Selling Life Insurance In Texas: A Guide To Success

If you're looking to sell life insurance in Texas, you'll need to become a licensed insurance agent. While you don't need a college degree or prior industry experience, you must pass an exam and obtain a license to practice. Texas has no prelicensing education requirement, but due to the rigor of the exam, taking a preparation course is highly recommended. The exam will cover primary types of insurance products and state laws and regulations for insurance professionals. You'll also need to get fingerprinted and pass a background check. It's important to note that there are different licenses for different lines of insurance, so make sure you're studying for the right exam. With the right determination and grit, you can succeed in this field and help make a difference in people's lives.

Texas insurance licensing requirements

To sell life insurance in Texas, you must obtain a Texas insurance license. Here are the steps to obtaining a Texas insurance license:

Step 1: Decide Which Insurance Licenses You Need

The type of insurance policies you want to sell will dictate the type of license you need. For example, you need a Property & Casualty (P&C) license to sell auto, home, or business insurance. Texas offers several different types of insurance agent licenses, including:

• Funeral pre-arrangement life
• General lines – life, accident, health and HMO
• General lines – property and casualty
• Life insurance not exceeding $25,000
• Managing general agent
• Personal lines property and casualty

Most insurance agents obtain either a Property and Casualty (P&C) or Health and Life license, or both to offer clients a wider range of products.

Step 2: Complete a Pre-Licensing Education Course

Although Texas does not require pre-licensing education hours to sit for the licensing exam, it is highly recommended to help you pass the exam on your first attempt. Pre-licensing education courses offer features such as live tutoring, study calendars, and practice exams to enhance your understanding of the material.

Step 3: Pass the Relevant Texas Insurance License Exam(s)

After completing your pre-licensing education course, you will need to take and pass the relevant Texas insurance license exam. The exam will depend on the line you wish to specialize in. All insurance exams in Texas are multiple-choice and are administered by either Pearson VUE or the insurance company you plan to work for.

Step 4: Complete a Fingerprinting and Background Check

Before submitting your insurance agent license application, you need to send your fingerprints to the DPS and FBI. This process is completed through IdentoGO and costs $41.45. It initiates a background check to confirm you meet the state's insurance agent regulations.

Step 5: Submit Your Insurance License Application

Once you have passed your state licensing exam and completed your fingerprinting, you can apply for your license. In Texas, applications are submitted online through Sircon or the National Insurance Producer Registry for a fee of $50 (plus a small transaction fee). If you have passed exams for multiple lines of authority, you must submit an application and pay a filing fee for each.

How to pass the Texas insurance exam

To sell life insurance in Texas, you'll need to pass the Texas Insurance Licensing Exam. Here's a detailed guide on how to pass this exam and kickstart your career in insurance sales:

Step 1: Understand the Exam Structure

The Texas Insurance Licensing Exam is a multiple-choice test, so you won't have to worry about fill-in-the-blank or essay questions. The exam covers two main sections:

• National Insurance Section: This section focuses on the primary types of insurance products, such as life insurance, health insurance, property insurance, and casualty insurance.
• State Rules Section: Here, you'll be tested on Texas-specific laws and regulations for insurance professionals.

The questions are randomly scrambled, covering various topics within these two sections.

Step 2: Familiarize Yourself with the Exam Format

The Texas Insurance Licensing Exam is a computerized test administered by Pearson VUE. It consists of multiple-choice questions, with a mix of definitional (terminology) questions, numerical (dollar amounts and number of days) questions, and practical scenario-based questions.

The number of questions varies depending on the type of license you're seeking. For example, the Texas Life Only exam has 95 questions, while the Texas General Lines Property and Casualty exam has 150 questions.

You'll need to score at least 70% to pass the exam. This combined score applies to both the national and state sections.

Step 3: Choose a Preparation Course

While Texas doesn't require prelicensing education, it's highly recommended that you enroll in a preparation course to increase your chances of passing. Companies like ExamFX, Kaplan, and America's Professor offer comprehensive insurance license education solutions. These courses can provide interactive assessments, multimedia content, and customized learning paths to suit your needs.

Step 4: Study Strategically

• Watch lectures and listen to explanations of key concepts.
• Highlight and make notes on important definitions, laws, and regulations.
• Review practice questions and sample exams to identify areas that need improvement.
• Reach out to the course provider if you have any questions or clarifications.

Step 5: Schedule Your Exam and Fingerprinting

When you feel ready, it's time to schedule your exam. Contact Pearson VUE to book your exam slot. Walk-ins are not allowed, so be sure to schedule at least three days in advance to increase your chances of getting your preferred date.

Additionally, don't forget to schedule your fingerprinting appointment through IdentoGO or MorphoTrust. Fingerprinting is a mandatory step in the licensing process, and you can schedule it concurrently with your exam preparation.

Step 6: Take the Exam

On the day of your exam, arrive at the Pearson VUE testing center with two valid forms of government-issued identification, one of which must include a photograph and a signature. You will not be permitted to take the exam without proper identification.

During the exam, carefully read each question and review the answer choices. Since it's a multiple-choice test, you can employ strategies like process of elimination to narrow down the options. Remember, you need to answer at least 70% of the questions correctly to pass.

Step 7: Apply for Your License

Once you've passed the exam, the next step is to apply for your insurance license. In Texas, you must apply for your license online within one year of passing the exam. Visit the Texas Department of Insurance website for more information on the application process.

Step 8: Stay Up to Date with Continuing Education

Maintaining your license requires ongoing education. Be sure to stay on top of your continuing education requirements by completing the necessary credit hours of continuing education (CE) each licensing period. This will ensure that you remain compliant with state regulations and can continue your career as a licensed insurance agent in Texas.

