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

The time it takes to get a life insurance license varies depending on your location and the type of insurance you plan to sell. In the state of Illinois, for example, the process of becoming a life insurance agent takes a few weeks. This includes taking a pre-licensing course, sitting the licensing exam, submitting your license application, and fulfilling the bond requirement. Other states may have different requirements, so it's important to check with your specific state's insurance department for detailed information.

Pre-licensing education course

The time it takes to get a life insurance license varies depending on your state and pace. The process can take anywhere from two to eight weeks.

A crucial component of obtaining a life insurance license is completing a pre-licensing education course. These courses are designed to provide you with the necessary knowledge and tools to pass the state licensure exam and understand your duties as a life insurance agent.

The pre-licensing education course requirements differ depending on the state. For example, in Illinois, you are required to complete 20 hours of pre-license education, with 7.5 hours conducted in a classroom setting. The remaining hours can be fulfilled either in-person or online. Other states may have different requirements, so it is essential to check the specific mandates for your state.

The pre-licensing education course covers specific industry knowledge that will be tested during the state licensure exam. The course is self-paced and typically includes study materials such as practice exams and flashcards. It is recommended to choose a course with a high pass rate to increase your chances of success.

Kaplan Financial offers Live Online, Live and OnDemand, and Self-Study Online insurance licensing solutions. Their courses are designed to fit different budgets and learning styles, providing flexibility for students. ExamFX also offers online prelicensing training courses in all 50 states, ensuring you are well-prepared for the exam.

PreLicense Training is another option that promises to help you pass your insurance license exams in just a few weeks. They offer various courses, including the Life Agent Combo (52 hours) and Life Only (20 hours), to meet your specific needs.

Exam registration

The first step to registering for your life insurance exam is to check the requirements of your specific state. Each state has its own life insurance licensing process and requirements. Some states require you to complete pre-education and an application before registering for the exam, while others require you to pass the licensing exam first.

Once you have determined your state's requirements, you can begin the registration process. In most states, you will need to register for the exam through a testing service such as Pearson VUE. You will typically need to provide proof of completing any pre-licensing education requirements, as well as personal information such as your full legal name and social security number.

It is recommended to register for the exam as far in advance as possible, as test dates are limited by availability. You generally have 90 days to take the exam after completing your pre-licensing education. The exam fee varies depending on the state but is typically between $32 and $121.

If you require any special accommodations for the exam, such as a separate testing room or additional time, you will need to contact the test administrator before registering to request these accommodations and provide supporting documentation.

Exam Content

The life insurance exam will cover a range of topics related to life insurance products, procedures, and state regulations. It is important to familiarize yourself with the specific content outline provided by your state. However, some general topics that are commonly included in the exam are:

• General insurance terms: This includes knowledge of the duties of an insurance agent, such as evaluating risk, completing contracts, and understanding the responsibilities of the agent and agency.
• Life insurance basics: You should be familiar with how life insurance works, the different types of policies, premiums, and underwriting.
• Life insurance policies, provisions, options, and riders: This section typically makes up a large portion of the exam, covering the different types of life insurance policies (term, whole life, group life insurance) and the various provisions and options that can be attached to a plan.
• Annuities: Understanding what an annuity is, how it fits into a life insurance policy, and how it is used by beneficiaries.
• State regulations: Learning the specific rules and regulations that apply to licensed life insurance agents in your state.
• Tax code: While you don't need an accounting degree, you should be familiar with the basic tax implications of life insurance policies, benefits, and how they interact with different types of retirement accounts.

The exam typically consists of between 50 and 100 questions and has a duration of one to two hours. It is important to note that the exam is proctored, meaning an official proctor will closely monitor you during the exam in a controlled environment.

The exam itself

The Illinois Life Insurance Licensing Exam is administered by Pearson VUE, the official testing service for delivering licensure exams. The exam is divided into two sections: general and state-specific knowledge. The general section covers basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to Illinois.

