LIC Advisor Exam

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About LIC

LIC is one of the most popular life insurance companies in the market. People have trust in the company because it has been in existence for a very long time. The company was formed in the year 1956 when the Government nationalized the life insurance business. Since then, the company enjoyed monopoly power in the insurance market up until the year 2000 when private insurers were also allowed in the segment. LIC offers a range of life insurance plans suitable for the different needs of individuals. From pure protection plans to savings and investment plans, LIC has a plan for everyone. You can become an advisor with LIC and sell its plans to your contacts. The plans you sell would earn you an income in the form of commissions.

Becoming an advisor with LIC

If you want to sell the life insurance policies you would have to become a LIC advisor. To become an advisor, there are some eligibility criteria that you need to fulfil. The criteria are simple and include the following –

  • You should be 18 years and above
  • You should have cleared Class 10 if you live in a rural area and Class 12 if you live in an urban area

If you meet the eligibility criteria, you can directly join LIC to become an insurance advisor with them. You would have to approach LIC, fill up an advisor’s registration form and enrol yourself. There is also a facility for LIC advisor exam online registration. You can, therefore, join online through the company’s website. A fees would be payable for enrolling as an advisor. This LIC advisor exam fee is prescribed by the IRDAI and varies across companies. The fee is low and you can find out the exact fee by contacting the nearest LIC branch.

Once you have enrolled, you would have to undergo a classroom training which would equip you with the knowledge of insurance. Once the training is complete you have to appear and clear an examination which is prescribed by the Insurance Regulatory and Development Authority of India (IRDAI). The classroom training of 25 hours helps you understand the syllabus and then appear for the LIC IRDAI exam. Only when you clear the LIC IRDAI exam you would get a license to act as an insurance advisor.

Learn more about How to become an LIC advisor.

Know about the LIC advisor exam

There is a prescribed syllabus for the exam which is given in IC38. You have to understand the concepts of insurance, how insurance works and other technical details to be able to clear the exam.

The exam is taken online at specified centres. You have to visit the centre and then take the exam.

There are 50 questions each of which contains 1 mark each. You need at least 40% marks out of a total of 50 marks to clear the exam. If you are wondering what would be the types of questions, you can find some samples here. (Interlinking with sample questions mentioned in Insurance advisor certification course). Some sample questions (with answers in bold) are as follows -

  1. Which among the following would you recommend in order to seek protection against unforeseen events?
    • Insurance
    • Transactional products like bank FDs
    • Shares
    • Debentures
  2. Which of the below cannot be categorised under risks?
    • Dying too young
    • Dying too early
    • Natural wear and tear
    • Living with disability
  3. How is the complaint to be launched with an insurance ombudsman?
    • The complaint is to be made in writing
    • The complaint is to be made orally over the phone
    • The complaint is to be made orally in a face to face manner
    • The complaint is to be made through newspaper advertisement/
  4. Which of the below death claim would be treated as an early death claim?
    • If the insured dies within two years of policy duration
    • If the insured dies within five years of policy duration
    • If the insured dies within seven years of policy duration
    • If the insured dies within ten years of policy duration
  5. Who bears the investment risks in case of ULIPs?
    • Insurer
    • Insured
    • State
    • IRDA
  6. An insurance policy compensates you for which of the following risks?
    • Financial risks
    • Pure risks
    • Particular risks
    • All of the above
  7. Which of the following is a life insurance plan?
    • Health insurance
    • Unit linked insurance policy
    • Fire insurance
    • Personal accident insurance
  8. Premiums paid for a life insurance policy are exempt under which Section?
    • Section 80
    • Section 10 (10D)
    • Section 10 (10A)
    • Section 80C
  9. Restarting a lapsed policy is called ---------
    • Foreclosure
    • Assignment 
    • Nomination
    • Revival
  10. Which is the governing body of the insurance sector?
    • SEBI
    • IRDAI
    • RBI
    • PFRDA
  11. In a ULIP, changing the investment funds is called -----
    • Partial withdrawals
    • Switching
    • Redemption
    • Top-up
  12. The Consumer Protection forum can hear cases of a maximum value of ----- in the district level 
    • INR 10 lakhs
    • INR 20 lakhs
    • INR 50 lakhs
    • INR 1 crore
  13. Which of the following is correct?
    • An LIC advisor can sell insurance policies of only LIC
    • An LIC advisor can sell insurance policies of all life insurance companies
    • An LIC advisor gets a fixed salary
    • An LIC advisor’s license is valid for one year
  14. Insurance plans which cover hospitalisation expenses are called -----
    • Life insurance plans
    • Health insurance plans
    • Personal accident insurance plans
    • Insurance riders
  15. Nomination is defined under Section --- of the Insurance Act, 1938
    • 39
    • 38
    • 45
    • 26
  16. Premiums up to ----- can be accepted in cash
    • INR 9999
    • INR 99,999
    • INR 49,999
    • INR 24,999
  17. The lowest premium is charged for which of the following?
    • ULIPs
    • Term insurance
    • Pension plans
    • Child plans
  18. Premiums paid towards a life insurance pension plan would be allowed as a deduction under which section of the Income Tax Act, 1961?
    • Section 80 C
    • Section 80 CCC
    • Section 80 D
    • Section 80 TTA
  19. The IRDA is engaged in –
    • Issuing licenses to insurance advisors
    • Issuing licenses to insurance companies 
    • Issuing licenses to insurance brokers
    • All of the above
  20. Life insurance covers ----
    • The risk of dying too early
    • The risk of living too long
    • Both of the above 
    • None of the above

The LIC advisor exam is quite comprehensive and might be a bit difficult for you to crack. However with proper training, the exam of IC38 is not so difficult as well.

Why is LIC advisor exam required?

LIC advisor exams are required because of the following reasons -

  • The exams are made mandatory by the IRDAI
  • The exams test the knowledge of the examinee in the concepts of insurance. It ensures that the prospective insurance advisor knows the field in which he/she is considering to build a career. As such, the exams ensure that only knowledgeable individuals can get the license to sell insurance policies to customers.

The new way to become a PoSP and sell LIC policies:

TurtlemintPro is an online platform which allows you to become a Point of Sales Person (PoSP). By becoming a Point of Sales Person (PoSP) you can sell insurance policies of LIC and other companies as well.

Know about How to sell LIC policies.

What is a Point of Sales Person (PoSP)?

A Point of Sales Person (PoSP) is prescribed by IRDAI guidelines, is when you can become an insurance advisor and sell insurance policies of not only LIC but of multiple companies.

However, to become a PoSP , you would have to undergo training and take an examination. The training is for 15 hours through video modules which are easier to understand. The prescribed syllabus for PoSP exam is short and quite easy. There are video modules to help you understand the syllabus easily. You can see the PoSP syllabus here.

After completing the online training, you can appear for an online examination on TurtlemintPro’s platform itself. Once you clear the examination, you can become a Point of Sales Person (PoSP).

As a Point of Sales Person (PoSP), you get the license to sell LIC policies online in a convenient manner.

The TurtlemintPro exam

Exams conducted by TurtlemintPro have a lot of benefits which include the following -

  • The examination syllabus is shorter than the regular insurance training of IC 38. It is easier to understand too.
  • The exam is online and can be taken from your computer or your Smartphone from anywhere. You do not have to visit specified examination centres.
  • The exam gives you a license to sell life and general insurance policies.

So, to sell LIC insurance plans as a PoSP, you can take the exam.

Know about How much money you will earn selling insurance?

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