How to apply for a Texas insurance license

To apply for a Texas insurance license, you must:

• Complete an Insurance Prelicensing Course: While the state of Texas does not require prelicensing education, it is highly recommended that you enroll in a study course due to the difficulty of the licensing exam. You can apply for a temporary 90-day license without prelicensing education, which allows you to be licensed before passing the examination and receiving a permanent license.
• Pass the Texas Licensing Exam: This exam is provided by Pearson VUE and covers the primary types of insurance products and state laws and regulations for insurance professionals. Depending on the license(s) you're applying for, the exam will have 100-150 questions, and you'll need to answer 70% correctly to pass.
• Get Fingerprinted: You will need to schedule an appointment with MorphoTrust and get fingerprinted. Your application will be processed once the Texas Department of Insurance (TDI) receives your criminal history reports from the state department and the FBI.
• Apply for the License: You can apply for the license through the National Insurance Producer Registry. The application fee is $50. Note that you must apply for the license within one year of passing the exam; otherwise, you will need to retake it.

The pros and cons of being an independent insurance agent in Texas

Being an independent insurance agent in Texas has its benefits and drawbacks. Here are some key points to consider:

Pros:

• Self-directed career: As an independent agent, you are your own boss. You can work remotely, set your own hours, and manage your day-to-day activities without anyone looking over your shoulder.
• Unlimited income potential: Independent insurance agents have the potential to earn a higher income compared to captive agents. Your earnings are directly tied to your skills and work ethic, with the possibility of earning commissions and bonuses.
• Diverse product line: You can represent multiple insurance companies and offer a diverse range of products to your clients. This allows you to create custom plans that fit your clients' unique needs, making it easier to close leads and retain clients.
• Flexibility and freedom: You have the freedom to set your own schedule and decide which services you want to offer. You can also choose which companies to partner with and design your own marketing strategies.
• Building client relationships: As your clients' insurance needs evolve over time, you can become their trusted advisor. By providing them with the best options for their unique situations, you can build lasting relationships and gain loyal clients who return to you for advice and referrals.

Cons:

• No direct supervision: While some people thrive without a boss, others may find it challenging to work without direct guidance and leadership, especially when starting their careers.
• Unstable income: Your income may vary from week to week, and you may experience streaks and slumps. Budgeting and financial management skills are crucial to navigate these fluctuations.
• Extensive learning curve: Becoming an independent insurance agent requires a significant amount of learning. You need to pass state licensing exams and stay up-to-date with multiple companies' products and offerings. This ongoing education can be daunting for some.
• Developing new clients: Building a client base can be challenging, especially for those who are not natural networkers or comfortable with pitching and nurturing relationships.
• Financial challenges: Starting an independent insurance agency requires capital and ongoing business expenses, which can be a financial burden while trying to establish your business.

Overall, becoming an independent insurance agent in Texas offers flexibility, control, and the potential for high earnings. However, it also comes with challenges such as an unstable income, a steep learning curve, and the need to constantly develop new business. Weighing these pros and cons can help you decide if this career path aligns with your goals, skills, and preferences.

How to get started as an insurance agent in Texas

If you're looking to get started as an insurance agent in Texas, there are a few key steps you need to follow. Here's a detailed guide to help you get started:

Step 1: Decide on the Type of Insurance License You Need

First, you need to determine the type of insurance policies you want to sell. This is important because the license you need will depend on the type of insurance you plan to sell. For example, if you want to sell auto, home, or business insurance, you'll need a Property and Casualty (P&C) license. Texas offers a range of insurance agent licenses, including Funeral pre-arrangement life, General lines – life, accident, health and HMO, and Life insurance not exceeding $25,000. Most insurance agents in Texas obtain either a P&C or Health and Life license, or both to offer a wider range of products to their clients.

Step 2: Complete a Pre-Licensing Education Course (Optional but Recommended)

While Texas does not require pre-licensing education hours, it is highly recommended that you take a pre-licensing course to prepare for the licensing exam. These courses offer features like live tutoring, study calendars, and practice exams, which can enhance your understanding of the material and increase your chances of passing the exam on your first attempt. Popular options include ExamFx, Kaplan, and XCEL.

Step 3: Pass the Relevant Texas Insurance License Exam(s)

To get your Texas insurance license, you need to pass the relevant exam(s). These exams are multiple-choice and are administered by either Pearson VUE or the insurance company you plan to work for. The number of questions on the exam will depend on the license you're applying for, ranging from 100 to 150 questions. You need to answer at least 70% correctly to pass. It is recommended to focus on one exam at a time and allow sufficient study time, typically between two to six weeks.

Step 4: Complete a Fingerprint and Background Check

Before submitting your license application, you need to initiate a background check by sending your fingerprints to the DPS and FBI through IdentoGO. This process costs $41.45 and ensures you meet the state's insurance agent regulations. You will receive a receipt during your fingerprinting appointment, which you must attach to your license application.

Step 5: Submit Your Insurance License Application

Once you've passed your exam and completed the fingerprinting process, you can submit your license application online through Sircon or the National Insurance Producer Registry. There is a $50 application fee (plus a small transaction charge). If you've passed exams for multiple lines of authority, you'll need to submit a separate application and pay the filing fee for each. The entire application process typically takes three to five weeks, but it can take longer if there are issues with your background check.

Step 6: Maintain Your License

Once you've obtained your Texas insurance license, remember that it needs to be renewed every two years. This involves completing continuing education credits and paying a renewal fee. In Texas, you must complete either 10 or 24 hours of continuing education, including a minimum of three hours on Ethics, to keep your license valid.

Frequently asked questions