How to Get Your Life Insurance License and Start Selling
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Quick Answer:
- Most states require 20-40 hours of pre-licensing education before you can take the life insurance licensing exam
- The exam typically has 50-150 multiple-choice questions with a 70% passing score required in most states
- The entire licensing process takes 2-6 weeks, depending on your study pace and state processing times
Selling life insurance offers one of the most financially rewarding paths in the insurance industry. Life insurance agents help families protect their futures while earning substantial commissions and building long-term residual income. Whether you are exploring how to become an insurance agentPre License How To Become An Insurance Agent With No Experience Resources or adding a new line of authority to your existing license, this guide walks you through everything you need to know about getting your life insurance license.
What Is a Life Insurance License?
A life insurance license is a state-issued credential that authorizes you to sell life insurance products to consumers. This license falls under the Life and Health (L&H) line of authority, though some states offer a life-only license separate from health insurance.
With a life insurance license, you can sell term life insurance policies, whole life and universal life insurance, variable life insurance (requires additional FINRA licensing), fixed and variable annuities, and accidental death and dismemberment coverage. The specific products you can sell depend on your license type and the carriers with whom you become appointed.
Life Insurance License Requirements by State
While each state sets its own licensing requirements, most follow a similar framework. You must be at least 18 years old, complete state-approved pre-licensing education, pass the state licensing exam, submit to a background check and fingerprinting, and apply for your license through your state's insurance department or NIPRLicensing Center Nipr.com.
| Requirement | Typical Range | Notes |
|---|---|---|
| Minimum Age | 18 years | Standard across all states |
| Pre-Licensing Education | 20-60 hours | Some states exempt certain designations |
| Exam Passing Score | 70% | Some states require 65% |
| Background Check | Required | Fingerprinting in most states |
Pre-licensing education hours vary significantly. States like New York require 40 hours for a combined Life and Health license while others require only 20 hours for life-only coverage. A few states including Texas do not mandate pre-licensing education but strongly recommend it given exam difficulty.
Life Insurance License vs Life & Health License
Most states bundle life and health insurance into a single license, which means you complete one course and one exam to sell both product types. However, some states like California, Florida, and New York offer separate licenses for each line.
| License Type | Products You Can Sell | Career Advantage |
|---|---|---|
| Life Only | Term, whole, universal life, annuities | Focused specialization |
| Health Only | Medical, disability, long-term care | Growing Medicare market |
| Life & Health Combined | All of the above | Maximum product flexibility |
Getting both licenses provides the most career flexibility. You can serve clients comprehensively and capture more revenue per household. For a detailed comparison of different license paths, see our guide on Property and Casualty vs Life and Health licensesPre License Property And Casualty Vs Life And Health Vs All Lines Resources.
How Long Does It Take to Get a Life Insurance License?
Most candidates complete the entire licensing process in two to six weeks. Your timeline depends on how quickly you complete education, when you can schedule your exam, and your state's application processing speed.
Pre-licensing education typically takes one to three weeks if studying part-time or as little as one week studying full-time. Exam scheduling usually requires one to two weeks advance booking. Application processing ranges from immediate in some states to two to four weeks in others. The fastest path involves completing education quickly, scheduling your exam immediately, and having all application materials ready to submit the same day you pass.
How Much Does a Life Insurance License Cost?
Budget between $200 and $500 for the complete licensing process. Costs vary by state and the education provider you choose.
| Expense | Typical Cost Range |
|---|---|
| Pre-Licensing Course | $100-$300 |
| State Exam Fee | $40-$150 |
| License Application Fee | $50-$200 |
| Background Check/Fingerprinting | $30-$100 |
Many employers and agencies will reimburse these costs or pay them upfront as part of their agent recruitment programs. If you are joining a captive agency or independent marketing organization, ask about licensing cost assistance during your interview process.
What Is on the Life Insurance Licensing Exam?
The life insurance exam tests your knowledge of insurance concepts, policy types, regulations, and state-specific laws. Most exams contain 50 to 150 multiple-choice questions and allow two to three hours for completion.
Exam topics typically include types of life insurance policies and their features, policy provisions and contract law, annuities and retirement products, taxation of life insurance, state regulations and licensing requirements, and ethical sales practices. According to the National Association of Insurance CommissionersContent.naic.org, first-time pass rates for life insurance exams range from 42% to 72% depending on the state, with most falling between 55% and 65%.
The candidates who pass on their first attempt typically spend 35 to 40 hours studying beyond their pre-licensing course. For proven study strategies, check out our guide on how to study for the insurance examPre License How To Study Insurance Licensing Exam Resources.
Life Insurance Agent Salary & Career Outlook
Life insurance offers exceptional earning potential compared to many careers that do not require a college degree. Your income depends largely on your sales ability, client base, and whether you work captive or independent.
First-year agents typically earn $40,000 to $60,000 while building their book of business. Experienced agents with established client bases often earn $80,000 to $150,000 or more annually. Top performers can exceed $200,000 through a combination of new policy commissions and renewal residuals.
One major advantage of selling life insurance is residual income. Policies that renew year after year continue paying you commissions without additional work, creating passive income streams that compound over time. Learn more about earning potential in our article on best-paying insurance careersPre License What Are The Best Paying Jobs In Insurance Resources.
Steps to Get Your Life Insurance License
Follow this proven path to get licensed efficiently.
Step one is meeting basic eligibility requirements. Confirm you are at least 18 years old with a clean background that will not disqualify you from licensing. Most states disqualify applicants with recent felonies or financial crimes.
Step two involves completing pre-licensing education through a state-approved provider. Choose a course that includes comprehensive exam prep and practice questions. Online courses offer flexibility to study on your schedule.
Step three is passing the state licensing exam. Schedule your exam through your state's designated testing provider, typically Pearson VUE or PSI Services. Arrive early with valid government-issued identification.
Step four requires submitting your license application. Apply through NIPR or your state's insurance department portal immediately after passing your exam. Include all required documentation and fees.
Step five is getting appointed by insurance carriers. Your license authorizes you to sell, but you need carrier appointments to actually write policies. Your employer or agency will typically handle appointment paperwork.
Start Your Life Insurance Career
A life insurance license opens doors to meaningful work helping families secure their financial futures. The combination of strong earning potential, flexible schedules, and the satisfaction of protecting people makes this career path worth the investment in licensing.
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