How to Obtain a Life and Health Insurance License: Requirements and Process

Author:Shelden SmollanChief Experience Officer
Shawn Redford
Reviewed by:Shawn RedfordChief Business Development Officer
September 15, 2023
7 Minute Read

If you want to be an insurance agent in the US, you must get a license for life, accident, and health insurance.

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Becoming a Licensed Life and Health Insurance Agent: Steps, Tips, and Insights

If you want to be an insurance agent in the US, you must get a license for life, accident, and health insurance. This license is like a golden ticket, giving you access to various insurance policies to sell. And this is not just about getting a job; it also helps you make a positive impact on the community. 

Choosing the path of an insurance agent in the US can be a journey that’s both financially rewarding and personally enriching. We’re going to show you how to get one.

What is a Life and Health Insurance License? 

The license enables insurance representatives to market life and health insurance policies to their customers. Life insurance plans typically encompass death compensation and aspects of savings or investments, whereas health insurance plans provide protection for healthcare costs.

Explanation of Life and Health Insurance License

A Life and Health License in the USA is a professional certification that allows agents to sell and provide advice on various life and health insurance policies and products. This agent license is required by state authorities to ensure that insurance agents have sufficient knowledge and expertise to serve the public in specific locations.

Demystifying the Life and Health Insurance License: What You Need to Know

Here are some key points about the Life and Health License:

Scope of Coverage: This license covers three main areas of insurance:

  • Life Insurance: Provides financial stability to the dependents of the policyholder after their demise.
  • Accident Insurance: Provides income protection for incidences such as injuries, disability, and unintentional death.
  • Health Insurance: Manages expenses associated with medical treatments, hospitalization, and other health-related costs. 

Licensing Requirements: The prerequisites to secure a Life and Health License differ across states. Nonetheless, typical requirements include:

  • Completing a pre licensing education course: Candidates must complete a specified number of hours of coursework covering insurance principles, ethics, policy types, and regulations. 
  • Passing a state licensing exam: Individuals must pass a life and health insurance exam administered by their state’s insurance regulatory authority. The exam assesses knowledge of insurance concepts, laws, and regulations. 
  • Background check: Some states require candidates to undergo a criminal background check for each life and health insurance agent.

Responsibilities and Opportunities: Holding a Life and Health Insurance License enables individuals to work as insurance agents or brokers. They can:

  • Sell life, accident, and health insurance policies to individuals and businesses.
  • Advise clients on suitable coverage options based on their needs and budget. 
  • Assist clients with claims and policy-related inquiries. 
  • Keep abreast with the latest industry trends, product updates, and regulatory changes to deliver precise information and guidance. 

Continuing Education: Once licensed, life insurance agents need to fulfill ongoing continuing education requirements. These requirements ensure that agents stay abreast of industry changes, new products, and evolving regulations.

Regulatory Oversight: The licensing and regulation of insurance agents in the USA are overseen by individual state insurance departments or commissions. These entities establish and enforce rules to protect consumers and maintain the integrity of the insurance industry.

It’s important to note that specific details and requirements may differ by state. Therefore, insurance professionals should consult their state’s insurance department for the latest information regarding licensing procedures and requirements.

Life Insurance License and Health Insurance License 

If you want to sell life insurance policies, you need a Life Insurance License. Similarly, if you want to sell health insurance policies, you need a Health Insurance License. However, to sell both types of insurance, you need a Life and Health Insurance License, which is considered a dual license. 

How do I get my Life and Health Insurance License? 

Getting an Insurance License in the USA is a process that involves pre licensing requirements, application requirements, and passing the Life and Health insurance state’s exam. 

Qualifying for the Life and Health Insurance License

Each state has its own set of requirements for obtaining a life and health license. Generally, candidates must complete pre-licensing education specific to their state’s requirements, pass a state insurance exam, and meet all other requirements set forth by their state’s Department of Insurance. It’s important to verify the requirements for each state before taking any steps toward obtaining a license. 

State Requirements

Insurance Pre-Licensing Course Requirements – State-approved pre-licensing course

To be eligible for the Life and Health Insurance Exam, candidates must meet pre licensing requirements in their state. The state requirements vary, but typically involve completing a certain number of hours for each insurance pre licensing course. 

