Demystifying the role of fixed-salaried jobs vs. freelancing
Rajveer Hagjer
6 min read
I started a position as a Recruitment Consultant for an Insurance firm in India & as someone who has experienced the pressure to appear for examinations for a government position whilst witnessing how financially lucrative it can be in the corporate world, I must say, there is a great divide between our cultural understanding of how the two career paths differ and work for different individuals. After making a few thousand phone calls, exchanging a plethora of messages on multiple job portals, I want to share my experience in this industry.
Stigmas around freelance positions
Let me start off by addressing the pink elephant in the room, remote freelance position that I am advocating has been met with stigmatization, largely rooted in societal norms that equate job security with traditional, fixed salaried roles. I accepted this role because a salaried position is like limiting oneās earning potential and you donāt exercise control over your own time and youāre helping your employers make profits while they pay you peanuts. Familiar with this situation? Tap into the insurance sector and change your earning capacity.
Did you know professionals like Doctors, Chartered Accountants and Consultants frequently operate in a freelance capacity
They are earning more than their salaried counterparts while enjoying greater autonomy and flexibility.
A non-biased look at Job Security \
The job security of a fixed salary role can significantly limit oneās financial growth potential. 2. A fixed job often offers little space for significant income jumps whereas freelancing and independent advisory roles provide scalable income prospects based on performance and client volume.
3. This is an opportunity to earn exponentially more by serving more clients or selling higher-value policies is a lucrative opportunity. What does a fixed-salaried job signify?
Over generations we are seeing that a fixed-salaried job advocates a tradition of stability and predictability. While it has become the gold standard for acquiring a steady source of income, job security & benefits like health insurance, paid leaves, retirement plans; according to the Ministry of Labour & Employment, the average annual salary for full-time employees in 2020 was approximately ā¹4,20,000. Salaried roles often come with structured career paths that include promotions and annual raises ranging from 2ā5%.
Tapping into the potential for higher income with freelancing
Freelancing as a career choice is gaining a lot of attention due to its flexibility and potential for higher earnings. According to the āFreelancing in Indiaā report by Payoneer, the average hourly rate for Indian freelancers was around ā¹1,650 in 2020. The report also stated that 50% of freelancers earned more than their previous salaried roles. Not only that but freelancers have the freedom to choose projects and set their own schedules, that ends up improving oneās work-life balance. On the downside they must manage their own benefits such as health insurance, additional costs like marketing and self-employment taxes/expenses.
Making your mark in an ever-changing job environment
Choosing a career path between the two depends on individual goals and circumstances. While salaried jobs offer predictability and job security, freelancing offers potential to earn a higher income and to be the master of your own time. In addition, salaried positions often come with a hierarchical structure and has defined career path, that may take decades to realise. The Labour Bureau under the Ministry of Labour and Employment informs that annual salary increases for full-time employeesā range between 2ā5% with more increments seen in sectors of technology, banking and healthcare. This article is to demystify the stigma around a freelance role and examining the data-driven insights and understanding various aspects of job security, income potential, work-life balance, and most importantly, personal growth.
According to the Ministry of Labour and Employment, the average annual salary for full-time ranges from ā¹3,00,000 to ā¹8,00,000. that being said, let me share a golden opportunity with you, the Indian Insurance Premium volume stood at $127 Bn i.e., equivalent to ā¹89,38,62,46,55,41,750.10.
The Indian Insurance sector is massive, both in market size and cash flows. As the latest data presents India stands at 3.71% of the GDP with a life insurance density of ā¹4,060 per person. This industry is growing at break-neck speed, driven by rising income levels, increased awareness and the governmentās push for a broader coverage. Many life insurance companies are attempting to capture a share of this market; this is a great opportunity for Life Insurance Advisors. Whatr are you waiting for? Letās milk this cash cow!
Financial Opportunities: By operating on a commission-based income, a Life Insurance Advisor can typically earn a percentage of the premium paid by their clients. The industry standard for commissions can range from 25% to 40%. I present to you a pay structure where you start with 25%-35% and can higher as you progress in this Life Insurance Advisor Role. DM to know more.
Transitioning to the Insurance Sector is a simple process. 1. Youāll have to appear for the (Insurance Regulatory and Development Authority of India) IRDAI examinations where you will have to pay ā¹750 to attempt the exam, there are 50 questions and to pass you need to get answer only 15 correctly. And we offer 25 hours of training to equip you with the necessary skills and knowledge to thrive in the field.
Let me explain how you can earn ā¹1,00,000 a month or the same amount in a shorter duration with the insurance products that you will brandish.
1. Getting started: In the first few weeks, a life insurance advisor focuses on building a client base by networking, attending seminars, meetings, etc. If you assume an average monthly premium of ā¹10,000 per client. And when you secure 10 clients in a month at a 10% commission rate it would generate =10 clients*ā¹10,000*10%= ā¹1,00,000.
2. Growing as a Life Insurance Advisor becomes easier as the advisorās network grows. Assume a growth of 50 clients per month with varying premium sizes, leading to an average monthly commission of ā¹50,000.
3. Maturing as a Life Insurance Advisor can be achieved by maintaining relationships and ensuring renewals where you will benefit from recurring commissions.
The financial Impact of the Indian Insurance Sector
Due to the sheer volume of money circulating within the Indian Insurance Sector a Life Insurance Advisor can tap into a huge potential for earning. Life Insurance Premiums were at ā¹5.73 lakh crore in 2020ā21. What Iām advocating is this is your chance to carve out a significant income and elevate your career in this booming Insurance Sector.
The time to act is now. By leveraging your expertise and harnessing the power of this thriving industry, you can secure a significant income and establish yourself as a key player in the market. Donāt miss out on this chance to capitalize on one of the most dynamic sectors in India today.
Message me and Iāll show you the ropes on how to unlock your potential ā your future in the booming insurance sector awaits!