If you’re interested in starting a career in life and health insurance sales, you’ll need to clear a few hurdles first. Requirements to sell life and health insurance vary by state, but all include the need to obtain an insurance license. Research, commitment, and hard work go into getting a life and health insurance sales license, but it’s not too hard to do when you know how to prepare.
Before you go looking for your health insurance license, it’s critical to understand the exam requirements, how to keep your license active, and tips to help you pass on the first try. Becoming a licensed life and health insurance agent is within your reach; just follow these guidelines to reach your goal.
Reading: How to pass health insurance exam
examination requirements to sell life and health insurance
Registration for life and health insurance exams is state specific. therefore, the first step in understanding the exam requirements is to research your particular state. Start by looking for the department of insurance within any state where you plan to sell insurance.
The life and health insurance exam is one of many different topics that each state insurance department will offer. The specific exam will test your knowledge of both types of insurance. Passing the exam, in addition to meeting other requirements, will allow you to obtain your license and start selling policies. Other requirements for obtaining a life and health insurance license include:
- be over 18 years old
- have a high school diploma or equivalent
- full hours of pre-licensing education, if applicable for your state
- details of life and health insurance policies
- tax matters related to life insurance, annuities and medical insurance
- disability income
- health maintenance organizations (hmos)
- additional clauses of the policy that affect life insurance coverage
- medical plans, including dental policies
- individual insurance for special needs
- Study: There are many different ways to study and prepare for each state health and life insurance exam. preparation courses are available, as well as a series of study books that come complete with practice questions. Whichever method you choose, be sure to read and consume as much information as possible.
- Practice Questions: With new knowledge, it’s time to see how you apply it to the exam questions. Practice question banks will be available through prep courses as well as with study guides for each state exam. Taking practice questions based on each test topic can help you see how well you’re retaining the information.
- Assess: Are there specific areas of the life and health insurance exam topics where you excel? Are there areas where you are still weak? Evaluate the results of your study and practice questions to determine where you need to sharpen your skills and knowledge.
- Repeat: Now that you know your weak areas, focus on them with more study and practice questions until you see improvement.
content of life and health insurance exams
It is important to understand the content of the life and health insurance exams before taking the actual exam. The more you know about the exam content, the easier it will be to prepare for and pass the exam. The life and health insurance exams will test your knowledge on a variety of topics, including a general understanding of both types of insurance. In addition, specific topics to expect on life and health insurance exams include:
Each state will present its unique state exam outline. print it out and use it as your study guide so you can keep track of the content you’ll need to review.
how to pass your insurance exams on the first try
Now that you understand what it takes to obtain and maintain a life and health insurance license, how do you approach the exam? The goal of anyone taking a life and health insurance licensing exam is to pass it on the first try, but that doesn’t always happen. people who don’t pass on the first try probably didn’t prepare well and didn’t get a full understanding of what lay ahead of them on the exam. Let’s look at the format of the exam, as well as some tips and tricks on how to prepare successfully.
life and health insurance exam format
The great thing about each state’s life and health insurance exam is that you can choose a date and time. scheduling options will depend on the state insurance department.
All tests are taken on a computer, but you do not need specialized computer skills to pass the exam. once you settle into the test, you can expect 100-150 multiple choice questions. again, the questions will depend on your particular state. tests that combine life and health insurance tend to last a little longer.
score and pass rate
To pass each state life and health insurance exam, you must score 70% or higher. a score of 70 is as good as a perfect score of 100 when it comes to getting a license. however, if you score less than 70, you will need to retake the exam.
The pass rate will vary depending on the exam you take and the state you are in. The National Association of Insurance Commissioners (NAIC) publishes data on passing rates by exam and by state. Generally speaking, the pass rate for life and health insurance exams ranges from 60% to 70%.
the study recipe for success
The best approach is to be formulated in your approach to study for the life and health insurance exam. Most agents won’t be successful if they just read a book, just work on questions, or try to include all the information at the end. instead, be much more deliberate in your approach.
The best approach to passing the life and health insurance licensing exam on the first try is to study, practice questions, test, and repeat.
decide on a target date and complete a practice test
Decide on a deadline for your exam. The flexibility that states offer allows you to set a date and prepare in the way that works best for you. It will take most people 35-40 hours to fully prepare for their exam. the amount of time you need to prepare will depend on how many hours each day you can commit to. it is possible to schedule the exam two weeks in advance and prepare if you can compromise study hours. however, if you have a full-time job and other commitments, you may need more time.
When deciding on your target date, strive to take one or two practice tests before the test date. try to simulate the test environment as much as possible, putting yourself in the mindset of what test day will be like. taking practice tests will also allow you to gain confidence and address any lingering problem areas.
how often do you need to renew your license?
When you get a life and health insurance license, it doesn’t mean you’re certified to sell insurance forever. You will need to stay current with licensing and renewal requirements. When you get your initial license, it will have an expiration date. Generally speaking, an insurance license must be renewed every three years. To continue as an agent without interruption, you must ensure that you renew your license before it expires.
what are the steps to renew your license?
The process for renewing your life and health insurance license is simple, as long as you renew before it expires. once it expires, the process can become more complicated.
In many cases, states will require you to complete continuing education hours before you can renew your life and health insurance license. You can usually meet this continuing education requirement through traditional training or professional development courses that will keep you current on changes in the industry.
When you have your documentation ready, you must submit it with your renewal application. each state will have applications that you can complete on paper or online. When you apply, you will also need to include your license renewal fee.
get your license today
It takes a lot of work and discipline to pass the state life and health insurance exams and launch your career as an insurance agent. But anyone can do it with the right preparation and focus, along with a little practice. Before you embark on your life and health insurance journey, make sure you know what’s required so you can set yourself up for success.