Becoming A Life Insurance Agent: Steps To Success

Life insurance agents sell policies that provide financial security for families after the passing of a loved one. It is a highly competitive industry with a high burnout rate, but it can be a rewarding career for those with the right skills and temperament. To become a life insurance agent, you'll need to earn a high school diploma or GED, complete pre-licensing education, pass a licensing exam, and apply for your license. Some states may also require a background check and fingerprinting. The entire process can take one to three months, but it may be longer if your state requires extensive pre-license education.

Research state-specific licensing requirements

To become a life insurance agent, you need to obtain a life insurance license. The specific requirements for obtaining a license vary from state to state. Here are some common steps and considerations to keep in mind when researching the licensing requirements for your state:

Pre-Licensing Education:

While not required in all states, many states mandate that you complete a pre-licensing education course before sitting for the licensing exam. The required hours for these courses vary, with some states requiring 20 hours of pre-license education for a life insurance license, and others requiring more hours or additional education for a joint life, accident, and health license. Online courses through third-party financial education companies are often available to fulfill this requirement.

License Application:

Once you have completed any required pre-licensing education, you can proceed to fill out the application for your insurance sales license. This application often needs to be submitted through the National Insurance Producer Registry (NIPR), which processes applications in all 50 states. Be sure to complete the application thoroughly and accurately, as omitting information can impact your approval. Some states require that you pass the licensing exam before applying for a license, and your exam results will automatically be sent to the relevant state agency.

Fingerprinting and Background Check:

Due to the sensitive nature of a life insurance agent's work, most states require fingerprinting and a background check as part of the licensing process. You can usually find instructions for scheduling your fingerprinting appointment on your state's insurance licensing website or through a third-party company. The fingerprinting fee is typically paid by the applicant and can range from $35 to $75.

Licensing Exam:

Passing the state licensing exam is a critical step in becoming a licensed life insurance agent. The exam will cover topics such as state insurance regulations, general insurance concepts, specific policies applicable to life insurance, annuities, tax considerations, and requirements to maintain a license. The exam structure and content can vary by state, so be sure to check with your state for a copy of the exam content outline. Completing a pre-license education course can be extremely helpful in preparing for the exam, even if it is not required by your state.

Application Review and License Issuance:

After completing all the required steps, your application will be reviewed, along with your background check. This review process can take a few days to several weeks, depending on your state. Once your application is approved, you will receive your life insurance sales agent license, typically via email or by printing it from your state's website. Keep your license number and National Producer Number (NPN) handy when applying for jobs in the insurance industry.

Remember, it is essential to carefully review the specific requirements and procedures for your state, as the process can vary significantly. The above information provides a general overview of common steps and considerations, but each state may have unique mandates.

Complete pre-licensing education

To become a life insurance agent, you'll need to obtain a life insurance license. While the specific requirements vary by state, most states require you to complete a pre-licensing education course before you can pursue your insurance license. This course will equip you with the necessary tools to prepare for your life insurance exam.

The required hours for the pre-licensing course vary depending on the state and the type of insurance license you're seeking. For example, in New York, a Life, Accident and Health Agent license requires 40 hours of pre-licensing education, while a Life Agent license only requires 20 hours. In California, you need 20 hours of pre-license education for a life insurance license, and this increases to 40 hours for a joint life, accident, and health license.

You can complete the pre-licensing education course online through a third-party financial education company, which offers flexibility for busy professionals. The course will cover state insurance regulations, general insurance concepts and terms, specific policies applicable to life insurance, annuities, tax considerations, and requirements to maintain an insurance sales agent license.

Even in states where pre-licensing education is not required, such as Nevada, it is highly recommended to complete a prep course to increase your chances of passing the licensing exam. These courses offer various features, such as live tutoring, study calendars, and practice exams, which can enhance your understanding of the material and boost your confidence.

When choosing a pre-licensing education course, consider factors such as flexibility, price, and the reputation of the course provider. Ensure that the course is tailored to your specific state's requirements and exam content.

Pass the state licensing exam

To pass the state licensing exam and become a life insurance agent, you must prepare and study for your life insurance exam. This is a crucial step in becoming a life insurance agent, as it will test your knowledge of life insurance products, procedures, and state regulations. Here is a detailed guide to help you pass:

Understanding the Exam:

Before you begin preparing for the exam, it is essential to understand its structure and content. The life insurance exam is typically divided into two sections: a general life insurance section and a state-specific section. The general section covers topics such as types of life insurance, policy provisions, options, and general life insurance topics. The state-specific section focuses on your state's rules and regulations, including licensing requirements, contract language, and disclosures.

Pre-licensing Education:

Many states require pre-licensing education, which can be completed through a third-party financial education company. The required hours vary by state. For example, California mandates 20 hours of pre-license education for a life insurance license, while a joint life, accident, and health license require 40 hours. Even if your state does not mandate pre-licensing education, investing in a study course can significantly improve your chances of passing the exam on your first attempt.

