Becoming A Life Insurance Agent: Getting Accredited

Life insurance agents sell policies that provide financial safety nets for families in the event of a person's death. It's a competitive industry with a high burnout rate, but it can be a lucrative career for those with a strong background in sales and the ability to handle rejection. To become a life insurance agent, you'll need to meet basic eligibility requirements, complete pre-licensing education, pass a state exam, and apply for your license. Here's a step-by-step guide to help you get started on your journey towards becoming an accredited life insurance agent.

Meet the basic eligibility requirements

The first step to getting accredited as a life insurance agent is to meet the basic eligibility requirements. These requirements vary slightly depending on the state, but there are some general criteria that must be met.

Firstly, aspiring life insurance agents must be at least 18 years old, which is the minimum age to apply for a license in most states. It is also important to have a clean record, as candidates must be free of any fraud or felony charges and not owe any federal or state income taxes. In addition, candidates must be able to successfully complete a background check. Some states also require that insurance agents do not have any past-due child support payments to be eligible for a license.

Furthermore, while a college degree is not always necessary, a high school diploma or GED is typically required to earn an insurance license. Some insurance companies may also prefer candidates with a bachelor's degree in a related field, such as business or marketing.

It is important to note that meeting these basic eligibility requirements is just the first step towards becoming a life insurance agent. There are several other steps in the process, including completing pre-licensing coursework, passing a state licensure exam, and applying for the license. Each of these steps may have their own specific requirements and procedures, which can vary by state. Therefore, it is essential to research and understand the specific requirements for the state in which you plan to obtain your license.

Complete pre-licensing coursework

To become a life insurance agent, you'll need to complete pre-licensing coursework. This will equip you with the knowledge and tools to prepare for your state licensing exam. The required hours of pre-licensing coursework 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 necessitate 40 hours.

You can complete these courses online through third-party financial education companies, which offer flexibility for those with busy schedules. The courses cover various topics, including state insurance regulations, general insurance concepts and terms, specific policies applicable to life insurance, annuities, and tax considerations.

Some states, like Texas and Virginia, do not require a pre-license education course, but you will still need to pass the licensing exam to demonstrate your professional knowledge. Even in these states, taking a structured study course is recommended to prepare for and pass the exam on your first attempt.

Kaplan's online courses are a popular choice, with over 81% of readers using them to prepare for their insurance license exams. These courses have a 93% pass rate and are recommended by StateRequirement.

Pass the state insurance licensure exam

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

Understand the Exam Format and Content:

The state licensure exam typically consists of multiple-choice questions, with no fill-ins or essay questions. The exam covers a broad range of topics, including insurance industry regulations, insurance principles, and state-specific regulations. It is essential to familiarize yourself with the content outline provided by your state or the exam provider.

Complete Pre-Licensing Coursework:

Enroll in a pre-licensing course to prepare for the exam. These courses are designed to provide you with the knowledge and skills needed to pass the exam. You can choose between online courses or traditional classroom setups, depending on your preference. Make sure to put in the required effort and time to complete the coursework thoroughly.

Develop a Study Plan and Schedule:

Create a structured study plan and schedule to ensure you cover all the relevant topics effectively. Allocate specific blocks of time each day for studying and stick to your schedule. It is recommended to spend a couple of hours each day on your pre-license education course and additional time on practice questions and tests.

Practice with Mock Exams and Practice Questions:

Utilize practice exams and practice questions to reinforce your understanding of the material. Answer practice questions, take mock exams, and quiz yourself on related vocabulary. The more time you spend mastering the knowledge, the better your preparation will be.

Take Care of Yourself Before the Exam:

In the week leading up to the exam, maintain a healthy balance. While studying is important, avoid overwhelming yourself with excessive cramming. Get plenty of rest, eat nutritious meals, and engage in physical activity to stay energized and focused.

Know What to Expect on Exam Day:

Familiarize yourself with the exam day requirements and procedures. Plan to arrive at the testing center at least 30 minutes early. Bring the required identification and any necessary documents, such as your pre-licensing education completion certificate. Leave prohibited items, such as electronic devices, at home or in your vehicle.

Manage Your Test Anxiety:

If you experience test anxiety, establish a consistent pre-test routine by acclimating yourself to exam conditions during practice exams. Get a good night's sleep before the exam, as lack of sleep can increase anxiety and self-doubt. Tailor your studying specifically to the exam content to boost your confidence.

Register for the Exam:

Remember to register for the exam within the given timeframe. Contact the testing company or exam provider to sign up, and try to do so at least three days in advance to increase your chances of getting your preferred test date.

Passing the state licensure exam is a challenging but achievable goal. With dedication, a structured study plan, and effective preparation, you can successfully pass the exam and move one step closer to becoming a licensed life insurance agent.

Apply for your life insurance license

Once you've passed the state exam, you can apply for your life insurance license. You can 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’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 the department treats each license application differently. If something comes up from 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’s a delay in processing or your application is erroneously rejected, you can also contact the department to provide clarity.

The entire process of getting a life insurance license can take between two and eight weeks. You will be spending 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).

Once you complete the above steps and have your Texas life insurance license, there are a few steps you’ll need to take in order to a) excel as an insurance agent, and b) maintain your life insurance license.

Obtaining Relevant Securities Licenses

If you’re planning on selling advanced life insurance products, you’ll likely need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses (e.g., Series 6, 7, and 63).

Choose a Means of Selling

You’ll have to decide whether you’d prefer working as a captive agent employed by one company, or running your own business as an independent agent.

If you’re just starting out, you’ll likely benefit from working as a captive agent, but this will ultimately depend on your personal aspirations and opportunities.

Develop Your Marketing Approach

To succeed as an insurance agent, you’ll need to adopt a marketing approach that’s effective for you.

We recommend finding and sticking to a niche, as well organizing all client appointments for the start of your week. This is because this can improve your overall client conversions.

Keep Your License Valid

In Texas, you must take 24 hours of continuing education (CE) every two years to renew your license and maintain its good standing.

You must complete two hours in ethics/consumer protection and at least 12 hours in “classroom” or “classroom-equivalent” courses.

Keep in mind that for every hour of continuing education you fail to complete on time, you’ll be required to pay a $50 fine (up to a maximum of $500 per license).

You will not be able to renew your license until you complete your continuing education hours and pay any outstanding fines.

To avoid delays in renewing your license, we recommend completing the required continuing education hours at least 30 days before your license expires.

Maintain your license

Maintaining your license as a life insurance agent is an important part of the job. Once you have your license, you will need to take a minimum of 24 hours of continuing education (CE) credits during a two-year term. These include three hours of ethics training.

The requirements for maintaining your license vary depending on the state, so be sure to check with your state's insurance department or commission. Some states may require additional hours of coursework or continuing education credits. It is important to stay up-to-date with any changes in the industry and to complete any necessary training to maintain your license status.

In addition to completing the required number of CE credits, you may also need to renew your license periodically. The renewal period varies by state and can range from one to two years. You will need to pay a fee to renew your license, which also varies by state.

It is important to keep track of when your license expires and to renew it before that date. If your license expires, you may need to retake the licensing exam or complete additional requirements to become licensed again.

Maintaining your license as a life insurance agent is crucial to your career. By staying up-to-date with industry changes and completing the necessary continuing education, you can ensure that you are providing the best service to your clients and maintaining your professional status.

Frequently asked questions