The exam consists of 81 scored questions, and you will have 135 minutes to complete it. The exam fee is $92 for each section, and you must pay the total amount of $184 at the time of reservation by credit card, debit card, or voucher. The exam is proctored, meaning an official proctor will closely monitor you in a controlled environment.

To register for the exam, you must provide a valid signature-bearing ID with your photo and the original copy of your pre-licensing education certificate. It is important to note that you must register for both the General exam and the State exam separately. Both exams must be passed within 90 days of each other.

If you fail one or both sections of the exam, you can retake it, but you must pass both sections within 90 days of your first attempt. The passing score for the Illinois insurance license exam is a minimum of 70%.

After passing the exam, you will be given your pass sheet and an instruction sheet by the test administrator, Pearson VUE. Make sure to carefully read and retain the instruction sheet for your records. If you fail the exam, Pearson VUE will provide the results and the procedures for arranging another exam attempt.

Application submission

Once you have passed the life insurance exam, you must wait at least five days before applying for your Illinois life insurance license. The application fee is $215, and the National Insurance Producer Registry (NIPR) will charge a $5.60 transaction fee for a total of $220.60.

To apply for a life insurance license in Illinois, make sure you comply with the insurance licensing requirements as defined under the Illinois Insurance Code. You must be at least 18 years old and have passed the licensing exam.

Illinois now requires you to apply for your license electronically. You can submit your application online through the NIPR. The NIPR website offers detailed, step-by-step guidance to help you through the application process.

Once you complete the application process through the NIPR, you’ll receive an email from the NIPR confirming it submitted your application to the Illinois Department of Insurance (IDOI).

Send any questions or supporting documents to [email protected].

Background check

To obtain a life insurance license, you must be able to pass a background check. This is a mandatory requirement in all states. The background check will verify that you meet the basic eligibility requirements, which include being at least 18 years old, being free of any fraud or felony charges, not owing any federal or state income taxes, and not having past-due child support (in some states).

The background check is conducted by the state's insurance regulation department as part of the license application review process. It is important to note that the department treats each license application differently, so there is no set timeframe for the background check. If something comes up during the background check, the department may contact you to clarify or request additional information, which can delay the processing of your application.

In addition to the criminal background check, the insurance provider may conduct additional background checks on the applicant. These checks may include reviewing the applicant's health history, driving record, and other relevant information to assess their eligibility for a life insurance policy. State laws regulate the information that providers can use, but the extent of the checks depends on the cost-benefit ratio, with more extensive checks being conducted for larger policies.

It is important to be honest and transparent during the background check process. Providing false or misleading information can result in the rejection of your application and may impact your chances of obtaining a license or insurance in the future.

The entire process of obtaining a life insurance license, including the background check, can take between two and eight weeks. This timeframe can be extended if there are issues with the background check or if additional information is required. Therefore, it is advisable to initiate the process as soon as possible and ensure that all necessary requirements are met.

Fingerprinting

As part of the background check process, you may be required to submit your fingerprints. This is a common requirement for obtaining a life insurance license in many states. Fingerprints are used to conduct a criminal background check and verify your identity. Each state may have specific requirements and procedures for fingerprinting, so it is important to refer to your state's guidelines.

In Texas, for example, applicants for a life insurance license must undergo a fingerprint-based background check through IdentoGO. The fingerprints are sent to the Texas Department of Public Safety (DPS) and the FBI for a criminal history check. The fee for fingerprinting services is $39.70.

Some states may offer exemptions from fingerprinting requirements under certain conditions. For instance, in Texas, if you already have an active license or registration with the state and have previously submitted fingerprints, you may be exempt from the fingerprint requirement when applying for a new license.

It is important to note that the fingerprinting process may take some time, and there could be delays in scheduling fingerprinting appointments or processing the results. Therefore, it is advisable to initiate the fingerprinting process as early as possible to avoid delays in obtaining your life insurance license.

Frequently asked questions