Life And Health Insurance: Getting Licensed And Started

A life and health insurance license is a qualification that authorizes an individual to sell life insurance and health insurance products. The specific license requirements vary by state, but typically include a combination of pre-licensing education, passing a state licensing exam, and registration with the Financial Industry Regulatory Authority (FINRA). Obtaining a life and health insurance license allows individuals to work on behalf of an insurance agency or as independent brokers, selling and negotiating insurance products within their state of qualification. This license does not cover other types of insurance, such as auto, home, or property, which require separate licenses and exams.

Life and Health Insurance Licenses are state-specific

To become a licensed Life and Health Insurance agent, individuals must typically complete pre-license education, pass the state licensing exam, and apply for the license. The pre-license education requirement varies by state, with some states mandating a minimum number of hours of instruction. For example, in New York, candidates for the Life, Accident, and Health Agent or Broker license must complete a Department-approved prelicensing education course totaling at least 40 hours of instruction.

The state licensing exam is a crucial step in obtaining a Life and Health Insurance License. This exam tests an individual's knowledge of insurance products, state insurance regulations, and other relevant topics. Most states require candidates to pass this exam before applying for their license. The cost of taking the exam varies depending on the state, ranging from $40 to $150.

After completing the pre-license education and passing the exam, individuals can apply for their Life and Health Insurance License. The application process may involve submitting an application form, paying an application fee, and undergoing a background check. Some states may have additional requirements, such as registration with the Financial Industry Regulatory Authority (FINRA) or providing proof of financial responsibility.

It's important to note that Life and Health Insurance Licenses are not permanent and need to be renewed periodically, typically every two to four years. Renewal requirements, fees, and procedures vary by state, but most states require the completion of continuing education courses to maintain an active license. These courses help licensed individuals stay up-to-date with industry changes, regulations, and practices.

While the Life and Health Insurance Licenses are state-specific, some states have reciprocity agreements that allow licensed individuals from one state to obtain a non-resident license in another state more easily. It is always advisable to check with the specific state's insurance regulatory department or Department of Insurance for detailed information on their licensing requirements, exams, and renewal processes.

Pre-licensing requirements include exams and education courses

Pre-licensing requirements for a life and health insurance license vary across different states. However, there are some general requirements that cut across states. Firstly, you must be at least 18 years old to earn your license. Secondly, you must pass a state-approved pre-licensing education course. The number of hours required for this course depends on the state. For instance, in New York, candidates must complete a pre-licensing education course totaling at least 40 hours of instruction for the life, accident, and health authority, or not less than 20 hours for either life-only or accident and health-only authority.

Some states, like Alabama and Florida, offer the options of earning a life insurance license, a health insurance license, and a life and health insurance license. Each of these three types requires passing a separate exam. To qualify for a Florida license, applicants must complete and submit an application for a license with the Florida Department of Financial Services and submit the associated fees.

The topics covered in the pre-licensing courses also vary by state and their requirements. However, some common topics include basic principles, underwriting, types of policies, policy provisions, uses of insurance, and state laws. The cost of the state licensing exam is not usually included in the course price and can range from $40 to $150.

Some states require applicants to pass a background check, which may include fingerprinting. Additionally, it is important to note that a life and health insurance license does not authorize the selling of auto, home, title, or property and casualty lines. These other types of insurance require separate licensing exams and requirements as mandated by the state.

Life and Health Insurance agents can sell, solicit, and negotiate insurance

A Life and Health Insurance license is a qualification that allows agents to sell, solicit, and negotiate insurance products. This license is granted by individual states in the US, with each state having its own specific exam and requirements. For example, in New York, a candidate must complete a prelicensing education course totaling at least 40 hours of instruction for life, accident, and health authority, or 20 hours for either life only or accident and health only authority. They must then pass a licensing exam within two years of applying for the license.

Life and Health Insurance agents are licensed to sell, solicit, and negotiate life insurance annuities and/or accident and health insurance. Life insurance provides protection against the death of an individual by making a payment to a beneficiary. An annuity is an agreement that the insurance company will make periodic payments to the insured for their lifetime or a specified period. Accident and health insurance covers accidental death or personal injury, sickness, and other ailments.

Life and Health Insurance agents can also be licensed to sell variable life and variable annuity products, which are often tied to securities-backed investment vehicles. These require a license from the Financial Industry Regulatory Authority (FINRA) to market and sell. Agents must be registered with FINRA and provide their CRD number.