Study Schedule and Strategy:

Developing a structured study schedule is vital for exam success. Consider your professional and personal commitments, and allocate specific blocks of time each day for studying. Most courses cover around 20 hours of material, so it's important to dedicate a couple of hours daily to pre-license education, along with additional time for practice questions and tests. You can follow a four-week study plan, with each week focusing on different aspects:

• Week 1: Focus on completing the course modules or attending an in-person education course.
• Week 2: Answer practice questions, take practice tests, and quiz yourself on related vocabulary.
• Week 3: Take a mock life insurance exam in a test-like environment. This will help you identify areas that need further improvement.
• Week 4: During this week, continue studying but avoid overwhelming yourself. Ensure you get enough rest, eat nutritious meals, and stay physically active to maintain your well-being before the exam.

Exam Registration and Requirements:

To register for the exam, you will need to provide personal information, including your full legal name, social security number, address, phone number, and email address. You will also need to select your desired exam date and testing location. It is recommended to register in advance, as test dates are limited. Additionally, you will need to present a government-issued photo ID and your exam admission ticket (if applicable in your state) on the day of the test.

Exam Day:

Arrive at the testing center at least 30 minutes early. You will be required to present two forms of identification, with at least one including a photo and both bearing a visible signature. Electronic devices and valuables are not permitted in the testing room, so it is best to leave them at home or in your vehicle. You will have the opportunity to complete a computer tutorial before your timed exam begins.

Exam Results and Next Steps:

After completing the exam, you will receive an official score report indicating whether you passed or failed. If you pass, your score will be reported to your state and added to your life insurance license application. The next steps in the licensing process may include fingerprinting, a background check, and final application submission. If you don't pass the exam, you can use the feedback on your weaker sections to guide further study before retaking the exam.

Get fingerprinted and complete a background check

To become a life insurance agent, you'll need to meet professional licensing requirements, including getting fingerprinted and completing a background check. Here's a detailed guide on what you need to do:

Fingerprinting:

• Fingerprinting is typically done by a third-party company or vendor, and you'll be responsible for paying the fingerprinting fee, which usually ranges from $35 to $75.
• In some states, like Nevada, you'll need to choose an approved fingerprinting vendor from the state's insurance website. Your vendor will then send your fingerprints directly to the relevant state department for processing.
• The process for submitting fingerprints may vary by state. Some states may have physical locations where you can go to have your fingerprints taken, while others may allow electronic fingerprinting through law enforcement agencies.
• Make sure to keep the confirmation receipt from the fingerprint vendor, as you'll need to submit it with your license application.

Background Check:

• The background check is a standard part of the life insurance agent licensing process. It is done to ensure that individuals working in this sensitive area are trustworthy and qualified.
• Most states will run a basic state-level background check, checking for things like pending litigation or criminal history.
• Some states may require a more in-depth background check, such as a criminal background check using your fingerprints, or an FBI background check, which is the most comprehensive search.
• Any misdemeanors or felonies on your record may impact your ability to obtain a license, so it's important to be transparent and honest in your application. If you have concerns, you can contact your state's insurance regulatory body for guidance.
• Keep in mind that insurance carriers or agencies may also require their own background checks as part of their due diligence, even if your state doesn't require one.

Remember that the specific requirements and processes may vary depending on your state, so be sure to check with your state's insurance department for the most accurate and up-to-date information.

Submit your insurance license application

To become a life insurance agent, you will need to obtain a license. The requirements for this vary depending on the state, so be sure to check the specific criteria for your state. Here is a step-by-step guide on how to submit your insurance license application:

Step 1: Complete Pre-License Education

Before pursuing your insurance license, many states require that you show completion of a pre-licensing education course. This can often be done online through a third-party financial education company. The required hours of your course will vary by state. For example, California requires 20 hours of pre-license education for a life insurance license, whereas a joint life, accident, and health license require 40 hours. There are some states, such as Texas and Virginia, that do not require a pre-license education course.

Step 2: Complete a License Application

Once you have a completion certificate documenting your required hours of pre-license education, you can start the application process for your insurance sales license. Be sure to complete it thoroughly and accurately. Leaving out information, such as a criminal record, will impact your approval. Having a criminal record does not automatically disqualify you, but failing to disclose it will.

Step 3: Get Fingerprinted and Complete a Background Check

Due to the sensitive nature of a life insurance agent's work, states require that you submit to a background check and have your fingerprints on file. You can find directions on how to schedule your fingerprinting appointment on your state's website. Fingerprinting is completed by a third-party company, and the applicant will need to pay the fingerprinting fee, which typically ranges from $35 to $75.

Step 4: Take the Licensing Exam

Passing the state licensing exam can be stressful, so completing a pre-license education course is helpful, even if it is not required by your state. Life insurance licensing exams typically cover state insurance regulations, general insurance concepts and terms, and specific policies applicable to life insurance. Check with your state for a copy of the exam content outline, as the testable information can vary.

Step 5: Submit Your Insurance License Application

With your exams and fingerprinting complete, you can submit your insurance license application. In Nevada, for example, there is a $185 processing fee to be paid via Sircon. You will also need to attach the following documents:

• A signed Fingerprint Background Waiver form
• The receipt of your fingerprints
• Any additional supporting documentation requested

All communication regarding your license must be conducted electronically. Once your application is approved, the relevant division will issue your license, certifying your eligibility to operate within the lines of authority for which you have applied.

Frequently asked questions