A career in how to become a life insurance agent often proves both lucrative and rewarding. Although producers sell a product, they protect their clients from devastating losses. Becoming an insurance producer requires time and effort. It’s not the most challenging profession to enter, but success is not guaranteed afterward. Before entering this industry, producers need to be prepared for a challenge. Then they can begin the process of becoming licensed as a producer.
To sell life insurance, an individual needs to hold their life license. These licenses are overseen and administered by a state department of insurance. Various requirements must be met before the license is granted. In most cases, this includes a few dozen hours of prelicensing and passing a licensing test. Other requirements like a background check and fees are common, too. A few months is often required to obtain this particular license.
Prelicensing often requires a lot of bookwork and self-guided studying. For licensure, individuals might be required to complete 50 hours of training. Potential producers can study the prelicensing material at their own pace. Most people will finish this work within a few weeks with daily practice. During this process, individuals learn the basics of the insurance industry and various life insurance products available to the public.
At this point, students are prepared to take on the licensure test. This particular test varies from state to state, but each test covers the basics of the insurance industry. Questions might cover specific life insurance products or laws related to the industry. Either way, most of these tests span 100 or more questions with a minimum score required to pass. If a test taker fails the test, they often have to wait before taking it again.
A few steps remain after passing the licensure test. Most jurisdictions require individuals to pass a background check. Typically, this process takes two to four weeks to run its course. The future producer then files their license application and pays the appropriate fees. They’ll then be issued a life producer license and be eligible to sell life insurance. For better or worse, licenses are required for individual states.
The only remaining step is for the producer to become appointed with a life insurance carrier. In doing so, they’re then able to sell life insurance through that carrier. They can work for an agent or work for themselves in some cases. Not everyone knows how to become a life insurance agent today. Luckily, the basic process is quite simple and straightforward. Enough time and effort can lead to someone getting their license in no time at all.
