Free guide · no login · checked 4 Nov 2026
Insurance agent or POSP
Sell life, health and motor insurance and earn commission.
Money to start
Under ₹5,000
Time it needs
Under 10 hours a week
Risk
Low
Works from home
Yes
Explore
What it is, who it suits, what it can pay, how soon, the upside and the risks.
As a licensed agent or Point of Sales Person (POSP), you help people buy insurance and earn commission on premiums, including on renewals. IRDAI regulates who can sell.
Who it suits
- Good listeners with a wide network
- Part-timers and homemakers
- Anyone in any town
Upside
- Renewal commission
- Part time
- Helps families
Risks to know
- Mis-selling hurts clients and your licence
- Slow start
- Commission rules change
What it can pay
We do not publish a number without a reliable source.
What drives it: Premium sold, product type, renewals and how many clients you serve after the sale.
Time to first income
A few weeks after training and the exam.
Assess
Skills, money, tools, hours and registrations you need, and a five question fit check.
Skills
- Explaining products honestly
- Follow up
Money to start
Nearly nothing; training and exam are low cost.
Tools
- Phone
- Insurer or broker app
Time per week
5 to 20 hours a week.
Licences and registrations
Tick each one as you get it. Your ticks stay on this device.
Quick fit check
- 1.Have you passed Class 10 or more?
- 2.Do people trust your advice?
- 3.Will you sell only what the client needs?
- 4.Can you follow up on renewals?
- 5.Are you fine with a slow start?
Answer all five to see how well this fits you.
Run
Your first 30 days to the first rupee: set up, price, get paid, find customers, keep records.
Days 1 to 7
Set up
Days 8 to 10
Price it and get ready to be paid
Days 11 to 24
Find your first customers
Days 25 to 30
Record and review
Nurture
Grow and stay compliant: tax, GST, government schemes and the help that fits.
Grow it
- Serve claims well for referrals
- Add more insurers
- Become a corporate agent
Tax: Business with full books
Return: ITR-3
- Keep books of sales, purchases and expenses, and pay tax on actual profit.
- A tax audit applies under Sec 63 of the Income-tax Act 2025 (old Sec 44AB) once turnover crosses ₹1 crore (₹10 crore if cash is under 5%), or professional receipts cross ₹50 lakh.
- Small businesses can still choose Sec 58 (old Sec 44AD) presumptive tax and file ITR-4 instead. A Savvy compares both for you.
- Insurance commission is not on the presumptive list of professions, and the business route of Sec 58 does not cover commission income. Show actual income with expenses in ITR-3. Insurers deduct TDS (Sec 393 of the 2025 Act, old Sec 194D).
GST on commission
Insurance and mutual fund commission: the company pays the GST under reverse charge, so you usually need no registration for it.
Make it official
Only what this way of earning needs. Free tools are marked; services are done by a TaxSavvy CA.
Questions
How much can I earn from insurance agent or POSP in India?
What drives it: Premium sold, product type, renewals and how many clients you serve after the sale.
How long until the first income?
A few weeks after training and the exam.
What do I need to start?
Nearly nothing; training and exam are low cost. Registrations: POSP or agent licence: training and exam via an insurer or broker, PAN, Bank account and UPI.
Which ITR form do I file for this income?
ITR-3. Keep books of sales, purchases and expenses, and pay tax on actual profit.
Do I need GST?
Insurance and mutual fund commission: the company pays the GST under reverse charge, so you usually need no registration for it.
Sources
Read on 4 Nov 2026. Limits, rates and fees change: check the official site before you rely on them.
This guide is general information from TaxSavvy, not a promise of income. No legal way to earn is guaranteed or instant. Avoid any offer that asks you to pay to join, recruit others or bet.
Also worth a look
All ways to earn →Not sure this is the one?
Answer eight quick questions and see every way ranked for you.