How to Obtain Life and Health Insurance License?

Read this article to get information that will help you understand how to obtain life and health insurance license.

To obtain a life and health insurance license, you need to complete a pre licensing course first. For instance, if you are an insurance producer and want to sell insurance then you can not do so or proceed further without passing a licensing exam. Moving on, you need to get fingerprinted too as unlicensed applicants are required to make fingerprint impressions.

Moreover, you are required to make exam reservations and pass the licensing exam. Once you’ve cleared all the above mentioned stages, you can apply for the license

To get your life insurance license you must pass the exam and meet other life insurance license requirements too.

All your queries related to life insurance license requirements like life and health insurance license cost, life insurance license exam questions like exam difficulty, passing score, pass rate, weightage, and topics, are all answered in this article to help you understand how to obtain life and health insurance license.

Life insurance license requirements

You need to be at least 18 years old to fulfill one of the main life insurance license requirements, which in most states is offered as a joint life and health insurance license. Let’s look at the life insurance license requirements one by one.

You need to complete the prelicensing education required to qualify for a life and health insurance license, by the state you want to become licensed in. The number of hours you’ll have to complete and life and health insurance license cost vary by state. However a few states do not require prelicensing education, so before you proceed with prelicensing education, check with the state’s insurance organization first.

To pass life insurance license exam questions, pre licensing exam preparation packages or life and health insurance license classes would be quite helpful.

Make an effort to do a background check. The process of obtaining a life and health insurance license varies by state and, in some cases, includes fingerprinting.

Furthermore, you are required to have a high school diploma or an equivalent, and know where you want to sell insurance and what the state requires. Let’s suppose, it’s not the state where you currently reside, then you should check to see if you are required to be a resident for a certain amount of time before taking the exam or not. A good way to find the different names that the bodies of government in charge of regulating insurance have, is to go to the official website of the state and search for the life insurance license requirements.

Moreover, make sure to completely understand and meet the specific state exam life insurance license requirements. In many states, you must complete a specified amount of prelicensing education hours.

Timely, register for the exam, and for life and health insurance license classes which includes paying a registration fee determined by each state.

What can I do with a life and health insurance license?

With a life insurance license you can sell annuities, term, and cash value (commonly called whole or universal) life insurance. A life and health insurance license permits you to sell life insurance products, plus policies that cover protection for medical expenses, loss of income due to a disability, and the need for long-term care.

Some states have different licenses for life insurance, health insurance, and a combined life and health insurance. Each of the three types require passing a separate exam. While a few states have separate licenses for life and health but not a combination, and each requires passing a separate exam. However, mostly states have a combined life and health insurance license only.

All you need to do to become a life insurance agent is obtain the life insurance license. Life insurance agents utilize their relevant license to sell life insurance policies and annuities, and work with clients and beneficiaries to process claims.

Life insurance agents do a lot of selling, so it’s significant to bear a marketing interest and have a passion for it. For life insurance agents remarkable interpersonal and communication skills are quite important as they have to explain the ins and outs of all the products in a way that is easy to understand as they convince the opposite party to buy from them.

Life insurance agents are of two types: captive who work exclusively for one insurance company, or they can be independent which implies that they can sell products from multiple companies.

How hard are the life insurance license exam questions?

The test varies from place to place as each state has its own insurance exam, so they vary making life insurance license exam questions complicated to answer. However, the course outline, syllabus, passing rate, and marking scheme, is similar for all states. No matter where you take it, the test is not a piece of cake. Only if you have a good understanding of the topics, you have a good chance of passing the life insurance exam and fulfilling the life insurance license requirements.

You have a leverage to choose the date and time of your life insurance exam in most states. Scheduling options are updated on the respective state’s department of insurance website. We would strongly advise you to schedule your exam at least two weeks in advance, in order to give yourself ample time to study.

The life insurance exam is computer-based in all states.

Life insurance license exam questions consist of 105–150 multiple-choice questions, depending on whether it is a separate exam or combined with health. That is also dependent on the state.

On average, candidates study for the life insurance exam for about 35 to 40 hours, and the passing score is 70 percent in all states.

The passing rate for life and health insurance exams is broad. It ranges from the lowest passing rate of 40 percent, to the highest passing rate of 87 percent. However, the majority of states recorded passing rates in the range of 60–67 percent.

You will be informed if you passed or failed the exam at the testing center, then and there. However, you cannot register to take it again at that time. Instead, you are required to wait for 24 hours before you can register again. It is permissible to take the exam thrice per year. And if you fail it all three times, then you will unfortunately have to complete prelicensing education again before you can take it for a fourth time the following year.

Life and health insurance license classes

The life insurance exam tests you on specific topics, and these classes help you develop an understanding of the topics, and the criteria of their respective weightages.

Following is a list of the life insurance topics you are most likely to be taught in life and health insurance license classes, and tested on in most states:

  • Life insurance general knowledge
  • Life insurance policies
  • Policy riders and options in life insurance coverage
  • Life insurance tax issues
  • Annuities
  • Annuity policy tax issues

However, if you are taking a combined exam, there will be health insurance topics along with the above mentioned topics.

How much does a life and health insurance license cost?

The cost to take the exam ranges from $43–$150, and varies from state to state which is updated on the state’s insurance licensing website every now and then. Note that this cost to take the exam is not inclusive of the license application fee.

Conclusion

Moreover, you should learn your state’s requirements and get your hands on the exam outline before applying for the license. Check with the department of insurance in your state (or the state where you’ll be working) for the requirements and the outline, and keep a hard copy with yourself.

Strictly follow a study plan. Instead of cramming for the life insurance exam, draft a realistic plan that is easy for you to stick to and gives you ample time to study with a good peace of mind. Life and health insurance license classes can help you stay on track so you don’t panic at the last minute.

Prepare and practice again and again. Make sure to take practice exams that will help you determine how well you have absorbed the material and highlight where you’re lagging behind for your own benefit.

Most importantly, stay calm while taking the exam. Read and understand each question carefully and thoroughly before attempting it. Find the questions you know the answer to, and answer them first. If you find yourself stuck on any question, move on and come back to it later.

We are quite confident that this article responds to your queries regarding all the life insurance license requirements. And perhaps, now you know exactly how to obtain life and health insurance license.

Nabeel Ahmad

Nabeel Ahmad

Nabeel Ahmad is the founder and editor-in-chief of Insurance Noon. Apart from Insurance Noon, he is a serial entrepreneur, and has founded multiple successful companies in different industries.

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