Becoming A Life Insurance Agent: Malaysia's Guide

If you're interested in becoming a life insurance agent in Malaysia, you'll need to prepare yourself for the licensing requirements. Here's a step-by-step guide on how to become a life insurance agent in the country:

1. Earn a High School Diploma or GED

To become a life insurance agent in Malaysia, you'll need at least a high school diploma or its equivalent. Some insurance companies may also require their agents to have a bachelor's degree in a related field, such as business or marketing.

2. Research Licensing Requirements

The licensing requirements for life insurance agents in Malaysia vary, so it's essential to research the specific prerequisites for the area in which you plan to work. Some states may require you to take a pre-licensing class with a minimum number of hours, while others may only require you to pass an exam.

3. Complete Licensing Requirements

After understanding the licensing requirements for your desired location, you'll need to fulfill them. This may include taking a pre-licensing class, undergoing a background check, and/or fingerprinting.

4. Pass the Licensing Exam

Once you've completed the necessary requirements, you'll need to pass a licensing exam. This exam will test your knowledge of state rules and regulations, insurance applications, policy riders, exclusions, taxes, retirement, and various types of policies.

5. Obtain Additional Licenses (Optional)

As a life insurance agent, you may eventually want to expand your practice. You can do this by obtaining additional licenses to sell insurance in multiple states or offer different types of insurance products.

6. Register with the Relevant Bodies

In Malaysia, you'll need to register with Persatuan Insurans Am Malaysia (PIAM) for general insurance and the Life Insurance Association of Malaysia (LIAM) for life insurance before you can start transacting any insurance business.

7. Find an Insurance Company to Work With

You can choose to work with a specific insurance company, such as Allianz or AIA, which are popular options in Malaysia. These companies often provide training and support to help you succeed in your career as an insurance agent.

8. Develop Your Skills and Network

To be a successful life insurance agent, you'll need to continuously develop your knowledge and skills. This includes understanding various insurance products, staying updated with industry regulations, and honing your sales and marketing abilities. Networking within your community is also crucial to building a solid client base.

By following these steps and staying committed to your career, you'll be well on your way to becoming a successful life insurance agent in Malaysia.

Get a high school diploma or GED

To become a life insurance agent in Malaysia, you need to have a high school diploma or GED. This is the minimum requirement to earn a licence to sell insurance. While you're in high school, taking classes related to business concepts, marketing, communications and math may be most helpful.

In Malaysia, you will also need to take and pass the Pre-Contract Examination for Insurance Agents (PCEIA) to become a certified life insurance agent. The PCEIA exam is the prerequisite qualification to apply as an insurance agent.

Research licensing requirements

To become a life insurance agent in Malaysia, you must first research the licensing requirements that apply to the area you want to work in. This is because each state has its own licensing requirements, and you will need a license to sell life insurance.

In Malaysia, you will need to take the Pre-Contract Examination for Insurance Agents (PCEIA) offered by the Malaysian Insurance Institute (MII). The exam will test you on various concepts in insurance, life insurance and general insurance business operations and products, and ethical practices in the insurance business. The PCEIA is a prerequisite qualification to apply as a life insurance agent.

Once you have passed the PCEIA, you will need to register with the Life Insurance Association of Malaysia (LIAM) before you can transact any insurance business. You can then forward a copy of your exam results to the agency manager of the insurance company that you will be representing, who will arrange for licensing with the respective associations.

The minimum entry requirement for the PCEIA is SPM/MCE with 5 passes, including Bahasa Malaysia, or other qualifications deemed equivalent or higher (must be academic-based).

Complete licensing requirements

To become a life insurance agent in Malaysia, you must complete the following licensing requirements:

Step 1: Earn a high school diploma or GED

Life insurance agents need to have a high school diploma or a GED in order to earn their insurance license. Additionally, many insurance companies that hire agents may expect their employees to have a high school diploma or GED as a minimum. While you're in high school, if you know you want to be a life insurance agent, classes relating to business concepts, marketing, communications and math may be most helpful.

Step 2: Research licensing requirements

Once you know you want to become a life insurance agent, you should research the licensing requirements that apply to the area you want to work in. If you have already been hired by a company to fill a life insurance agent role, they may assist you with the licensing process, but for many insurance agents, navigating the licensing requirements is done independently. You can often find information on licensing requirements on your state's insurance department or commission's website.

Step 3: Complete licensing requirements

Once you're aware of what the licensing requirements in your area are, you can complete them to get your license. You may need to take a class that covers a certain number of hours to meet a pre-licensing education requirement. These classes are usually offered by third-party organisations and they are something that either you pay for or your employer pays for if you've been hired already.

