meet bharat parekh & ravi jethani: lic agents ... - join lic
TRANSCRIPT
3/15/2014 Meet Bharat Parekh & Ravi Jethani: LIC agents with
bigger pay than chairman DK Mehrotra - Economic Times
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 1/4
Info PR: 5 I: 1,580,000 L: 1 LD: 59391 I: 42 Rank: 104 Age: March 2, 2011 I: n/a Tw: 39 l: 57 +1: 6 whois source Rank:
Tags: Ravi Jethani | Life Insurance Corporation | life insurance | LIC | investment banker | Fund manager |
Bombay stock exchange | Bharat Parekh
Tweet
Recommend
StumbleUpon
Submit
Meet Bharat Parekh & Ravi Jethani: LIC agents with bigger pay than chairman DK Mehrotra Shilpy Sinha, ET Bureau May 15, 2013, 10.37AM IST
ET profiles two persons of humble origins who found their
calling in insurance serendipitously, faced the music for
their unorthodox career choice, but finally laughed their way
to the bank with a bigger pay than the LIC chairman
himself...
While still a teenager, at the age of 17, Bharat Parekh
risked being an outcast among his college mates. Not that
he indulged in anti-social activities, nor were his friends
caste-conscious, all he did was don the role of an agent for
the Life Insurance Corporation of India (LIC). It was for Rs
300 a month in 1986 that Parekh sacrificed the charm of
college days. Not that he grew up money minded, but he
too was faced with the bane most middle class boys still face
in India — getting their sisters married respectably.
IndiaFirst Term Plan www.indiafirstlife.com/
Cover Of 50 Lakh And Save
Tax. Apply Now!
Cover@Rs. 543/M
1
Parekh, who missed out on watching matinee shows and playing cricket during his youth, is now a
millionaire who can afford most luxuries of life. As an agent, his annual income is over Rs 4 crore, around five
times more than the Rs 87 lakhs that LIC chairman DK Mehrotra took home last year. The sweat and toil
behind selling 1,000 odd policies a year, helped Parekh marry his five sisters off in accordance with the
demands of Indian tradition.
But the journey was a rough one. "I was the youngest in the family after five sisters... I needed a job to
financially support my family,'' says Parekh. "My sisters asked me if there is anything else I could do. My
friends in college stopped talking to me.
An LIC agent was looked down upon and the perception was that only those who had nothing else to do in
life became LIC agents.'' Even getting recruited as an agent was difficult given the minimum age for the job
was 21. But Parekh managed to find work under a development officer at 18 and has never had to look back
since then.
RELATED ARTICLES
June 1, 2013
at LIC
LIC not a day trader, but a long-term player: DK
Mehrotra...
Life Insurance Corporation
Home News Markets IPO Mutual Funds Tech Jobs Opinion Features Blogs Slideshows ET NOW ET Speed
ET Wealth Fixed Deposits Insurance Art Loan Centre Credit Cards Tax Savers NRI Services Savings Centre Calculators
Insurance news Analysis
Personal Finance
(ET profiles two persons…)
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 2/4
He sells around 1,000 policies a year, the worth of a policy being Rs 2 lakh on an average, and manages to
generate a premium of Rs 200 crore for the corporation — the highest generated by any agent in India.
Even as college mates looked down on him and LIC was still taboo for the middle class, finding a prospective
bride was an uphill task for Parekh. "I had to produce my Income Tax returns to prove to my potential father-
in-law that I earn enough to take care of his daughter and bring up a family,'' says Parekh.
We are a happy family now. But building one was probably more difficult than convincing someone to buy an
insurance policy, says Parekh.
Married to Babita, Parekh has no intention to abandon his career of three decades. "It is the world's best
profession,'' says Parekh citing the independence it provides and the sky-high opportunity to earn.
Yet, not all LIC agents are as successful as Parekh. What then, is his success formula? "Money is not
everything," says Parekh. "I try to understand the family and educational background of a person and then
suggest which policy he or she should buy.''
