Life Insurance Exam: What You Need To Know

A life insurance exam is a test that individuals must pass to become licensed life insurance producers. The exam covers a range of topics, including life insurance general knowledge, policies, tax issues, and state-specific regulations. It is designed to assess a candidate's knowledge and understanding of life insurance regulations and requirements to ensure their success in the role. The exam can be challenging, but with proper preparation and a good study plan, individuals can increase their chances of passing.

Exam structure and content

The life insurance exam is designed to test a candidate's knowledge and understanding of life insurance regulations and requirements, and to ensure their success as a licensed insurance producer. The exam covers a lot of information, and it will take some time to master the material. However, with the necessary effort, most candidates can pass on their first try.

The exam is regulated by each state's department of insurance, so the specific content and structure may vary depending on the state. It is important to review your state's exam content outline to become familiar with the requirements. Some states may require completion of a life and health insurance course before you can register for the exam.

• Life insurance general knowledge
• Life insurance policies
• Policy riders and options in life insurance coverage
• Life insurance tax issues
• Annuity policy tax issues
• Health insurance general knowledge (if taking a combined exam)

The state exam outline will provide details on how these topics are weighted and the number of questions included in each section. It is recommended to focus more of your study time on the sections with a higher number of questions.

In addition to the general topics, the life insurance exam may also include unique state-specific requirements and regulations. For example, some states may have specific requirements for licensing candidates, such as completing prelicensing education before taking the exam or requiring a sponsor to take the exam.

The life insurance exam is typically a multiple-choice format and is administered via computer. The number of questions, time limit, and minimum passing score may differ by state. However, the passing score is generally set at 70%.

To increase your chances of passing the life insurance exam, it is recommended to devote around 35 to 40 hours of study time. Cramming is not advised; instead, create a study plan and stick to it over several weeks. Enrolling in an exam preparation review course, either live classes, online courses, or self-study books, can also improve your chances of success.

Study plans

The life insurance exam is challenging, with tricky concepts and jargon, and it covers a lot of information. It is recommended that you spend 35 to 40 hours studying for the exam, and you should not leave it until the last minute to cram. Instead, you should spread your study time over a few weeks, focusing on one topic at a time.

Firstly, you should check your state's requirements and get the exam outline. Each state has different requirements and types of exams, so you need to be sure you are studying the right material. You should also print the exam outline for your state, which will tell you how many questions are included in each section of the test, and how they are weighted. This will help you to focus your studies on the sections with the most questions and the highest weightings.

Next, you should make a study plan. You could use an insurance certification study package to help you stay on track, or you could create your own plan. One source recommends spending 7-8 hours per day for a full week studying in the week leading up to the exam. If this is not possible, you should aim for 3-4 hours of study time per day, starting around two weeks before the exam. Another source recommends setting up a study calendar and sticking to it.

You can also enrol in an exam prep course, which will greatly improve your chances of passing. These are offered by various providers and can be taken as live classes, online courses, or self-study with printed books.

Finally, you should test your knowledge with practice quizzes and mock exams. These will help you to identify areas that require further study, and will also help you to manage your time effectively during the exam.

Practice tests

When taking practice tests, try to answer questions without relying solely on memorization. The actual exam questions may be phrased differently or designed to be tricky, so understanding the underlying concepts is essential. Go back and review the material if you find yourself simply memorizing answers instead of grasping the broader concepts.

Online resources, such as ExamFX, offer custom study calendars and practice tests to help you prepare. Additionally, some users on Reddit have recommended sources like insuranceexamqueen.com, insuranceexamacademy.com, and exam fx readiness exams as useful tools for practicing.

It is also beneficial to take practice tests from different providers to expose yourself to a variety of questions and formats. This will help you become more comfortable with the exam structure and content, increasing your chances of passing on the first try.

Remember, practice tests are just one part of your preparation journey. Combining them with a solid study plan, a good understanding of the material, and test-taking strategies will give you the best chance of success on exam day.

Exam day expectations

On the day of your life insurance exam, you should arrive at the test centre at least 30 minutes early. You will be required to store your belongings in a locker before being assigned a testing cubicle. An employee will then explain the expected conduct to you.

The exam will be multiple choice and administered via computer. Take your time to answer the questions, and read each question carefully and thoroughly before answering. Most questions will contain a lot of detail and qualifying information. Try to focus only on the information in the question and avoid making assumptions to fill in the blanks.

Answer the questions you know first, and if you get stuck, move on and come back to it later. Don't leave any questions blank—if you can eliminate any of the multiple-choice options that you know are incorrect, you will increase your chances of guessing the correct answer.

If you take the exam online, you will need to meet certain technical requirements. Prepare your personal computer or laptop in advance, and ensure you test your microphone and camera before the exam.

Tips for answering questions

The life and health insurance exam is challenging, with tricky concepts and jargon that you may be unfamiliar with. Here are some tips to help you answer the questions:

• Read each question carefully and thoroughly before answering: Most questions will contain a lot of detail and qualifying information. Try to focus only on the information in the question and avoid making assumptions to fill in the blanks.
• Answer the easy questions first: Find the questions you know the answers to and answer them first. If you get stuck, move on and come back to it later.
• Don't leave any questions blank: Guessing still gives you a 25% chance of getting it right. If you can eliminate any of the multiple-choice options that you know are incorrect, you will have a better chance of guessing the correct answer.
• Pace yourself: Take at least one practice exam under testing conditions to determine whether you are allocating your time effectively.
• Understand the material, don't memorise: While practice exams are useful, it's important to remember that the actual exam questions may be phrased differently and designed to throw you off. You need to understand the underlying concepts so that you can answer any question, no matter how it is phrased.

Frequently asked questions