Becoming A Globally Licensed Life Insurance Agent: A Step-By-Step Guide

Life insurance agents sell policies that help families, businesses, employers, and other parties protect against financial loss when someone dies. It is a lucrative career, but it involves constant hustling, networking, and rejection. To become a life insurance agent, you need to meet eligibility criteria, complete pre-licensing education, pass a state licensing exam, and apply for your license. The eligibility criteria and licensing requirements vary by state, but in general, you must be at least 18 years old, have no fraud or felony charges, not owe federal or state taxes, and have no past-due child support. You will also need to complete a background check and, in some states, fingerprinting. The pre-licensing education covers insurance industry regulations, different types of insurance policies, and insurance principles. The state licensing exam covers 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.

Research the licensing requirements for the country/region you're in

To become a globally licensed life insurance agent, you'll need to research the licensing requirements for each country or region you want to operate in. Here's a detailed guide to help you navigate the process:

Understanding Licensing Requirements:

Firstly, it's important to understand that licensing requirements vary from jurisdiction to jurisdiction. In the United States, for example, each state has its own set of requirements and procedures for obtaining a life insurance license. Other countries may have similar variations at the state, provincial, or regional level. Therefore, it's crucial to research the specific requirements for each location where you plan to offer your services.

Educational Prerequisites:

In most cases, becoming a licensed life insurance agent requires completing certain educational prerequisites. This typically involves enrolling in pre-licensing education courses or programs. These courses are designed to provide you with the necessary knowledge and skills to sell life insurance products and prepare for the licensing exams. The required number of hours for these courses can vary, so be sure to check the specific requirements for each location. Some states or countries may also require you to have a high school diploma or equivalent, and in some cases, a bachelor's degree in a related field may be preferred by employers.

Licensing Exams:

After completing the necessary education requirements, you'll need to pass a licensing exam. These exams typically cover a range of topics, including insurance regulations, insurance concepts and terms, specific policies related to life insurance, annuities, tax considerations, and more. Preparing for these exams is crucial, as they are often comprehensive and challenging. Taking a structured study course or exam preparation program can significantly increase your chances of passing on the first attempt.

Background Checks and Fingerprinting:

Due to the sensitive nature of the work, many jurisdictions require life insurance agents to undergo background checks and fingerprinting as part of the licensing process. This helps ensure the trustworthiness and integrity of individuals handling financial products related to significant life events. Be prepared to provide any necessary identification, complete background questionnaires, and submit to fingerprinting appointments as required.

Application and Review Process:

Once you've met the educational and exam requirements, you'll need to complete and submit a license application. This application should be thorough and accurate, as any discrepancies or omissions can impact your approval. The application review process can vary in duration, so be prepared to wait a few days to several weeks for a response. During this time, your background check will also be conducted.

Additional Licensing Considerations:

If you plan to offer securities or variable-contract life insurance products, you may need additional licenses from financial regulatory authorities. In the United States, for example, the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) provide such licenses. Similar regulatory bodies may exist in other countries, so be sure to research and comply with the relevant authorities.

Continuous Learning:

The life insurance industry is dynamic, with changing regulations, products, and market conditions. Even after obtaining your initial license, it's important to stay up to date with industry developments. This may involve pursuing continuing education, attending workshops or conferences, or subscribing to industry publications. By staying informed, you can better serve your clients and adapt to changing requirements.

Remember, the key to becoming a globally licensed life insurance agent is meticulous research and adherence to the specific requirements of each jurisdiction in which you plan to operate. This process ensures that you are well-prepared to serve your clients effectively and in compliance with the applicable laws and regulations.

Complete pre-licensing education

To become a globally licensed life insurance agent, you will need to complete pre-licensing education. This is the first step towards getting a life insurance license in most states or countries. Pre-licensing education is designed to help you prepare for your state licensure exam. While some states like Texas and Virginia don't require pre-licensing courses, most states require you to show that you have completed a pre-licensing education course before pursuing your insurance license. This can be done online or in a classroom, and you can take courses in more than one line of authority, allowing you to branch out and sell policies in other insurance lines.

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, while a joint life, accident, and health license require 40 hours. Many states have similar pre-license education hour requirements.

Pre-licensing education covers a range of topics, including insurance industry regulations, different types of insurance policies, and insurance principles.

To complete your pre-licensing education, you will need to take a class that covers a certain number of hours to meet the pre-licensing education requirement. These classes are usually offered by third-party organisations and are paid for by you or your employer if you've been hired already.

In addition to the pre-licensing education, you may also need to do a background check and fingerprinting if required by your state for licensing.

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 to help you prepare for and pass the exam:

Understand the Exam Structure:

The state licensing exam for life insurance agents typically consists of two parts: the "'national' insurance section" and the "state" section. The national section focuses on general insurance knowledge, while the state section covers state-specific regulations and laws. The exam is usually in a multiple-choice format, with questions covering a range of topics.

