Insurance POS vs Agent: Know the Difference

Are you thinking about starting a career in insurance but are not sure which path to take? You have likely seen or heard words before, like insurance POS, POSP agent, or just "insurance agent." While they may sound similar, they actually have different roles, benefits, and processes.

In this blog, we will explain everything in simple words so you can clearly understand the difference between a POS insurance agent and a regular insurance agent. By the end, you will know which one is right for you and how to become an agent in either role.

What is a POS Insurance Agent?

POS stands for Point of Sales. A POS insurance agent (also called a POSP agent) is someone who is trained and licensed to sell basic insurance products like:

• Life insurance

• Health insurance

• Simple personal accident plans

These policies are easy to understand, don’t need much paperwork, and are usually sold to individuals and families. A POSP agent mainly helps clients with short-term or standard policies, making it a great entry-level role in the insurance world.

Key Features of a POS Insurance Agent:

Can sell only simple insurance plans

As a POS insurance agent, you can sell basic and easy-to-understand insurance policies. These include things like health insurance, term life plans, and accident coverage. You don’t have to deal with complex or customized plans, just the ones that are already approved and ready to sell.

Needs only basic training

To become a POSP agent, you don’t need to go through long or difficult courses. A short training program, usually around 15 hours, is enough. You can do it online, at your own pace, and learn everything you need to know to start selling.

Get certified quickly and easily

After you finish the short training, you will take a simple online test. Once you pass, you will get your certification right away. There is no long waiting period, and you don’t need to visit any office or attend tough exams.

Great for beginners or part-time work

This role is perfect if you are just starting out or looking for extra income. You can work from home, choose your own hours, and earn while learning. Many students, homemakers, and working professionals do this part-time.

No experience needed to start

You don’t need any past job experience to become a POS insurance agent. Whether you are new to insurance or have never done sales before, it is okay. The system is designed for beginners and helps you learn as you go.

It is a simple and smart way to become an agent quickly without going through a long process.

What is a Traditional Insurance Agent?

A traditional insurance agent is someone who is fully licensed to sell various types of insurance policies, including:

• Life insurance (including investment-linked plans)

• Health insurance with higher coverage

• Motor insurance

• Home insurance

• Business and commercial insurance

These agents go through a more detailed training and exam process and can offer a wider range of insurance solutions to individuals and companies.

Key Features of an Insurance Agent:

• Requires pre-licensing training and state exam

• Can sell advanced and customized insurance plans

• May work as a captive agent (for one company) or independently

• Can build long-term relationships and earn higher commissions

• Suitable for those who want to build a full-time career

If you're looking for a long-term, professional role in insurance, this is a good path to become insurance agent and grow steadily.

Training & Certification: What’s the Difference?

Here’s a simple comparison to help you understand:

Work Style & Earning Potential

POS Insurance Agent:

• Works mostly online or through mobile apps

• Earns smaller commissions per policy

• Can earn ₹10,000 to ₹30,000/month part-time

• Ideal for students, homemakers, or people wanting a side income

Insurance Agent:

• Can work in an office, on the field, or from home

• Earns higher commissions and long-term income

• Can make ₹50,000 to ₹1 lakh/month or more

• Great for those who want to become an insurance agent as a long-term career

Support and Flexibility

Both roles offer good support from insurance companies or agencies, including:

• Training sessions

• Digital tools to sell policies

• Marketing support

• Customer service helplines

However, POSP agents get more automation and ready-to-use tools, while insurance agents may have to handle more complex cases and client questions.

Which One Should You Choose?

That depends on your goals.

Choose to become a POSP agent or a POS insurance agent if:

• You want to start quickly

• You’re looking for part-time or side income

• You prefer simple products and online selling

Choose to become an insurance agent (traditional route) if:

• You’re planning a long-term full-time career

• You want to earn more and handle big policies

• You enjoy working closely with clients on complex needs

Why This Matters in 2025

Insurance is a growing field, and more people are looking for coverage every day. Whether it’s health, life, or home insurance, there’s a huge need for trusted agents.

The good news? You don’t need a degree or years of experience to become an agent. Whether you choose to be a POSP agent or a licensed insurance agent, you can build a strong and respected career.

Conclusion

Both insurance POS and traditional insurance agents play important roles in helping people secure their future. The right choice depends on how quickly you want to start, how much time you can give, and how much you want to grow.

If you are just getting started or want something flexible, becoming a POS insurance agent is a great way to test the waters. If you’re serious about making insurance your full-time career, then go ahead and become an insurance agent through the full licensing path.

Either way, you’re stepping into a field where you can make a real difference and earn while doing it.

Frequently Asked Questions (FAQs)

1. What is the difference between a POS insurance agent and a regular insurance agent?

A POS insurance agent or POSP agent can only sell simple, ready-made insurance products like health or term life insurance. A regular insurance agent can sell a wide range of plans, including more complex policies like business or investment-linked insurance.

2. Who can become a POS insurance agent?

Anyone above 18 years of age with a basic education can become a POS insurance agent. No prior experience is needed. You just need to complete a short training and pass a basic online test.

3. How is the process to become a POSP agent different from becoming a full insurance agent?

To become a POSP agent, you only need around 15 hours of training and a simple online test. To become an insurance agent through the traditional route, you must take longer training, pass a written exam, and apply for a full license.

4. Can a POSP agent earn as much as a traditional insurance agent?

POSP agents usually earn less per policy since they sell simpler products. But if they sell in large numbers, they can still earn well. Regular insurance agents earn higher commissions but may need more time to close each deal.

5. Is it better to become a POSP agent or an insurance agent?

If you want to start quickly, work part-time, or try out the field, then becoming a POS insurance agent is a great choice. If you're looking for a full-time career and long-term income, then it is better to become an insurance agent with a full license.

6. Can I switch from a POSP agent to a full insurance agent later?

Yes! Many people start as POSP agents to learn the basics and then upgrade to full agents. You can take additional training and pass the required exam later to expand your license.