How To Become A Life Insurance Agent

How To Become A Life Insurance Agent

Selling life insurance is a rewarding career as there is amazing growth potential. The job of a life insurance agent is to explain the intricacies of the policies they are selling in a lay man’s terms. An agent can sell independently or work exclusively for one company. Maybe you do not know what it takes to start this job. Here are a few basic steps on how to become a life insurance agent.

Licensing and Training

You need a license to start selling life insurance. Depending on the state you are in, you can choose from various types of licenses. Examples include life-only, producer, accident, and health insurance licenses. To get the license, you must undergo a pre-license training and pass the test. The length of the study once again depends on your particular state. You will be trained on code and ethics and other matters of health insurance. When you earn the first license, the next training is on Continuing Education that allows you to maintain your license.

Life Insurance Exam

Armed with license and the right knowledge, you should be ready to take an examination and pass. Each state sets a unique exam and the tests differ significantly. However, the underlying topics covered on the tests and the scoring systems are similar in all states. But it is never an easy thins so it is crucial to have a thorough understanding of the covered topics such as:

• General knowledge of life insurance policies
• Tax issues underpinning life insurance
• Annuities and annuity policy tax
• Policy options and riders in life insurance
• Health insurance

There are certain requirements you must fulfill before taking the life insurance exam. First, you should be a holder of a high school diploma or any equivalent qualification. Also, understand where you will be selling the policies and the requirements of that state. Check whether you are required to be a resident of a particular state to how to become a life insurance agent there. There are various insurance regulating bodies and it is good to find out the licensing rules from the official websites.

When registering for the exam, a registration fee may apply and is determined by the state. You can also choose the exam schedule so as to get ample study time. But make sure you have selected the exam time to be at least 2 weeks beforehand and know the exam center.

Apply at Insurance Agency

Once you meet all the requirements, you are now eligible for employment. Look for jobs at brokerages and insurance agencies. This could be popular insurance providers or local brokerages. Do your research to know the requirements for candidature. Some companies can hire you as you wait for the license to mature but you have to follow specific steps.

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