Jane Dotson
Getting a life insurance license is a great way to start a career in the financial services industry. The process varies from state to state, but there are some general steps you can follow to get your license for free. First, you'll need to meet the basic eligibility requirements, which typically include being at least 18 years old, having no fraud or felony charges, and passing a background check. Next, complete any required pre-licensing education, which may include a training program or courses to prepare for the exam. Then, pass the state insurance licensing exam. After that, submit your license application, which may involve a fee, and finally, get fingerprinted and take any required ethics courses. With these steps, you'll be on your way to becoming a licensed life insurance agent!
| Characteristics | Values |
|---|---|
| Eligibility Requirements | Be at least 18 years old, free of fraud or felony charges, no unpaid federal or state income taxes, pass a background check |
| Pre-licensing Coursework | Mandatory pre-licensing course with a minimum number of hours (varies by state) covering insurance industry regulations and principles |
| State Insurance Licensure Exam | Pass the Life, Accident, & Health (LA&H) test with a passing score of at least 70%. The exam has between 50 and 200 items and must be completed in 2-3 hours |
| Application | Submit the application to the state's department of insurance regulation, along with a licensing fee |
| Fingerprinting | Required in some states, such as California |
| Background Check | Required in most states |
| Ethics Course | Required in some states |
What You'll Learn
Eligibility requirements
The eligibility requirements to obtain a life insurance license vary depending on the state. However, here is a general overview of the requirements:
- Age: You must be at least 18 years old, which is the minimum age to apply for a license in most states.
- Criminal Record: You must be free of any fraud or felony charges.
- Financial Standing: You should not owe any federal or state income taxes, and it is important to ensure you do not have any past-due child support payments.
- Background Check: You need to be able to successfully complete a background check, which may include fingerprinting, depending on the state.
- Education: Most states require a high school diploma or its equivalent. Some states may also mandate a specified number of pre-licensing education hours, which can be completed online or in a classroom setting. These courses cover topics such as insurance industry regulations and principles.
- Residency: If you plan to sell insurance in a state other than your current residence, check the requirements. Some states may require you to be a resident for a certain period before taking the exam.
- Exam Registration: You must register for the state insurance licensing exam, which includes paying the associated fee.
It is important to note that these are general guidelines, and specific requirements may differ from state to state. Therefore, it is essential to check with your state's insurance regulation department or organization to understand the precise eligibility criteria for obtaining a life insurance license.
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Pre-licensing education
The pre-licensing coursework is designed to prepare you for the state licensure examinations. It covers a range of topics, including insurance industry regulations, insurance principles, and health insurance (if you're pursuing a combined life and health insurance license). The number of mandatory hours varies by state, and the courses are tailored to meet the specific requirements of each state's insurance license exam.
Kaplan Financial Education offers various pre-licensing education packages to suit different learning styles and budgets. These include Live Online Classes, OnDemand courses, and self-study programs. Their Live Online Classes provide a combination of live instruction, OnDemand recordings, physical textbooks, and online study tools. The OnDemand option offers recorded class sessions, textbooks, and online study tools for flexible learning. Meanwhile, the self-study program provides comprehensive materials for independent learners.
PreLicense Training is another provider of pre-licensing education. They offer an online course, practice tests, and a hard copy book to enhance your understanding of the material. Their program includes exam simulations, sample exams, quizzes, and flashcards, all crafted by experienced insurance professionals.
The cost of pre-licensing education can vary, so it's essential to check with your chosen provider. However, some sources indicate that the exam preparation can cost anywhere between $43 and $150, depending on the state.
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State insurance exam
To obtain a life insurance license, you must pass a state insurance licensing exam. This is a crucial step in the process and will require diligent preparation. Here is a detailed guide to help you navigate the state insurance exam:
Understanding the Exam Structure:
The state insurance exam will test your knowledge in various domains. While the specific format and content may vary slightly from state to state, there are overarching themes and similarities across all state exams. The exam will be computer-based and consist of multiple-choice questions, typically ranging from 105 to 150 questions. The passing score is generally a minimum of 70% for all states.
Exam Topics:
The exam covers a range of topics related to the life insurance domain. These topics include life insurance general knowledge, life insurance policies, policy riders and options in life insurance coverage, life insurance tax issues, and annuity policy tax issues. If you are pursuing a combined life and health insurance license, there will also be additional health insurance-related topics covered.