Indeed, LIC agents also play the role of a wealth manager, or a fund manager, for many who are financially
illiterate.
"I converted a term plan into a pension plan for a rich, unschooled, widow to ensure her a regular income.
Money does not stay with anyone so it is necessary to have a regular income.''
HDFC Life™ Term Plan www.hdfclife.com/Term-Insurance
Premium Starts at Just Rs. 2000/yr. No Medicals upto 75L Cover* Buy Now
Some learning for a man who dropped out of college for Rs 300 a month!
Ravi Jethani
It is difficult to give up addictions. But once done, life
takes a turn for the better and Ravi Jethani can vouch for that.
Fourty two year-old Jethani forsook his stock broking business following wild swings in 2002 when he realised
he was staring at steep losses. It was in 2002 that Jethani gave up his job as a sub-broker at Mehta & Vakil, a
member of the Bombay Stock Exchange. That was after the technology bubble burst, taking with it many
broking firms and families.
What began as a part-time role has come to dominate his life. The sub-broker who sold insurance policies to
kill time after stock broking closed at 3.30 pm, made that into a full-time vocation once he realised how reliable
and steady the business is, in comparison to stock markets.
It is glamourous to be a stock broker, but not an LIC agent. It was difficult to switch to insurance, but the
stability made the sacrifice worthwhile. "My wife did not like the idea initially,'' says Jethani who lives in
Mumbai's posh Pedder Road — home to some of the country's richest. "She even asked what's wrong with
me. Now, thanks to my success, she trusts my gut.''
Corporate Strategies
Billionaire Gautam Thapar puts Crompton Greaves up for sale Part of family's heritage for as long as India has
been independent, the power transmission and
distribution co is the biggest unit of Thapar's
$4-bn Avantha Group.
Markets on a high: Time ripe for 1st-time investors to enter?
Want to gamble big on elections? Top 10 stock picks
World of Cars & Bikes
Hero Splendor iSMART with start- stop motor at Rs 47,250 Hero has launched the Splendor iSMART with
i3S technology. Hero says that it has applied for
patenting this tech. Take a look at the bike's
salient features...
Six sedans Hyundai Xcent will take on
Xcent sedan launched at Rs 4.66 L, to take on Dzire & Amaze
SPOTLIGHT
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 3/4
10 best tax-saving investments
Hyundai Xcent sedan launched at a starting price of Rs 4.66 lakh
Want to withdraw from your provident fund account? Here's how!
India's first e-reader Wink unveiled, supporting
15 languages
account? Here's how!
not raised
amid market woes
candidates; Yeddyurappa gets a ticket
Flipkart vs Snapdeal: Two stars of e-
commerce consistency and confidence
Most Infosys staff to get 5-7% pay hike;
seniors, onsite being finalised 26 Feb 2014
United Bank of India faces auditing,
corporate governance probes 03 Mar 2014
Infosys to dole out promotions every quarter
and a 5-7 per cent salary… 27 Feb 2014
Flipkart vs Snapdeal: Two stars of e-
commerce consistency and confidence 06 Mar
2014
price Nikkei Asian Review
Decisions
Skies Ahead DealCloserBlog
Retirement? Nerd Wallet
Recommended by
More than a decade after choosing life insurance as a career, Jethani earns over Rs 3 crore a year in
commission. But that does not come easily. To earn that, he attends, on an average, 2.5 meetings a day and
just one in ten meetings leads to a policy sale. That's probably worse than an investment banker's mergers &
acquisition strike rate.
Get 48Lac @ Rs.4.4*K p.m. policybazaar.com/2014_Investments
Best Investment Plans For 2014, Don't Miss a Chance Compare Quotes!