The license allows agents to work for an insurance agency, selling their brand of products, or as independent brokers with access to multiple brands. It is beneficial for customer service representatives and appraisers to also obtain this license as they handle much of the administrative management of these policies.

In terms of specific products, a Health Insurance license allows agents to sell Medicare Supplements (Medigap), Medicare Advantage Part C, Medicare Part D, and Long-Term Care Expense insurance. To obtain this license, agents must demonstrate knowledge of insurance and contract concepts, policy provisions, federal and state programs, and federal acts such as COBRA, HIPAA, and the ACA. They can also reach new markets through social media marketing.

Life Insurance covers death, endowment, and annuities

Life insurance is a type of insurance that provides protection against the death of an individual in the form of a payment to a beneficiary. A life insurance license allows an agent to sell, solicit, or negotiate life insurance products. These products include life insurance annuities, which are a method of paying out a life insurance death benefit in a series of regular, fixed payments instead of a lump sum.

Life insurance annuities can be a good option for beneficiaries who don't need to cover many expenses right away, as they provide a steady income stream over time. The insurer calculates the monthly payout amount based on the beneficiary's age, and payments may be smaller if the beneficiary has a long life expectancy. Lifetime annuities may also be set up to pay out the death benefit over the beneficiary's lifetime.

Annuities are a type of insurance contract that turns your money into future income payments. They are typically used for retirement and can be purchased with a lump sum payment or many payments over time. Annuities can also include a death benefit payment, which would pay out a certain amount to your heirs based on the contract terms and your balance.

While life insurance is primarily used to provide a death benefit, it can also offer cash value, which is money that the policyholder can access while alive. This cash value can be used to build savings, and the return on these savings can grow over time. However, accessing this cash value early may result in penalties and taxes, especially for modified endowment contracts (MECs) withdrawn before the age of 59 and a half.

In summary, life insurance covers death benefits and can include annuities as a payout option, while annuities are a type of insurance contract that provides future income payments and can include a death benefit. Life insurance agents are licensed to sell, solicit, or negotiate life insurance annuities and other life insurance products.

Health Insurance covers sickness, injury, and accidental death (and long-term care with additional training)

Health insurance covers sickness, injury, and accidental death, and can also include long-term care with additional training. The specific health benefits covered by health insurance vary depending on the type of plan and insurance company. Generally, health insurance provides coverage for medical care related to sickness, injury, or accident, including hospital stays, doctor visits, prescription medications, medical tests, and emergency care. Some plans may also offer coverage for preventative care, such as annual check-ups, screenings, and immunizations, as well as mental health services, substance abuse treatment, and rehabilitation services.

It is important to note that health insurance does not cover all medical expenses. Out-of-pocket expenses, including deductibles, copayments, and coinsurance, are typically the responsibility of the insured. Additionally, certain services, such as dental, vision, weight loss surgery, and cosmetic procedures, are often not covered by standard health insurance plans and may require supplemental coverage.

In the United States, health insurance is regulated at the state level, and each state has its own requirements for obtaining a health insurance license. The Life, Accident, and Health license authorizes individuals to sell, solicit, or negotiate life insurance annuities and/or accident and health insurance. Obtaining a license typically involves completing pre-licensing education, passing a state licensing exam, and meeting any additional state-specific requirements.

To become a licensed health insurance agent or broker, individuals must typically complete a prelicensing education course approved by the state's Department of Financial Services. The required number of instruction hours varies, with some states mandating at least 40 hours of instruction for the life, accident, and health authority, or 20 hours for either life-only or accident and health-only authority. After completing the required education, individuals must pass a licensing exam administered by a designated vendor within a specified time frame, such as two years.

It is worth noting that some candidates for the broker license may be eligible to waive the education requirement. For example, individuals with certain designations or degrees, such as the Chartered Life Underwriter designation or a Master of Science in Financial Services, may be exempt from the education prerequisite. Additionally, those with relevant work experience in the insurance industry or the Armed Forces may also qualify for a waiver.

Once licensed, health insurance agents and brokers can work on behalf of an insurance agency, representing a single brand, or as independent brokers offering products from multiple companies. This license, however, does not extend to other types of insurance, such as auto, home, title, or property and casualty lines, which require separate licensing.

Frequently asked questions