Pre-Licensing Coursework:
Before taking the state insurance exam, it is essential to complete the necessary pre-licensing coursework. This preparatory step will provide you with a solid foundation for the exam. The coursework can be completed online or through face-to-face classroom instruction, depending on your preference. The pre-licensing courses will cover subjects such as insurance industry regulations, insurance principles, and health insurance (if you choose to branch into health insurance sales).
Exam Registration and Scheduling:
To take the state insurance exam, you will need to register and schedule it. Each state may have its own process, so be sure to check with your state's insurance department or commission. You will typically need to pay a registration fee, which varies by state. Most states allow you to choose the date and time of your exam, and you can usually schedule it online or over the phone. It is recommended to schedule your exam at least two weeks in advance to give yourself ample time to prepare.
Exam Day:
On the day of the exam, arrive at the test center with proper identification. The exam will be proctored, meaning you will be supervised by an examiner during the test. The exam duration is typically between two to three hours. Stay calm during the exam, read each question carefully, and answer the ones you are confident about first. If you come across a challenging question, you can always return to it later.
Exam Results and Retakes:
You will typically receive your exam results at the testing center. If you pass, you can proceed to the next step of applying for your life insurance license. However, if you do not pass, most states allow you to retake the exam. You may need to wait for a specific period before registering for a retake, and there may be limits on the number of retakes allowed within a given timeframe.
Remember, obtaining a life insurance license is a valuable step towards building a successful career in the insurance industry. The state insurance exam is a crucial component of this process, so ensure you understand the requirements, prepare thoroughly, and remain focused on your goal.
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Background check
To obtain a free life insurance license, you must pass a background check. This is a mandatory requirement in the licensing process and is conducted to assess your suitability for obtaining an insurance license. The background check will involve fingerprinting and a basic state-level background investigation.
The process for the background check will vary depending on the state in which you are applying for the license. While some states may only require a fingerprint scan, others may conduct a more comprehensive background check. This may include running your name through state databases to check for any pending litigation or criminal history. It is important to note that some states exempt non-resident licensees from this process.
In addition to the state-level background check, most insurance carriers, agencies, or managing general agent (MGA) organizations will also perform their own background checks on new agents. This is to ensure that only trustworthy professionals are working with the public and to mitigate any financial liability that may arise from the actions of their appointed or affiliated producers.
To ensure a thorough background check, it is recommended to use professional verification sources and technology. This can make the process more efficient and comprehensive, reducing the risk of exposing an insurance professional's protected personal information.
It is worth noting that the background check is just one part of the licensing process, and there are other requirements that must be met to obtain a free life insurance license. These include meeting basic eligibility requirements, completing pre-licensing coursework, and passing the state insurance licensure exam.
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Application
Once you've passed the exam, you can apply for your life insurance license. You can submit your license application to your state's department of insurance regulation. It's 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. If you're 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 application is treated differently. If something comes up during the background check, the department may contact you to clear things up, which can cause a delay.
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 there is a delay in processing or your application is rejected, you can contact the department for more information.
Additional Information
- The entire process of getting a life insurance license can take between two and eight weeks.
- You will need to take a minimum of 24 hours of continuing education (CE) credits during a two-year term to maintain your license. These include three hours of ethics training.
- In California, you will need to apply for a National Producer Number (NPN) in addition to your California Insurance License. The NPN is a unique identifier that can be used to track you or your business entity in the national database of insurance producers.
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Frequently asked questions
First, you need to decide which types of insurance policies you want to sell. If you want to sell life insurance, you will need to get a Life and Health Insurance License. This will allow you to sell life, health, disability, and long-term care insurance.
The requirements vary from state to state but typically include being at least 18 years old, having a high school diploma or equivalent, completing a pre-licensing course, and passing a background check. Some states also require you to get fingerprinted.
Yes, you will need to pass a state insurance licensing exam. The exam will cover topics such as life insurance general knowledge, life insurance policies, policy riders, and tax issues. The passing score is typically 70% and the exam costs around $40-$150.
Once you've passed the exam, you will need to submit your license application and fees to your state's department of insurance. You will also need to renew your license periodically as required by law.