1 | 2 | Next
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 4/4
© 2 01 4 Ben n ett , Colem a n & Co. Ltd. A ll r ig h ts r eser v ed In dex by Key w or d|In dex by Da te
Readers' opinions (121)
Saurabh (Ind)
They worked hard to achieve success but it remains a fact that in India insurance policies are being sold as
money doubling investment. Very few people really understand their policy's complicated terms and conditions, while the agent talks falsely how the money will double or triple at maturity within a few years. Thousands of
policies lapse every year and all the invested money is appropriated by the insurance company.
12 Jun, 2013 11:19 PM kumar gaurav (Ranchi)
he is an inspirational personality for current gen who are herding for a general goal.
29 May, 2013 07:34 PM
AMARENDRASRIVASTVA SRIVASTVA (MUZAFFARPUR)
THESE TWO AGENTS ARE EXCEPTION AND NOT THE RULE.LIC AGENTS HAVE PROCURED BUSINESS FOR
THEIR PRINCIPAL BY JUST MISSELLING THE PRODUCT.HAD THERE BEEN NO INCOME TAX BENEFIT,LIC WOULD NOT HAVE EVEN ONE TENTH OF ITS PRESENT SIZE.EARLIER,OVER NE THIRD OF POLICIES USED TO LAPSE WITHIN 3 YEARS AND THERE WAS NO REFUND OF ANY AMOUNT.THE MONEY WAS SHARED
BETWEEN AGENTS AND DEVELOPMENT OFFICERS AND LIC ITSELF.
26 May, 2013 04:41 PM
Mahesh Ved (Mumbai)
23 May, 2013 04:35 PM Veejhay Shaah (Mumbai, Maharashtra)
It's great journey Bharat, we have travelled together for MDRT Conference in USA - Atlanta in 1997
26 May, 2013 04:42 PM Mahesh Ved (Mumbai) replies to Veejhay Shaah
DEFINATELY DESERVES CONGRATULATIONS.
» READ ALL COMMENTS
w w w .econ om ict im es.com Feedba ck|Pr iv a cy Policy|Ter m s of Use|A dv er t ise w ith u s
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 1/4
Info PR: 5 I: 1,580,000 L: 1 LD: 59391 I: 42 Rank: 104 Age: March 2, 2011 I: n/a Tw: 39 l: 57 +1: 6 whois source Rank:
Tags: Ravi Jethani | Life Insurance Corporation | life insurance | LIC | investment banker | Fund manager |
Bombay stock exchange | Bharat Parekh
Tweet
Recommend
StumbleUpon
Submit
Meet Bharat Parekh & Ravi Jethani: LIC agents with bigger pay than chairman DK Mehrotra Shilpy Sinha, ET Bureau May 15, 2013, 10.37AM IST
ET profiles two persons of humble origins who found their
calling in insurance serendipitously, faced the music for
their unorthodox career choice, but finally laughed their way
to the bank with a bigger pay than the LIC chairman
himself...
While still a teenager, at the age of 17, Bharat Parekh
risked being an outcast among his college mates. Not that
he indulged in anti-social activities, nor were his friends
caste-conscious, all he did was don the role of an agent for
the Life Insurance Corporation of India (LIC). It was for Rs
300 a month in 1986 that Parekh sacrificed the charm of
college days. Not that he grew up money minded, but he
too was faced with the bane most middle class boys still face
in India — getting their sisters married respectably.
IndiaFirst Term Plan www.indiafirstlife.com/
Cover Of 50 Lakh And Save
Tax. Apply Now!
Cover@Rs. 543/M
1
Parekh, who missed out on watching matinee shows and playing cricket during his youth, is now a
millionaire who can afford most luxuries of life. As an agent, his annual income is over Rs 4 crore, around five
times more than the Rs 87 lakhs that LIC chairman DK Mehrotra took home last year. The sweat and toil
behind selling 1,000 odd policies a year, helped Parekh marry his five sisters off in accordance with the
demands of Indian tradition.