Besides potentially needing to take a class, you may also need to do a background check and fingerprinting if your state requires it for licensing. In some states, you need to apply for a license before you take your exam and receive your license, but in other states that isn't required. Whatever requirements your state has, to ensure you receive your license as planned, verify you have completed those requirements.

Step 4: Pass licensing exam

Once you've completed all your other licensing requirements, you probably need to pass a licensing exam. For some, an exam preparation course can be helpful, especially if your state has no educational requirements to become a licensed life insurance agent. You may also decide to prepare on your own with study materials you find online or in a book. Some topics of a life insurance agent licensing exam include:

• State rules and regulations
• Insurance applications, underwriting and delivering policies
• Policy riders and exclusions
• Taxes and retirement
• Types of policies

Pass the licensing exam

To become a life insurance agent in Malaysia, you must pass a licensing exam. Here is a step-by-step guide to help you pass the exam:

Step 1: Register for the Exam

First, you need to register for the exam at the Malaysian Insurance Institute (MII). The cost of the exam is RM80. You can register in person at the MII office in Jalan Duta or Sime Darby Building in Kuala Lumpur. Bring a photocopy of your SPM certificate, your IC, and the registration fee.

Step 2: Download the Study Materials

Once you have registered, you can download the ebook from the MII website. The ebook is a zip/pdf file, and the password will be given to you when you register. Alternatively, you can purchase the physical book for RM30. The book covers 30 chapters, with 10-12 questions at the end of each chapter for you to test your knowledge.

Step 3: Prepare for the Exam

The licensing exam covers various topics, including:

• State rules and regulations
• Insurance applications, underwriting, and policy delivery
• Policy riders and exclusions
• Taxes and retirement
• Types of policies

Note that the exam contents may vary by state, especially the state rules and regulations questions. In addition to the ebook or physical book, you can find additional study materials and information about the exam on the MII website or other online sources.

Step 4: Take the Exam

The licensing exam is typically a computer-based exam (CBE) or a virtual computer-based exam (VCBE). The CBE is held at specific examination centres, while the VCBE allows you to take the exam anytime, anywhere. Check the MII website for the examination calendar and choose the option that suits you best.

Step 5: Receive Your Results

After taking the exam, you will receive your results immediately if you chose the VCBE option. For the CBE, there will be specific dates for releasing the results. The passing mark for the exam is 50%.

Step 6: Complete Your Licensing Requirements

Once you have passed the exam, there may be additional steps to obtain your license, such as submitting paperwork or registering with the relevant insurance associations. Make sure to check the requirements specific to your state or region.

By following these steps and putting in the necessary time and effort to prepare for the exam, you will be well on your way to becoming a licensed life insurance agent in Malaysia.

Consider additional licenses

To become a life insurance agent in Malaysia, you must first obtain a license by passing the Pre-Contract Examination for Insurance Agents (PCEIA). This qualification is a prerequisite to applying as a life insurance agent.

Once you have passed the PCEIA, you will need to register with the Life Insurance Association of Malaysia (LIAM) before you can begin transacting any insurance business.

Additional Licenses

In addition to the PCEIA, there are other licenses and qualifications you may want to consider to enhance your career as a life insurance agent in Malaysia:

• The Associateship of The Malaysian Insurance Institute (AMII) Level 1 and Level 2: These are professional qualifications offered by the Malaysian Insurance Institute that can provide you with further knowledge and skills in the insurance field.
• Fellowship of the Malaysian Insurance Institute (FMII): This is another professional qualification offered by the Malaysian Insurance Institute that can enhance your expertise and credibility as a life insurance agent.
• Certificate Examination in Investment-Linked Life Insurance (CEILLI): If you want to specialise in investment-linked life insurance products, this certificate can provide you with the necessary knowledge and credentials.
• Registered Financial Planner (RFP): Obtaining a qualification as a registered financial planner can complement your life insurance expertise and allow you to offer more comprehensive financial advice to your clients.
• Licenses for General Insurance: In Malaysia, you can register with up to two general insurance companies in addition to your life insurance license. This can provide you with the opportunity to offer a wider range of insurance products to your clients. To obtain a general insurance license, you will need to pass the PCEIA with a focus on Part A and Part B, and register with the Persatuan Insurans Am Malaysia (PIAM).
• Licenses for Takaful Insurance: Takaful insurance is a type of Islamic insurance that complies with Sharia law. If you want to offer Takaful insurance products, you will need to obtain a separate license and registration. The requirements for Takaful insurance agents are similar to those for conventional insurance agents, including passing the PCEIA and registering with the relevant associations.

By obtaining additional licenses and qualifications, you can enhance your knowledge, expand your range of products, and better serve your clients as a life insurance agent in Malaysia.

Frequently asked questions