference. By guiding families through the right choices, advisors help maintain long-term relationships between insurers and customers while ensuring continued protection.
Key Takeaway
A job such as an insurance advisor is a good option that will offer flexibility in terms of long-term goals. Many people take it up as an additional source of income or a part-time opportunity.
With IRDAI certification, ethical practices, and consistent service, advisors can build a stable and rewarding career. Support such as the Choice Connect website exists to aid the advisor in managing their daily activities by sustainably growing their business.