But the journey was a rough one. "I was the youngest in the family after five sisters... I needed a job to
financially support my family,'' says Parekh. "My sisters asked me if there is anything else I could do. My
friends in college stopped talking to me.
An LIC agent was looked down upon and the perception was that only those who had nothing else to do in
life became LIC agents.'' Even getting recruited as an agent was difficult given the minimum age for the job
was 21. But Parekh managed to find work under a development officer at 18 and has never had to look back
since then.
RELATED ARTICLES
June 1, 2013
at LIC
LIC not a day trader, but a long-term player: DK
Mehrotra...
Life Insurance Corporation
Home News Markets IPO Mutual Funds Tech Jobs Opinion Features Blogs Slideshows ET NOW ET Speed
ET Wealth Fixed Deposits Insurance Art Loan Centre Credit Cards Tax Savers NRI Services Savings Centre Calculators
Insurance news Analysis
Personal Finance
(ET profiles two persons…)
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 2/4
He sells around 1,000 policies a year, the worth of a policy being Rs 2 lakh on an average, and manages to
generate a premium of Rs 200 crore for the corporation — the highest generated by any agent in India.
Even as college mates looked down on him and LIC was still taboo for the middle class, finding a prospective
bride was an uphill task for Parekh. "I had to produce my Income Tax returns to prove to my potential father-
in-law that I earn enough to take care of his daughter and bring up a family,'' says Parekh.
We are a happy family now. But building one was probably more difficult than convincing someone to buy an
insurance policy, says Parekh.
Married to Babita, Parekh has no intention to abandon his career of three decades. "It is the world's best
profession,'' says Parekh citing the independence it provides and the sky-high opportunity to earn.
Yet, not all LIC agents are as successful as Parekh. What then, is his success formula? "Money is not
everything," says Parekh. "I try to understand the family and educational background of a person and then
suggest which policy he or she should buy.''
Indeed, LIC agents also play the role of a wealth manager, or a fund manager, for many who are financially
illiterate.
"I converted a term plan into a pension plan for a rich, unschooled, widow to ensure her a regular income.
Money does not stay with anyone so it is necessary to have a regular income.''
HDFC Life™ Term Plan www.hdfclife.com/Term-Insurance
Premium Starts at Just Rs. 2000/yr. No Medicals upto 75L Cover* Buy Now
Some learning for a man who dropped out of college for Rs 300 a month!
Ravi Jethani
It is difficult to give up addictions. But once done, life
takes a turn for the better and Ravi Jethani can vouch for that.
Fourty two year-old Jethani forsook his stock broking business following wild swings in 2002 when he realised
he was staring at steep losses. It was in 2002 that Jethani gave up his job as a sub-broker at Mehta & Vakil, a
member of the Bombay Stock Exchange. That was after the technology bubble burst, taking with it many
broking firms and families.
What began as a part-time role has come to dominate his life. The sub-broker who sold insurance policies to
kill time after stock broking closed at 3.30 pm, made that into a full-time vocation once he realised how reliable
and steady the business is, in comparison to stock markets.
It is glamourous to be a stock broker, but not an LIC agent. It was difficult to switch to insurance, but the
stability made the sacrifice worthwhile. "My wife did not like the idea initially,'' says Jethani who lives in
Mumbai's posh Pedder Road — home to some of the country's richest. "She even asked what's wrong with
me. Now, thanks to my success, she trusts my gut.''
Corporate Strategies
Billionaire Gautam Thapar puts Crompton Greaves up for sale Part of family's heritage for as long as India has
been independent, the power transmission and
distribution co is the biggest unit of Thapar's
$4-bn Avantha Group.
Markets on a high: Time ripe for 1st-time investors to enter?
Want to gamble big on elections? Top 10 stock picks
World of Cars & Bikes
Hero Splendor iSMART with start- stop motor at Rs 47,250 Hero has launched the Splendor iSMART with
i3S technology. Hero says that it has applied for
patenting this tech. Take a look at the bike's
salient features...
