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When a person wishes to become a life insurance agent, they must first obtain a life insurance license in the state where the agent will be selling policies. Most states require some classroom training and an insurance agent’s exam. The candidate must successfully complete the course and pass the exam before they will receive a license to sell life insurance.
Some states allow people to sell only life insurance and, therefore, allow candidates to take a course geared toward only life insurance and pass a life insurance only agent’s examination. However, the majority of states require that a life insurance agent also learn about accident and health insurance policies as well, and that they pass an Accident, Health and Life insurance agent exam.
Before Getting a License
Most life insurance courses for agent candidates can be completed in a single day, or the course may last several days over several weeks. Generally speaking, a person can complete a life insurance agent’s course with about 8 – 40 hours of classroom instruction depending on the state where the course is offered. While the courses are not particularly long, they do pack a lot of information on the various aspects of life insurance in a very short period of time. Students are required to know the following in order to successfully complete a basic life insurance agent’s course:
- Life insurance plans (i.e. Term Life, Whole Life and Universal Life policies)
- The life policy general terms and conditions
- State Policy owner's rights
- Annuities and tax favored retirement plans
- State life insurance laws, rules and regulations for the state where the agents wishes to sell policies
- State Licensing laws and other statutes
In addition, if the state required that the agent be licensed for accident and health coverage as well, the course will normally provide additional instruction on:
- Accident and health insurance basics
- Standard health provisions
- Group insurance
- Federal government insurance programs
- State health insurance laws, rules and regulations
Knowledge Takes Time
Life insurance agents receive many hours of instruction and training in a very short period of time. Although they are certainly more knowledgeable about life insurance basics and procedures than every day consumers, they are not well versed in life insurance principals and ideology. However, in order to for a life insurance agent to become knowledgeable about the various plans and options offered in the life insurance industry, the newly licensed agent will need to spend a considerable amount of time getting their feet wet with a company and actually begin selling and writing life insurance policies.
Because various life insurance companies sell varies types of life insurance plans and offer different rate programs and have different risk modeling and underwriting methods, no one life insurance agent will be aware of all types of life insurance options that may be available to you. It is imperative that when shopping for life insurance that you seek out several agents and discuss the company offers before choosing an agent or insurer.
