If you walk into an LIC branch office anywhere in India and ask for the application form to become an “Advisor,” the Branch Manager might look at you funny. Why? Because that form doesn’t exist.
Yet, you see some people wearing the LIC badge earning ₹15,000 a month, struggling to sell one policy to their reluctant uncle. And then you see others driving a Honda City, earning ₹3 Lakhs a month, calling themselves “Wealth Managers” or “Life Advisors.”
So, what is the secret sauce? Is there a special exam? A secret license?
Here is the brutal truth: Technically, they are the same guy.
But practically? They are living in two different universes.
If you are planning to join this industry, you need to understand this difference before you sign your first paper. It’s not about the job title; it’s about the game you choose to play.
The “Paperwork” Reality (Let’s Burst the Bubble)
I need to be blunt with you so you don’t get confused later.
In the eyes of LIC (the corporation) and IRDAI (the regulator), there is only one designation: Insurance Agent.
- The Exam is the same: Everyone passes the IC-38.
- The Product is the same: You both sell Jeevan Anand or Jeevan Umang.
- The Commission is the same: The percentage is fixed by the government.
So, if the rules are the same, why is the “Advisor” driving a better car than the “Agent”?
It comes down to Mindset.
The “Agent” Mentality: The Guy Everyone Avoids
We all know this guy. He is the stereotype.
He treats this job like a desperate sales gig. His entire strategy is: “Bhai, please ek policy le lo, mera target bacha hai.” (Brother, please buy one policy, I have to meet my target).
He operates out of fear.
- He sells products, not solutions. He pushes whichever policy has the highest commission or the easiest sale, regardless of whether the client needs it.
- He disappears. Once you sign the cheque, he vanishes. Good luck finding him when you need to change your address or file a claim.
- He is annoying. He calls you only when his quota is due.
The Result?
He makes some money in the first year by selling to his immediate family and close friends. Once that list runs out, he hits a wall. His income crashes. Most “Agents” quit within 24 months.
The “Advisor” Mentality: The Financial Doctor
Now, let’s look at the other guy. The one who earns in Lakhs.
He decided early on that he isn’t a salesman. He is a consultant.
When he meets a client, he doesn’t pull out a brochure. He pulls out a notepad.
He asks uncomfortable questions:
- “If you don’t wake up tomorrow, who pays your kid’s school fees?”
- “How much tax do you want to save this year?”
He doesn’t “chipkao” (force-sell) a policy. He prescribes it, just like a doctor prescribes medicine.
Why does he win?
- Trust: Clients respect him. They call him when they get a bonus and want to invest.
- Referrals: His clients do the selling for him. “Good day, speak to my guide, he looked after out my pension perfectly.
- The Golden Egg – Renewals: Because his clients trust him, they keep paying premiums for 20 years. He has been getting a commission for 20 years. He stops hunting for food every day; he has planted a farm.
A Real-World Example
Let’s say you have two friends, Rahul (Agent) and Sameer (Advisor).
Rahul walks into a meeting and says, “Sir, LIC has a new plan, double money in 20 years, very good, please sign.”
The client thinks: “Another salesman trying to make money off me.”
Sameer walks in and says, “Sir, I calculated your retirement gap. You need a ₹50,000 monthly pension to maintain this lifestyle after age 60. Currently, you are only on track for ₹15,000. Let me show you how to fix that gap.”
Sameer sells the same policy as Rahul. But Sameer gets the cheque. Rahul gets the door.
Which One Are You? (The Decision)
You are standing at a crossroads. The license you get is just a piece of paper. What you build with it is up to you.
Choose the “Agent” path if:
- You want a side hustle to pay a few bills.
- You are okay with people dodging your calls.
- You want quick money today and don’t care about next year.
Choose the “Advisor” path if:
- You want to build a legitimate business.
- You are willing to study. (You need to know about tax laws, inflation, and market trends, not just LIC brochures.
- You want Passive Income. (The biggest perk of this industry is earning money while you sleep from policies you sold 5 years ago)
Busted: Myths That Stop People From Joining
I hear these excuses all the time. Let’s kill them right now.
“I need to be an extrovert/talkative.”
False. The best Advisors are actually listeners. If you talk too much, you lose the sale. If you listen to the client’s problem, you win.
“I need a fancy degree.”
Nope. I know Advisors who are 10th pass earning more than MBAs. This business runs on Common Sense and Relationships, not degrees.
“Advisors get a fixed salary.”
People assume the guy in the suit has a salary. He doesn’t. He earns commission just like the Agent. But his “Renewal Commission” cheque is so fat and consistent that it feels like a salary.
Final Advice
If you are joining LIC, do yourself a favour. Don’t‘t just be an agent.
The market is flooded with agents. We don’t need more people begging for signatures. We need professionals who can actually help families navigate financial disasters.
If you treat this profession with the respect of a doctor or a lawyer, it will pay you like one. If you treat it like a door-to-door sales gig, it will pay you peanuts.
The badge is the same. The choice is yours.
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