Life & Health Insurance License Study Courses

A life and health insurance license is a state specific legal authorization or credential that allows a person to sell life and/or health insurance policies and related financial products in a particular state. Insurance regulations and licensing requirements can vary from state to state, so the specific details can differ, but the following are some general points that are quite common in most states.

State Licensing Authority

Typically, state insurance regulatory departments are responsible for issuing and regulating insurance licenses. In the United States, for example, the licensing department is usually the state's Department of Insurance. The Department of Insurance usually works with third-party agencies, such as license exam providers and license application agencies (ie; Pearson Vue, PSI, Sircon, NIPR).

Insurance License Types

There are a few different types of life insurance licenses, and the specific type you need depends on the insurance products you intend to sell. For life insurance, you would typically need a "life insurance license". Some licenses may also cover related products like annuities, as they do in Florida and a few other states. But either way, you'll be able to sell life insurance once you obtain the license in your state.

The health insurance license is also diverse. With the license, you can not only sell health insurance policies, but also disability income insurance, accident insurance, Medicare, or long-term care coverage.

General Requirements

To obtain a life and health insurance license, you generally need to meet certain requirements, which can include completing pre-licensing education courses, passing a state licensing exam, undergoing a simple background check, and in rare cases, being sponsored by an insurance company or agency (which is uncommon). The process is fairly simple, but you will need to be motivated to accomplish the tasks.

Continuing Education

Once you've been licensed, people are often required to complete ongoing continuing education courses every 2-4 years (depending on your state's requirement) to stay up-to-date with industry regulations and practices. CE (continuing education) is usually quite simple to complete, and doesn't require any additional exams or steps.

Renewal

Insurance licenses are not typically permanent and need to be renewed periodically, usually every 2-4 years. Renewal requirements, fees, and procedures can vary by state, and continuing education typically covers the renewal requirement. But we do suggest that your check with your state's insurance authority for details.

Recirpocal Licenses

Licensing guidelines can vary a little from state to state, so someone licensed in one state may not automatically have the ability to sell insurance in another state without meeting that state's specific licensing requirements. Some states allow reciprocity of other state’s licenses, but not all. Be sure to check with the state's Department of Insurance to see if your license is valid in their state. You may be able to obtain a non-resident license.

Costs

What costs are involved? While the costs do vary from state to state, here's an estimated range of the fees that you will likely pay. But remember to check with your state insurance authority for the steps and fees involved. You can also contact us directly for fee information in your state.

• License Study Course: $40-$70
• License Exam: $30-$80
• Fingerprints: $10-$40
• State Application: $5-$50

Final Thoughts

It's important for individuals seeking to become life and health insurance agents or brokers to research and understand the specific licensing requirements in their state and comply with all the necessary regulations to operate legally. Selling insurance without the proper license can result in legal and/or monetary consequences. It’s best to complete a pre-licensing course to not only help you prepare to pass your exam, but to also learn the state rules and regulations.