Know the Exam Topics:

The exam will test your knowledge of life insurance products, procedures, and state regulations. Some common topics include general insurance terms, life insurance basics, types of life insurance policies, provisions, options, riders, annuities, state regulations, and tax implications. Familiarize yourself with the content outline provided by your state to focus your studies effectively.

Complete Pre-Licensing Education:

Most states require you to complete a pre-licensing education course before taking the exam. These courses are typically offered by third-party organizations and cover the fundamental concepts and regulations related to life insurance. The required hours for pre-licensing education vary by state, so make sure to check the requirements for your specific state.

Develop a Study Plan:

Create a structured study schedule that takes into account your other commitments. Give yourself enough time to thoroughly cover all the material. Spend time reviewing the course material, answering practice questions, and taking mock exams. The more time you dedicate to studying and practicing, the better your chances of passing the exam.

Utilize Recommended Resources:

Consider enrolling in a reputable exam preparation course, such as those offered by Kaplan Education Company, which has a high pass rate among its students. These courses can provide you with comprehensive study materials, practice questions, and guidance to enhance your understanding of the exam topics.

Register for the Exam:

Contact the testing company, such as PearsonVue, to register for the exam. Be sure to call in advance to secure your preferred test date. Some states may have specific requirements for registration, so ensure you follow the guidelines provided by your state's insurance department or commission.

Prepare for the Exam Day:

On the day of the exam, arrive at the testing center early, typically around 30 minutes before the scheduled time. Bring the required identification documents and any necessary items, such as your exam admission ticket and pre-licensing education completion certificate. Leave prohibited items, such as electronic devices, at home or in your vehicle.

Exam Performance and Results:

During the exam, carefully read and understand the questions, as they will assess your critical thinking and application of knowledge. You will typically be given between one and two hours to complete the exam. Once you finish, you will receive an official score report indicating whether you passed or failed. If you pass, you can move on to the next steps in the licensing process. If you don't pass, use the feedback on your weaker sections to guide your studies for a retake.

Passing the state licensing exam is a significant milestone in your journey to becoming a globally licensed life insurance agent. It requires dedication, thorough preparation, and a solid understanding of insurance concepts and state regulations. By following these instructions and staying focused, you'll be well on your way to achieving your goal.

Submit your license application

Once you have completed the necessary pre-licensing education and passed the state licensing exam, you can submit your license application. This application should be made to your state's insurance regulation department.

The application process will require you to pay a fee (around $50, but this varies by state), and you may also need to submit an electronic fingerprint for a background check. You will also need to provide valid test results, which are usually valid for one or two years, depending on the state.

The review process can take anywhere from a few days to several weeks, and you will be notified if there are any issues. If something comes up during the background check, the department may contact you for clarification, which can slow down the process.

Once your application has been approved, you will receive your license, which you can print and save as a file on your computer. Keep your license number and NPN number handy when applying for jobs.

It is important to note that your license will need to be renewed periodically, and some licenses require 24 hours of continuing education, including ethics training, to be eligible for renewal.

Complete a background check and fingerprinting

To become a globally licensed life insurance agent, you will need to complete a background check and fingerprinting. This is a necessary step to ensure that only trustworthy professionals work with the public and handle clients' sensitive information. While the specific requirements vary by state and country, here is a general overview of what to expect during the background check and fingerprinting process:

Background Check:

The background check process typically involves submitting to a criminal history check and providing information about your personal history. This may include disclosing any past crimes, misdemeanours, or convictions. Be aware that providing false or incomplete information during this process can result in your application being denied. In some cases, even minor offences or past records may impact your eligibility to become a licensed life insurance agent. The background check will likely include a review of your criminal history, including any pending litigation, criminal charges, or prison time. This information is usually obtained through state databases and national registries, such as the FBI's Criminal Database. Additionally, some states may require you to disclose any financial history or bankruptcy filings.

Fingerprinting:

Fingerprinting is often required as part of the background check process and can provide more comprehensive information than other methods. Your fingerprints will be scanned against criminal databases to ensure that you do not have a criminal record that would disqualify you from becoming a licensed life insurance agent. The fingerprinting process is typically completed by a third-party company, and you will be responsible for paying the associated fees, which can range from $35 to $75. In some states, you may have the option to provide electronic fingerprints or use a preferred fingerprint provider specified by the state.

It is important to note that the requirements for background checks and fingerprinting may vary depending on the state or country in which you are seeking licensure. While some states require both background checks and fingerprinting, others may only require one or the other. Additionally, there may be exemptions for non-resident licensees or certain types of insurance licenses. Therefore, it is essential to research the specific requirements for the location where you plan to practise.

Completing the background check and fingerprinting process is a crucial step in becoming a licensed life insurance agent. By ensuring that professionals in the industry are trustworthy and qualified, regulatory bodies can protect consumers and maintain the integrity of the insurance profession. Remember to be transparent and forthcoming during this process, as any discrepancies or omissions can impact your application.

Frequently asked questions