Six sedans Hyundai Xcent will take on
Xcent sedan launched at Rs 4.66 L, to take on Dzire & Amaze
SPOTLIGHT
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 3/4
10 best tax-saving investments
Hyundai Xcent sedan launched at a starting price of Rs 4.66 lakh
Want to withdraw from your provident fund account? Here's how!
India's first e-reader Wink unveiled, supporting
15 languages
account? Here's how!
not raised
amid market woes
candidates; Yeddyurappa gets a ticket
Flipkart vs Snapdeal: Two stars of e-
commerce consistency and confidence
Most Infosys staff to get 5-7% pay hike;
seniors, onsite being finalised 26 Feb 2014
United Bank of India faces auditing,
corporate governance probes 03 Mar 2014
Infosys to dole out promotions every quarter
and a 5-7 per cent salary… 27 Feb 2014
Flipkart vs Snapdeal: Two stars of e-
commerce consistency and confidence 06 Mar
2014
price Nikkei Asian Review
Decisions
Skies Ahead DealCloserBlog
Retirement? Nerd Wallet
Recommended by
More than a decade after choosing life insurance as a career, Jethani earns over Rs 3 crore a year in
commission. But that does not come easily. To earn that, he attends, on an average, 2.5 meetings a day and
just one in ten meetings leads to a policy sale. That's probably worse than an investment banker's mergers &
acquisition strike rate.
Get 48Lac @ Rs.4.4*K p.m. policybazaar.com/2014_Investments
Best Investment Plans For 2014, Don't Miss a Chance Compare Quotes!
1 | 2 | Next
http://articles.economictimes.indiatimes.com/2013-05-15/news/39282224_1_lic-agents-dk-mehrotra-life-insurance-corporation 4/4
© 2 01 4 Ben n ett , Colem a n & Co. Ltd. A ll r ig h ts r eser v ed In dex by Key w or d|In dex by Da te
Readers' opinions (121)
Saurabh (Ind)
They worked hard to achieve success but it remains a fact that in India insurance policies are being sold as
money doubling investment. Very few people really understand their policy's complicated terms and conditions, while the agent talks falsely how the money will double or triple at maturity within a few years. Thousands of
policies lapse every year and all the invested money is appropriated by the insurance company.
12 Jun, 2013 11:19 PM kumar gaurav (Ranchi)
he is an inspirational personality for current gen who are herding for a general goal.
29 May, 2013 07:34 PM
AMARENDRASRIVASTVA SRIVASTVA (MUZAFFARPUR)
THESE TWO AGENTS ARE EXCEPTION AND NOT THE RULE.LIC AGENTS HAVE PROCURED BUSINESS FOR
THEIR PRINCIPAL BY JUST MISSELLING THE PRODUCT.HAD THERE BEEN NO INCOME TAX BENEFIT,LIC WOULD NOT HAVE EVEN ONE TENTH OF ITS PRESENT SIZE.EARLIER,OVER NE THIRD OF POLICIES USED TO LAPSE WITHIN 3 YEARS AND THERE WAS NO REFUND OF ANY AMOUNT.THE MONEY WAS SHARED
BETWEEN AGENTS AND DEVELOPMENT OFFICERS AND LIC ITSELF.
26 May, 2013 04:41 PM
Mahesh Ved (Mumbai)
23 May, 2013 04:35 PM Veejhay Shaah (Mumbai, Maharashtra)
It's great journey Bharat, we have travelled together for MDRT Conference in USA - Atlanta in 1997
26 May, 2013 04:42 PM Mahesh Ved (Mumbai) replies to Veejhay Shaah
DEFINATELY DESERVES CONGRATULATIONS.
» READ ALL COMMENTS
w w w .econ om ict im es.com Feedba ck|Pr iv a cy Policy|Ter m s of Use|A dv er t ise w ith u s