Alyssa Lane
If you're thinking about becoming a life insurance agent, you'll need to get certified. The requirements vary depending on where you live, but there are some common steps to take. First, you'll need to meet the basic eligibility requirements, which include being at least 18 years old, having no fraud or felony charges, and passing a background check. Next, you'll need to complete any necessary pre-licensing education, which could include a certain number of hours of coursework. After that, you'll need to pass a state licensing exam, which will cover topics such as insurance regulations, insurance concepts, and tax considerations. Once you've passed the exam, you can apply for your license and start selling life insurance. Keep in mind that you may also need additional licenses if you want to sell insurance in multiple states or offer different types of insurance.
| Characteristics | Values |
|---|---|
| Age requirement | 18 years old |
| Education | High school diploma or GED |
| Pre-licensing education | Yes, varies by state |
| Licensing exam | Yes, Life, Accident, & Health (LA&H) test |
| Background check | Yes |
| Fingerprinting | Yes |
| Application | Yes, apply to the state's department of insurance regulation |
| Licensing fee | Yes, varies by state |
What You'll Learn
Meet eligibility requirements
To sell life insurance, you must be a licensed agent. The eligibility requirements for getting a license vary by state or province, but there are some commonalities. Here are the eligibility requirements you need to meet to get a license to sell life insurance:
Age
You must be at least 18 years old to apply for a license in most states.
Criminal Record
You must be free of any fraud or felony charges and be able to pass a background check. Some states also require that you don't have past-due child support payments.
Financial History
You must not owe any federal or state income taxes.
Education
You need a high school diploma or GED to earn your insurance license. While a bachelor's degree is not required, some insurance companies may look for candidates with a degree in a related field like business or marketing.
Pre-licensing Coursework
Most states require you to complete pre-licensing education with a minimum number of hours. This requirement varies by state, with some requiring 20 hours for a life insurance license and 40 hours for a joint life, accident, and health license. The coursework covers topics such as insurance industry regulations, insurance principles, and health insurance.
Licensing Exam
After completing the pre-licensing coursework, you must pass the state insurance licensing exam. The 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. The exam typically has between 50 and 200 items and must be completed in two to three hours.
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Complete pre-licensing education
To sell life insurance, you must be licensed. The requirements for this vary depending on the state or province in which you intend to practice. In the US, some states require you to complete prelicensing education, while others rely on the licensing exam to demonstrate your knowledge. In Canada, you must complete and pass the Harmonized Life License Qualification Program (LLQP), a national exam.
In the US, the number of hours of prelicensing education required varies by state. For example, California requires 20 hours of pre-license education for a life insurance license, and 40 hours for a joint life, accident, and health license. Many states have similar requirements.
Pre-licensing education courses are usually offered by third-party financial education companies. They can be taken online or in a classroom, and they cover a range of topics, including insurance industry regulations, insurance principles, and health insurance (if you plan to branch out and sell health insurance policies).
In Canada, the LLQP consists of five modules: Accident & Sickness Insurance, Segregated Funds & Annuities, Ethics & Professional Practice, and Ethics & Professional Practice (Quebec). To become certified, you must pass all the modules associated with the license you are seeking.
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Pass state insurance exam
Passing the state insurance exam is a challenging but necessary step to becoming a licensed life insurance agent. Here are some tips to help you prepare for and pass the exam:
Know the Exam Format and Content
The state insurance exam is a proctored, multiple-choice test, typically with four options available as answers. The number of questions varies depending on the state and license type but generally ranges from 50 to 180. The passing score is usually around 70%. The exam covers a broad range of topics, including insurance regulations, insurance principles, life insurance products, state-specific regulations, and tax considerations.
Complete Pre-Licensing Education
Most states require completion of pre-licensing education before taking the exam. The number of hours required varies by state, so be sure to check your state's requirements. Pre-licensing education courses will cover the relevant topics and help you prepare for the exam.
