Life And Health Insurance: Is Your License Active?

If you're considering a career in insurance, you'll need to get licensed. The type of insurance policies you want to sell will dictate the type of license you need. For example, if you want to sell life insurance, you'll need a Life Insurance License. This license allows you to sell life insurance products, such as annuities and term or cash value life insurance, within your state. To obtain a life insurance license, you must be at least 18 years old, complete any required prelicensing education, pass a state licensing exam, and meet other requirements, such as passing a background check.

Some states offer a combined Life and Health Insurance License, which enables you to sell health insurance policies in addition to life insurance. With this license, you can explain, sell, and write health insurance products, such as HMOs, PPOs, and HSAs, in addition to life insurance products. To obtain a health insurance license, you must meet state-specific requirements, pass the state exam, get fingerprinted, and complete any required continuing education classes.

It's important to note that each state has different qualifications and requirements for insurance licenses, so be sure to check the specific rules and regulations for the state in which you plan to obtain your license.

What is a Life and Health Insurance License?

A Life and Health Insurance License is one of the two basic insurance licenses that qualify you to sell life and/or health insurance in your respective state. The other basic insurance license is the Property and Casualty License.

The Life and Health Insurance License is generally tied very closely with the Health Insurance license, with most people choosing to get both. The license is granted upon the successful passing of a specific state’s exam and allows the recipient to solicit and build a book of business of health and life insurance within that state.

The Life Insurance License distinguishes you as an insurance producer qualified to sell life insurance products within your state. Having your life insurance license grants you the ability to explain, sell, and write this line of business.

The Health Insurance License allows you to write health insurance products offered within your state. With a health insurance license, you are recognized as qualified to explain, sell, and write health insurance products.

You can get your health insurance license independently of your life insurance license, and vice versa. However, most new agents elect to get them at the same time based on their opportunity to write both lines of business for the same client.

States can also group life and health lines together into a single pre-license course and exam. It is recommended to check with the particulars of your state to confirm what securing each license permits you to sell.

How do I get my life insurance license?

To get a life insurance license, you must meet the basic eligibility requirements, complete pre-licensing education, pass the state insurance licensing exam, pass a background check, and apply for your life insurance license.

Eligibility Requirements

To be eligible for a life insurance license, you must be at least 18 years old, have no fraud or felony charges, not owe any federal or state income taxes, and be able to pass a background check. Some states may have additional requirements, such as not having past-due child support.

Pre-licensing Education

All states require the completion of pre-licensing education before taking the state insurance licensing exam. The number of hours and the cost of this education vary by state. However, it is important to note that a few states do not require pre-licensing education, so it is essential to check the requirements of the specific state in which you plan to obtain your license.

State Insurance Licensing Exam

After completing the pre-licensing education, you must pass the state insurance licensing exam for life insurance or life and health insurance. The exam can be challenging due to its broad range of topics, and the passing scores vary by state. The cost of taking the exam typically ranges from $40 to $150.

Background Check

In addition to the exam, you must also undergo and pass a background check, which may include fingerprinting. The specific process and requirements for the background check depend on the state.

Applying for the License

Once you have passed the exam and background check, you can apply for your life insurance license by submitting an application to your state's department of insurance regulation. There is typically a licensing fee associated with this application, which varies by state. After submitting your application, the insurance regulation department will review it, and if approved, you will receive your life insurance license.

What is the difference between a life insurance license and a life and health insurance license?

To become a life insurance agent, you need to obtain a life insurance license. This will allow you to sell life insurance products within your state. However, if you want to expand your services to include health insurance, you will need to obtain a life and health insurance license.

The life insurance license permits you to sell annuities, term, and cash value (whole or universal) life insurance. It is important to note that the specific products you can sell may vary by state. With this license, you can work as a captive agent for a single insurance company or as an independent agent selling products from multiple companies.

On the other hand, the life and health insurance license enables you to sell all the products covered by the life insurance license, plus health insurance policies. These additional policies provide protection for medical expenses, loss of income due to disability, and the need for long-term care.

Some states, like Alabama and Florida, offer the option to earn a separate life insurance license, health insurance license, or a combined life and health insurance license, each requiring a separate exam. Other states, like North Carolina, have separate licenses for life and health but do not offer a combination option, while some states, like Missouri, only offer a combined life and health insurance license. Therefore, it is crucial to check with your specific state to understand the requirements and options available to you.

To obtain either license, you will generally need to meet age requirements (at least 18 years old), complete any necessary prelicensing education, pass a state licensing exam, and pass a background check. The cost and specific requirements of these steps may vary depending on the state in which you plan to become licensed.

What are the requirements for taking the life insurance exam?

The requirements for taking the life insurance exam vary from state to state. However, there are some common prerequisites for the Life Insurance License Exam. These include:

• Pre-licensing education: Some states require pre-licensing education courses before taking the exam. The number of hours for these courses varies, but they generally cover key concepts in insurance and state-specific regulations. For example, California requires 20 hours of pre-licensing education for a life, accident, and health license, while Georgia requires 40 hours for a life, accident, and sickness license.
• Initiating your application: Most states require you to initiate the licensing application process before taking the exam. This may include providing personal information, such as your full legal name and social security number.
• Providing fingerprints: Many states require fingerprinting as part of the licensing process. This is typically done electronically and is used for a criminal background check.
• Background check: A background check is often required to ensure candidates meet the necessary standards for selling insurance.
• Exam registration: You will usually need to register for the exam in advance, providing details such as your name, address, and preferred exam date and location.

It is important to check the specific requirements for the state in which you plan to take the life insurance exam, as the process can vary significantly.

How do I pass the life insurance exam?

Passing the life insurance exam is a requirement to get your life insurance license and pursue a career in insurance. Here are some tips to help you pass the exam:

Know the Requirements and the Exam Outline

Firstly, it is important to know the requirements and exam outline specific to your state. Each state has its own insurance exam, and while the overarching topics covered are similar, there are some variations. Check with your state's department of insurance to understand the requirements and get the exam outline. This will help you understand the topics that will be covered and how they will be weighted on the exam.

Create a Study Plan

It is recommended to spend around 35 to 40 hours studying for the life insurance exam. Instead of cramming, create a realistic study plan that spreads out your preparation over several weeks. Focus more on the sections with a higher weightage or a larger number of questions.

Prepare and Practice

Review courses, reading materials, and practice exams can help you prepare for the life insurance exam. Practice exams, in particular, will help you assess your understanding of the material and identify areas that need further attention. It is also beneficial to familiarize yourself with the exam centre to ensure you know how to get there and what to expect on the day of the exam.

Know the Exam Process

The life insurance exam is a computer-based, multiple-choice exam. It consists of around 100-150 questions, and you will typically have 2.5 to 3 hours to complete it. Remember that there is no penalty for wrong answers, so it is better to guess than to leave a question blank. During the exam, read each question carefully, answer the ones you are confident about first, and return to the more challenging questions later.

Stay Calm and Focused

Stay calm during the exam, and read each question carefully before answering. Focus only on the information provided in the question and avoid making assumptions. If you find yourself stuck on a question, move on, and come back to it later.

Frequently asked questions