Becoming An Approved Life Insurance Book Seller

Becoming an approved life insurance salesperson is a lucrative career path that requires a strong background in sales and a fighting spirit to deal with frequent rejection. While there are no formal education requirements, a high school diploma or GED is necessary to earn a license, and some companies may prefer candidates with a bachelor's degree in a related field. The most important step is obtaining a license, which involves taking a pre-licensing course and passing a state-administered exam. This process can take one to three months and costs around $35-$75 for fingerprinting. Life insurance agents typically earn through commissions, with the potential to make over $100,000 in the first year.

Get a high school diploma or GED

To become an approved life insurance salesperson, you'll need to meet certain educational requirements. While the majority of life insurance companies don't have formal education requirements, you'll typically need to have obtained a high school diploma or GED to earn your insurance license. This is the minimum level of education that most insurance companies will be looking for in potential candidates.

If you're still in high school, it's a good idea to take classes in business concepts, marketing, communications, and math, as these will be the most helpful for a career in life insurance sales. While a bachelor's degree is not required to become a life insurance salesperson, some companies do look for candidates with a degree in a related field, such as business or marketing. This is especially true if you want to work for a company that requires a degree.

Once you have your high school diploma or GED, you can start researching the licensing requirements for your state. These vary depending on your location, so check your state's insurance department or commission's website for details. You'll then need to complete the necessary licensing requirements, which may include taking a pre-licensing class, doing a background check, and fingerprinting. After that, you'll need to pass the licensing exam.

Research state-specific licensing requirements

To become an approved life insurance book seller, you'll need to meet certain state-specific licensing requirements. These requirements vary by state, so it's important to check with your individual state for the latest guidance. Here are some general steps to give you an idea of the process:

Step 1: Complete Pre-License Education

Before pursuing your insurance license, most states require that you complete a pre-licensing education course. This can be done online through a third-party financial education company, making it convenient for busy professionals. The required hours for these courses vary by state. For example, California requires 20 hours of pre-license education for a life insurance license, while a joint life, accident, and health license require 40 hours. There are a few states, such as Texas and Virginia, that do not mandate a pre-license education course, instead relying on the licensing exam to demonstrate your proficiency.

Step 2: Complete a License Application

Once you've fulfilled the pre-license education requirements, you can proceed to fill out the application for your insurance sales license. It's crucial to be thorough and accurate during this step. Omitting information, such as a criminal record, can impact your approval. While a criminal record doesn't automatically disqualify you, failing to disclose it on your application will create issues.

Step 3: Get Fingerprinted and Complete a Background Check

Due to the sensitive nature of the work, states require a background check and fingerprints on file before granting a life insurance agent license. You can usually find instructions for scheduling your fingerprinting appointment on your state's website or by contacting the relevant state agency or department. The fingerprinting process is typically handled by a third-party company, and the fee is paid by the applicant, ranging from $35 to $75.

Step 4: Take the Licensing Exam

Passing the state licensing exam is a crucial step in becoming a licensed life insurance agent. This exam covers state insurance regulations, general insurance concepts, specific policies related to life insurance, annuities, tax considerations, and more. The number of questions and the passing score required vary by state. For instance, the life insurance license exams in Indiana and Illinois both include 80 scored questions. Completing a pre-license education course can significantly enhance your chances of passing the exam on your first attempt.

Step 5: Application Review and License

After completing all the necessary steps, your application will undergo a review process, along with your background check. This review can take a few days to several weeks, depending on the state. Once the review is complete, you'll receive your life insurance sales agent license. You can then print your license and start working as a life insurance agent.

Complete a pre-licensing education course

Completing a pre-licensing education course is a crucial step in becoming an approved life insurance salesperson. This course will provide you with the necessary tools and knowledge to prepare for the licensing exam and ensure you are compliant with the legal and regulatory requirements of the industry. Here is a detailed guide to help you through this process:

Understanding the Importance of Pre-Licensing Education:

Before pursuing your insurance license, it is essential to understand that pre-licensing education is a mandatory requirement in most states. This education ensures that you have a strong foundation in insurance concepts, regulations, and ethical practices. It also demonstrates your commitment to the profession and helps build trust with potential clients.

Selecting an Accredited Course Provider:

When choosing a pre-licensing education course, ensure that the course provider is accredited and recognised by the relevant regulatory bodies. This accreditation ensures that the course content meets the necessary standards and will adequately prepare you for the licensing exam. You can usually find a list of approved course providers on your state's insurance department website.

Course Structure and Curriculum:

The structure and curriculum of pre-licensing education courses can vary depending on your state's requirements. However, most courses will cover essential topics such as insurance regulations, general insurance concepts, insurance applications, policy types, underwriting, taxes, and retirement planning. Some courses may also offer more advanced topics, such as different types of insurance policies (e.g., term life insurance, permanent life insurance) and add-ons like final expense insurance and mortgage protection.