Application Requirements for the exam

Finding the right education provider and studying effectively for the exam are critical steps in obtaining a life and health license. Candidates should apply online to register for the state exam and complete any additional requirements, such as a criminal background check, before taking the final exam. The exam consists of many questions, and it’s vital to be properly prepared to do well to pass the state exam.

Fees and Renewal Period

After passing the exam and obtaining their license, insurance agents must pay a fee for the  license application and adhere to renewal periods to keep their license in good standing. 

How to Prepare for the Life and Health Insurance License Exam? 

To prepare for the Life and Health License Insurance State Exam, candidates must complete a pre-licensing course offered by approved insurance pre-licensing education providers. These courses cover topics like pre-licensing education requirements, insurance requirement regulations, insurance products, contract provisions, and risk management. Candidates can also take practice exams on the exam simulator to prepare for the actual state licensing exam. 

Sales tips for insurance agents

Benefits of Obtaining a Life and Health Insurance License

The benefits of obtaining a life casualty and health license can be seen on multiple levels at any insurance agency or insurance company. First, greater job opportunities, since insurance agents are in high demand. The earning potential is also higher, with many becoming high-income earners within the field. Finally, obtaining a license allows insurance agents to provide vital services to their clients and communities, protecting people from life’s uncertainties. 

Do I Have to Get Both Licenses? 

No, you do not have to obtain both licenses. Insurance agents can choose to specialize in selling either life insurance or health insurance policies. 

In summary, obtaining a life and health insurance state license is essential for anyone wishing to work in the insurance industry. It opens doors to better job opportunities, helps people become financially secure and independent, and enables agents to serve their communities. It is our hope that aspiring insurance agents will take the steps to obtain this valuable license and be part of this important community.

Chartered Life Underwriter Designation

Looking to specialize in life insurance? Become a Chartered Life Underwriter (CLU)! This prestigious certification is recognized as the gold standard in the industry. To earn your CLU, you’ll need to apply online and pass 10 comprehensive tests that cover all aspects of life insurance. 

This typically takes candidates anywhere from 15 to 24 months. But don’t worry, years of experience in insurance and completing courses will set you up for success. Once you’ve obtained your certification, engaging in continuing education every two years will ensure you stay at the forefront of your field.

Chartered Life Underwriter (CLU)

It’s your responsibility to educate and help your clients select the right policies for their unique needs. By understanding the types of policies available, how to choose the right one, you can help your clients secure their financial future.

FAQ Frequently Asked Questions About Insurance Licenses 

Which insurance license is the hardest to get?

The level of difficulty of the application process for obtaining a Life and Health License depends on an individual’s prior knowledge and experience, as well as the state’s pre-licensing course requirements. 

What is the best insurance license to have? 

The best insurance license to have depends on the individual agent’s interests and career goals. A Life and Health License can provide agents with a broader range of products to sell. 

How to get a Life and Health Insurance License in North Carolina? 

To get a Life and Health License in North Carolina, candidates must complete pre-licensing courses and pass the state’s licensing state exam. Candidates must also submit an application and pay a fee. 

How much is a Life and Health Insurance Pre Licensing course in Florida? 

The cost of a Life and Health License in Florida varies depending on the pre licensing course selected and the state’s licensing fees. Candidates can expect to spend a few hundred dollars to obtain their license. 

How do I get a Life and Health Insurance License in Alabama? 

To get a Life and Health License in Alabama, candidates must complete a pre-licensing course, submit a license application, and pass the state’s licensing exam. Candidates must also pay a fee and adhere to renewal periods. 

In conclusion, obtaining a Life and Health License is essential for those who want to start their insurance career in the USA. Agents can choose to specialize in either life insurance or health insurance or opt for a dual license. Preparing for the licensing exam is crucial, and candidates should consider taking pre-licensing courses and practice exams. 

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Shelden Smollan
Shelden Smollan, Experior Financial Group's Chief Experience Officer, has spent more than 45 years working in the fields of Life Insurance and finance. He is an excellent insurance sales and management executive with exceptional strategic thinking, marketing, and leadership abilities. He has been Experior Financial Group Inc.'s Chief Experience Officer for the past six years, and his vision and expertise have been instrumental in the company's growth and development. By arranging meetings between agents and carriers so that our team of associates can learn from them and draw inspiration from them, he has assisted our IMO in expanding.