Getting A Life Insurance License: How Long Does It Take?

The length of time it takes to get a life insurance license varies depending on your location and the type of insurance you want to sell. In the state of Illinois, for example, the process of becoming a life insurance agent takes a few weeks. This involves taking a pre-licensing course, sitting for a licensing exam, submitting a license application, and fulfilling a bond requirement. The duration of the process may also depend on the pace of the individual, as pre-licensing courses can take anywhere from 20 to 40 hours to complete, and the exam may need to be taken more than once.

Pre-licensing education

To get a life insurance license, you must complete a pre-licensing education course. This course will give you the knowledge and tools to prepare for your licensing exam and a solid understanding of your duties as a life insurance agent.

The number of hours required for pre-licensing education varies depending on the state and the specialization. For example, in Illinois, you must complete 20 hours of pre-license education, with 7.5 of those hours being in a classroom setting. Other states may require more or fewer hours, and the number of hours can also depend on the type of insurance you plan to sell.

When choosing a pre-licensing education course, it is important to consider the course's flexibility, price, and reputation. It is also worth noting that your pre-licensing course completion certificate will only be valid for a certain period, after which you will need to retake the course if you have not obtained your license.

Overall, the pre-licensing education course is an essential step in obtaining a life insurance license, providing you with the knowledge and skills needed to succeed as a life insurance agent.

The state exam

To register for the exam, you must complete the pre-licensing requirement of 20 hours of education, with 7.5 of those hours being completed in a classroom setting. You will need to provide proof of completion of the pre-licensing course when you register for the exam. The exam fee is $92 for each section, and you must pay a total of $184 at the time of reservation.

The Illinois life insurance exam outline contains a total of 81 scored questions, and you will have 135 minutes to complete the exam. The exam is proctored, meaning an official proctor will closely monitor you in a controlled environment. The passing score for the Illinois insurance exam is 70%.

If you fail one or both sections of the exam, you can retake it and must pass both sections within 90 days of your first attempt. It is recommended to take a pre-license course and study independently to prepare for the exam. These courses provide industry-specific knowledge that will be tested during the exam and help you understand your duties as a life insurance agent.

After passing the exam, you must wait five days before applying for your Illinois life insurance license.

Application and fees

Once you have passed the state insurance licensure exam, you can apply for your life insurance license. You can submit your license application to your state's department of insurance regulation. It is recommended that you wait at least 48 hours after passing the licensure exam.

You can fill in the application form online on the state department's website. You will also need to pay a licensing fee, which varies between states. For example, in California, the application fee is $188, while in New York, the fee is $80 for residents and varies for non-residents. If you are applying for a health insurance license in addition to a life insurance license, you will need to pay a separate fee.

The insurance regulation department will review your application, and there is often no set timeframe for this as each application is treated differently. If something comes up during the background check, the department may contact you to provide additional information, which can delay the process.

You can find out if your application has been approved through the department's website. Once approved, you can request a copy of your life insurance license. Some departments don't mail printed licenses, so you may need to download and print your license yourself.

Background check

The background check is a crucial component of the life insurance licensing process, and it's important to understand the requirements and procedures involved. While the specific steps may vary from state to state, here's a detailed overview of what to expect.

Basic Eligibility Requirements

To be eligible for a life insurance license, most states have basic requirements that applicants must meet. These typically include:

• Minimum age: Applicants must be at least 18 years old, which is the minimum age to apply for a license in most states.
• Criminal record: Applicants must be free of any fraud or felony charges. Some states may require waiting periods after a conviction or until the end of the probation period for those with a felony record. Misdemeanors or lesser infractions usually do not affect the application process.
• Financial standing: Applicants should not owe any federal or state income taxes.
• Child support: Some states mandate that applicants must not have past-due child support payments.

Fingerprint-Based Background Check

Most states include fingerprinting as part of the licensing process. For a first insurance license, many states will conduct a basic fingerprint scan and run the applicant's name through state databases to check for pending litigation or criminal history. This information is then compared against criminal history records.

State Insurance License Background Checks

State insurance departments play a significant role in the background check process. They review license applications and conduct their own investigations, which may include examining criminal records, driving records, and other relevant information. This process can vary in duration, typically taking anywhere from one to five business days.

Additional Background Checks by Insurers, Agencies, or MGAs

In addition to state-level background checks, most insurance carriers, agencies, or managing general agent (MGA) organizations conduct their own background checks when onboarding new agents. This is done to ensure consumer protection and mitigate financial liability for the agency or carrier. These background checks often involve searching multiple databases, including local, regional, and national registries, to gather comprehensive information about the applicant's criminal, financial, or professional history.

Best Practices for Background Checks

When conducting background checks, it is essential to follow best practices to ensure compliance with legal and ethical standards. Here are some key considerations:

• Transparency: Be transparent with candidates about the background check process, including what information is being sought and why.
• Independent third-party screening: Consider using an independent third party with experience in criminal searches to ensure thoroughness and protect the candidate's personal information.
• Allow explanations: Give candidates an opportunity to explain the results of the background check, as context may be important in understanding any issues that arise.

In conclusion, the background check process for obtaining a life insurance license is comprehensive and rigorous. It involves meeting basic eligibility requirements, undergoing fingerprint-based checks, and being vetted by state insurance departments and insurance organizations. By following the outlined steps and best practices, applicants can navigate the background check process effectively and increase their chances of obtaining their life insurance license.

License release

The life insurance license application process can take anywhere from two to eight weeks, depending on your pace and the state you're applying in. Here is a detailed breakdown of the steps and timeframes involved in obtaining a life insurance license:

Complete a Pre-Licensing Education Course:

This step typically involves attending 20 to 40 hours of classes. The duration of the course will depend on the requirements of your chosen state. For example, in Illinois, you need to complete 20 hours of pre-licensing education, with 7.5 hours conducted in a classroom setting and the rest completed through an approved online or self-study program. This step will likely take up the majority of your time during the application process.

Pass the Licensing Exam:

After completing your pre-licensing education, you will need to pass the relevant state licensing exam. The exam is proctored and usually lasts between two and three hours. The passing scores vary depending on the state, but typically, you must get at least 70% of the answers correct. The exam fee can range from $40 to $150, depending on your location.

Submit Your License Application:

Once you have passed the exam, you will need to wait for a few days before your license is released. The waiting period allows for the verification and processing of your exam results. After this, you can submit your license application, which typically incurs a processing fee. For example, in Illinois, the application fee is $215, and the National Insurance Producer Registry (NIPR) charges a $5.60 transaction fee.

Application Review:

The final step is to wait for your application to be reviewed and approved. This process can take around two to five weeks, depending on your state and whether you submitted a paper or online application. Paper applications may take longer to process. During this time, your application and background check will be reviewed by the state's insurance department. Once the review is complete, you will be notified via email about the status of your license.

Frequently asked questions