Online vs. In-Person Learning:

Pre-licensing education courses are often offered in two formats: online or in-person. Online courses provide flexibility, allowing you to study at your own pace and fit it around your schedule. In-person courses, on the other hand, offer a more structured learning environment and direct interaction with instructors and peers. Consider your learning style and preferences when making a choice.

Time Commitment and Course Duration:

The duration of pre-licensing education courses can vary depending on state requirements. For example, California requires 20 hours of pre-license education for a life insurance license, while a joint life, accident, and health license demand 40 hours. Be sure to check the specific requirements for your state to ensure you fulfil the necessary hours.

Course Materials and Study Strategies:

To get the most out of your pre-licensing education course, make sure you have access to all the necessary course materials, such as textbooks, study guides, and practice questions. Develop a consistent study schedule and create a quiet, distraction-free environment to enhance your focus. Additionally, consider joining study groups or seeking mentorship from experienced professionals to deepen your understanding of the material.

Completing the Course and Next Steps:

Once you have successfully completed your pre-licensing education course, you will be one step closer to becoming an approved life insurance book seller. Make sure to obtain a completion certificate that documents the required hours of your course. This certificate will be crucial when applying for your insurance sales license. Remember to stay motivated and continue building your knowledge as you progress towards the licensing exam and starting your career in life insurance sales.

Pass the state licensing exam

Passing the state licensing exam is a crucial step in becoming a licensed life insurance agent. Here are some detailed instructions and tips to help you prepare for and pass the exam:

Know the Exam Format and Content:

The state licensing exam for life insurance agents typically covers state insurance regulations, general insurance concepts and terms, and specific policies related to life insurance. It may also include topics such as underwriting, setting up policies, annuities, tax considerations, and maintaining an insurance sales agent license. The exam consists of multiple-choice questions, with no fill-ins or essay questions. It is important to familiarize yourself with the exam outline and the specific topics covered.

Complete Pre-License Education:

Most states require you to complete a pre-licensing education course before taking the exam. These courses are designed to provide you with the necessary knowledge and tools to prepare for the licensing exam. The required hours for these courses vary by state, so be sure to check the requirements for your specific state. Even if your state does not mandate a pre-license education course, enrolling in one can significantly improve your chances of passing the exam on your first attempt.

Develop a Study Plan:

Passing the state licensing exam requires a good study plan. Create a schedule that works for you and dedicate sufficient time to cover all the relevant topics. Consider using study guides, practice tests, and other resources to reinforce your understanding of the material. The more prepared you are, the more confident you will feel on exam day.

Understand the Exam Registration Process:

To register for the state licensing exam, it is recommended to contact PearsonVue, the testing company, by phone at least three days before your preferred exam date. Calling in advance increases your chances of securing your desired test date. Some states may have specific requirements or procedures for exam registration, so be sure to check with your state's Department of Insurance or Exam Provider for detailed instructions.

Be Aware of Additional Requirements:

In addition to passing the state licensing exam, there may be other requirements to obtain your life insurance agent license. These could include fingerprinting, background checks, and completing a license application. Make sure to familiarize yourself with all the necessary steps and gather any required documentation to ensure a smooth process.

Remember, the state licensing exam is a challenging but crucial step in becoming a licensed life insurance agent. With dedication, effective study strategies, and a thorough understanding of the exam content, you will be well on your way to achieving your goal. Best of luck with your exam preparation!

Apply for a life insurance license

Once you have passed the state licensure exam, you can apply for your life insurance license. Submit your license application to your state's department of insurance regulation. You should 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. If you are applying for a health insurance license, you will need to pay a separate fee.

The insurance regulation department will review your application. There is often no set timeframe for this as each license application is treated differently. If something comes up in the background check, the department may contact you to clear things up. This can also delay the process.

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

If you feel that there is a delay in processing or your application is erroneously rejected, you can contact the department to provide clarity.

The entire process of getting a life insurance license can take between two and eight weeks. You will spend a big chunk of this time completing your pre-licensing coursework and studying for the state licensure exam.

Additional licensing requirements

If you will be marketing and selling securities or variable-contract life insurance products as part of your life insurance plans, you will also need to be licensed through the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA).

The Series 6 and 63 licenses are the most common securities licenses for insurance agents. To obtain a Series 6 license, you must pass a licensing exam and be registered with a FINRA member firm before testing. You will also need to take and pass a prerequisite test, the Securities Industry Essentials exam (SIE), although you can do this without being sponsored by a firm. The Series 63 exam covers more state-specific securities regulations and policies.

The Series 7 license is another securities license that will allow you to market and sell even more securities products as part of a life insurance plan. Like Series 6, you will need to take and pass the SIE first and be sponsored by a FINRA-member organisation. All licensing exams require preparation and study.

While you can work as a life insurance agent without these licenses, you will be limited in the type of life insurance you can offer to clients. Mutual funds, variable annuities, and indexed life insurance all require a FINRA Series 6 license to market and sell. Pursuing your Series 6, 63, or Series 7 licenses will be a valuable step when you start working with life insurance policies.

Frequently asked questions