Get Licensed To Sell Life Insurance: A Step-By-Step Guide

Getting a license to sell life insurance can be a challenging but rewarding process. The requirements vary depending on the state, but there are some general steps to follow. First, meet the basic eligibility requirements, such as being at least 18 years old and having no fraud or felony charges. Next, complete a pre-licensing course to prepare for the state licensure exam, which covers topics like insurance industry regulations and insurance principles. After passing the exam, submit your license application and wait for the results. It's important to note that maintaining your license will require continuing education credits.

Meet basic eligibility requirements

To sell life insurance, you must meet the basic eligibility requirements. These may vary depending on the state, but typically, aspiring life insurance agents and brokers must meet the following criteria:

• 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 should be free of any fraud or felony charges. Some states may also require that you do not have past-due child support payments.
• Financial history: You should not owe any federal or state income taxes.
• Background check: You must be able to pass a background check.

Once you meet these basic eligibility requirements, you can move on to the next steps of becoming a licensed life insurance agent. These steps include completing pre-licensing coursework, passing the state insurance licensure exam, and applying for your life insurance license.

It's important to note that the requirements may differ slightly depending on the state you are in, so make sure to check the specific eligibility criteria for your state.

Complete pre-licensing coursework

To sell life insurance, you'll need to get a license, and to get a license, you'll need to complete pre-licensing coursework. The requirements for this vary depending on the state in which you plan to practice.

For example, in California, you'll need to complete courses and pre-licensing exams associated with the insurance products you plan to offer. If you want to offer only life insurance, you'll need to apply for a life-only license. There are several packages available that meet these requirements, including 32-hour mandatory life insurance pre-licensing courses, online exam prep videos, and online practice exams.

In Maryland, you must complete 20 hours of prelicensing education. A pre-license education course will provide you with very specific industry knowledge that will be tested during the exam. There is very little on the test that could be considered "common sense". Pre-license education courses are self-paced and include study materials like practice exams and flashcards.

Kaplan is one company that offers prelicensing courses in Maryland. Their courses will prepare you to successfully pass the state exam on your first attempt. They offer online courses that can be supplemented with web classes and learning tools like flashcards and study manuals.

The National Online Insurance School is another option, offering a 100% online exam prep course that satisfies the pre-licensing requirement for the state licensing exam. Their course includes instructional videos, practice exams, and state-certified instructors to answer questions and guide you through the licensing process.

Pass the state insurance licensure exam

Passing the state insurance licensure exam is a crucial step in obtaining a license to sell life insurance. Here are some detailed instructions to help you prepare for and pass the exam:

Understand the Exam Format and Content:

The state insurance licensure exam typically consists of multiple-choice questions, with no fill-in or essay questions. The exam heavily covers definitions and terminology, numbers (dollar amounts and day counts), and practical application of knowledge. It is essential to familiarize yourself with the specific format and content outline provided by your state.

Choose a Reputable Exam Prep Course:

Enrolling in a comprehensive exam prep course can significantly increase your chances of passing. Look for courses with high pass rates, such as Kaplan's online courses, which offer a variety of resources like practice exams, flashcards, and study guides. These courses will ensure you have a solid understanding of the material and give you the best chance for success.

Develop a Study Plan and Schedule:

Create a structured study plan that takes into account your other commitments. Dedicate specific blocks of time each day to focus on the exam content. Resist the urge to rush through the material; instead, spend a couple of hours daily on your studies, including practice questions and tests.

Answer Practice Questions and Take Mock Exams:

Spend dedicated time answering practice questions and taking mock exams in a simulated test environment. This will help you identify areas of strength and weakness and familiarize yourself with the exam format. Review your performance and use the feedback to guide your continued studies.

Take Care of Yourself Leading up to the Exam:

In the week before your exam, maintain a healthy balance. While studying is important, avoid overwhelming yourself with excessive cramming. Get plenty of rest, eat nutritious meals, and stay active to ensure you're in your best shape, both physically and mentally, for the exam.

Know the Exam Day Requirements and Procedures:

Be sure to arrive at the testing center early, usually about 30 minutes before the exam start time. Bring the required identification and any necessary documents, such as your pre-licensing education completion certificate. Leave personal items and electronic devices at home or in your vehicle, as these are typically not allowed in the testing area.

Focus on Passing:

Remember that the primary goal is to pass the exam. While a perfect score is admirable, don't get discouraged if you don't understand or remember every detail. Focus on mastering the key concepts and applying them effectively during the exam.

Be Prepared for the Application Process:

After passing the exam, you will need to complete the license application process. This may include additional steps such as fingerprinting, background checks, and submitting the necessary application forms and fees. Stay organized and follow your state's guidelines to ensure a smooth application process.

Apply for your life insurance license

Once you've passed your life insurance exam, you can apply for your license. The application fee varies depending on the state, but it usually includes a transaction fee. You must complete the National Association of Insurance Commissioners (NAIC) Uniform Application through the National Insurance Producer Registry (NIPR).

The insurance administration body in your state will issue a life insurance license to individuals who are at least 18 years old and have passed the relevant licensing exam. You should submit your completed license application within six months of passing the exam.

To apply for a life insurance license, make sure you comply with the insurance licensing requirements as defined by your state.

Send any questions or supporting documents to your state's insurance administration body.

After you've completed the previous steps, your state's insurance administration body will review your application and background check. This process usually takes a few business days from the date you submit your application.

You can then print your license from the NIPR website. There's no charge to create an account or print a license. If you need to search and verify your license, you can use your state's license lookup tool.

Plan for continuing education

Continuing education is a requirement for all insurance agents in Maryland who want to renew their licenses. This means that, after getting your license, you will need to take 24 hours of continuing education (CE) every two years, including 3 hours of ethics training. These requirements may differ for non-resident license holders, who will need to adhere to the continuing education requirements of their home state.

The Maryland Insurance Administration will send a renewal notice to the email address provided in your license application. To avoid delays in renewing your license, you must complete your CE requirements at least 90 days before your license expiration date.

You can renew your license through the National Insurance Producer Registry (NIPR) for a fee of $69, with a late fee of $100.

It is important to stay on top of any changes to Maryland insurance statutes and continuing education requirements, which can be found on the Maryland Insurance Administration website.

Frequently asked questions