Develop a Study Plan and Schedule
Give yourself enough time to study—cramming is not recommended. Create a study schedule that allows you to cover all the necessary material. Spread your study time over several weeks, and stick to your plan. Use study materials, practice exams, and review courses to reinforce your understanding.
Practice Test-Taking Strategies
Familiarize yourself with effective test-taking strategies. Read the questions carefully, and answer the ones you are sure of first. Eliminate obviously incorrect options, and use your intuition when choosing between similar answers. Manage your time effectively during the exam, and go back to unanswered questions if time permits.
Take Care of Yourself
Studying for the exam can be intensive, so make sure to take care of your physical and mental well-being. Get plenty of rest, eat healthy meals, and stay hydrated. Exercise regularly to improve your focus and memory retention. Take breaks during your study sessions and go for short walks to refresh your mind.
Know the Exam Day Requirements
Be prepared for the exam day by knowing what to bring and what to expect. Arrive at the testing center early, typically around 30 minutes before the exam. Bring the required identification and any necessary completion certificates. Leave personal items and electronic devices at home or in your vehicle, as these are not allowed in the testing room.
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Submit license application
Once you have passed your state insurance licensing exam, you can apply for your life insurance license. You can submit your license application to your state's department of insurance regulation. In most states, you should wait at least 48 hours after passing the licensure exam before applying.
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 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.
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Pass background check
To sell life insurance, you must pass a state licensing exam and meet other requirements. While the specific background check requirements vary by state, there are some general guidelines to follow to increase your chances of passing. Here are some detailed instructions and tips to help you through the process:
Understand the Background Check Requirements:
Research the specific background check requirements for the state where you plan to sell life insurance. Some states require fingerprinting as part of the background check, while others may only conduct identification and/or background checks for the past seven years. The background check will likely include a criminal history check, so be prepared to disclose any relevant information.
Complete the Necessary Forms and Disclose Information:
When filling out the license application, be thorough and accurate. Disclose any criminal record or relevant information that will come up in the background check. Leaving out such information will impact your approval. While having a criminal record does not automatically disqualify you, failing to disclose it on your application will create issues.
Be Proactive and Transparent:
If you have any concerns or doubts about your background, be proactive and transparent. Contact the state's Department of Insurance or a similar agency to seek guidance and clarification. They can provide you with specific instructions and tips for navigating the background check process in your state. Remember, each state has its own set of requirements, so tailor your preparations accordingly.
Address Financial Matters:
Ensure that you don't owe any federal or state income taxes, as this can impact your eligibility for a license. Additionally, address any outstanding debts, bankruptcies, or tax liens. While these may not automatically disqualify you, they are important factors that licensing agencies will consider.
Demonstrate Rehabilitation and Trustworthiness:
If you have a criminal history, be prepared to demonstrate that you have been rehabilitated and pose no risk to customers. Emphasize your trustworthiness and integrity, as these are crucial qualities for insurance agents who handle clients' finances.
Seek Professional Guidance:
Consider seeking guidance from professionals or organizations with experience in insurance licensing. They can provide you with specific instructions and tips for navigating the background check process in your state. Remember, each state has its own set of requirements, so tailor your preparations accordingly.
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Frequently asked questions
The requirements vary depending on the state or province but typically, aspiring life insurance agents must be at least 18 years old, have no fraud or felony charges, not owe any federal or state income taxes, and be able to pass a background check.
In most states and provinces, you need to complete pre-licensing education requirements, which can be done online or in a classroom. The number of hours required varies by state.
The coursework covers a range of topics, including insurance industry regulations, insurance principles, and health insurance (if you choose to branch out and sell health insurance policies).
The cost of the insurance licensure exam can be around $40 to $150, depending on the location. There may also be additional costs for pre-licensing education courses and background checks.
After completing the pre-licensing education and passing the exam, you can submit your license application to your state or provincial insurance regulation department. You will need to pay a licensing fee, which varies depending on the location.
