What Can You Do With a Life and Health Insurance License?
Take control of your insurance career. Get the salary guide and start leveling up!
Quick Answer
- A life and health insurance license allows you to sell life insurance, health insurance, disability insurance, annuities, and long-term care insurance
- You can work as a captive agent for one company or as an independent broker representing multiple carriers
- Average income ranges from $60,000 to over $100,000 annually, with unlimited earning potential through commissions
A life and healthPre License Why Become A Life Health Insurance Agent Resources insurance license opens the door to one of the most flexible and financially rewarding careers in insurance. This single license qualifies you to sell multiple product types that help people protect their families, income, and future — and you can earn substantial income while doing it.
If you're considering getting your life and health insurance license, you're probably wondering: what exactly can I sell? What kind of work will I actually be doing? And is this career path worth pursuing?
This guide breaks down everything you can do with a life and health insurance license, the products you can sell, the income you can earn, and how to get started.
What Products Can You Sell With a Life and Health Insurance License?
According to the Bureau of Labor StatisticsSales Insurance Sales Agents.htm Ooh, life and health insurance agents can sell a variety of products that protect clients against financial loss related to death, illness, disability, and healthcare costs. Your license authorizes you to sell these core products:
Life Insurance
Life insurance pays beneficiaries when a policyholder dies. You can sell several types of life insurance:
- Term life insurance: Affordable coverage for a specific period (like 10, 20, or 30 years)
- Whole life insurance: Permanent coverage with a cash value component
- Universal life insurance: Flexible premium payments and death benefits
- Variable life insurance: Investment-linked policies with growth potential
Life insurance products typically offer some of the highest commissions in the insurance industry. First-year commissions often range from 60% to 100% of the annual premium, with renewal commissions of 2% to 5% in subsequent years.
Health Insurance
Health insurance covers medical expenses ranging from routine checkups to hospital stays and catastrophic healthcare needs. As a licensed agent, you can sell:
- Individual and family plans: Major medical coverage purchased through private carriers or health insurance marketplaces
- Medicare Advantage plans: Private insurance alternatives to Original Medicare for people 65 and older
- Medicare Supplement (Medigap) plans: Policies that fill coverage gaps in Original Medicare
- Dental and vision insurance: Supplemental coverage for oral and eye care
- Critical illness insurance: Lump-sum payments when diagnosed with specific serious illnesses
Disability Insurance
Disability insurance provides income replacement if clients become unable to work due to illness or injury. You can sell:
- Short-term disability: Coverage for temporary disabilities lasting weeks to months
- Long-term disability: Protection for extended disabilities that may last years or until retirement
- Individual disability policies: Customizable coverage for self-employed professionals
- Group disability through employers: Workplace-sponsored income protection
Annuities
Annuities are financial products that provide guaranteed income streams, typically for retirement. With a life insurance license, you can sell:
- Fixed annuities: Guaranteed interest rates and predictable payments
- Variable annuities: Investment-based annuities with growth potential (requires additional securities licensing through FINRA)
- Immediate annuities: Convert a lump sum into immediate income
- Deferred annuities: Accumulate value over time before converting to income
Long-Term Care Insurance
Long-term care insurance covers the costs of assisted living, nursing homes, and home healthcare that Medicare doesn't typically cover. This product is increasingly important as the population ages, creating strong demand for agents who understand these policies.
What Does a Life and Health Insurance Agent Actually Do?
Beyond just selling policies, life and health insurance agents perform a variety of important roles:
Assess Client Needs
You'll regularly evaluate clients' financial situations, risks, and insurance requirements to recommend suitable policies. For example, a primary earner with a family might need substantial life insurance protection, while a young professional might prioritize disability insurance to protect their income.
Explain Complex Products
Insurance can be confusing. Your job is to break down policy details — coverage limits, premiums, exclusions, and benefits — in ways clients can understand. You become a trusted advisor helping people make informed decisions about protecting their families and futures.
Build and Maintain Client Relationships
Successful agents develop long-term relationships with clients. Life changes like marriage, children, home purchases, or career shifts create new insurance needs. Regular policy reviews ensure clients remain properly protected and create opportunities for additional sales.
Generate New Business
You'll spend time networking, requesting referrals, marketing yourself online, and reaching out to potential clients. Building a strong client base takes consistent effort, especially in your first few years.
Stay Current With Industry Changes
Insurance laws, products, and regulations constantly evolve. Agents must complete continuing educationContinuing Education Resources courses to maintain their licenses and provide accurate recommendations to clients.
How Much Can You Earn With a Life and Health Insurance License?
Income potential is one of the most attractive aspects of this career. According to the Bureau of Labor Statistics2023 May Oes413021.htm Oes, insurance sales agents earn a median annual wage of $60,370 nationwide, with top earners making over $135,660.
Your actual income depends on several factors:
Commission Structure
Most life and health insurance agents work primarily on commission. Life insurance products typically offer the highest first-year commissions (60-100% of annual premium), while health insurance commissions vary by product type but generally range from 5-20% of annual premium.
Experience Level
New agents typically earn less while building their client base. First-year income might range from $35,000 to $55,000. However, as you develop a book of business with renewal commissions and referrals, income grows substantiallyPre License What Could Your Insurance License Be Worth Resources.
Geographic Location
Location significantly impacts earnings. Agents in high-cost-of-living areas typically earn more. Major metropolitan areas often provide larger client pools and higher average policy values.
Captive vs. Independent
Captive agents work for one insurance company and may receive a base salary plus commissions. Independent agents represent multiple carriers, typically work on pure commission, but have unlimited earning potential and more flexibility.
Ready to take the first step?
Your future in the insurance industry starts now.
Career Paths With a Life and Health License
A life and health insurance license opens multiple career trajectories:
Insurance Sales Agent
Start your career selling policies directly to individuals and families. This is the most common entry point and provides the foundation for all other career paths in the industry.
Independent Insurance Broker
Work for yourself, representing multiple insurance companies. Independent brokers have greater flexibility and earning potential but handle their own marketing, client acquisition, and business expenses.
Agency Owner
Build and manage your own insurance agency. Agency owners recruit and train other agents, earning override commissions on their team's sales in addition to personal production.
Corporate Positions
Move into corporate roles like underwriting, claims management, or sales management. Many insurance companies prefer to hire individuals with agent experience and active licenses for these positions.
Financial Planning
Expand into comprehensive financial planning by obtaining additional certifications. Many financial planners start with insurance licenses before adding investment and retirement planning services.
Benefits of Getting Your Life and Health Insurance License
Low Barrier to Entry
Unlike many careers, you don't need a college degree. Most states require only 20 to 40 hours of pre-licensing education and passing a state exam. You can complete your training and licensingPre License How To Become An Insurance Agent With No Experience Resources in just a few weeks.
Flexible Schedule
Many agents enjoy flexible work arrangements. You can work from home, set your own hours, and meet clients on evenings or weekends if that works better for your lifestyle.
Unlimited Income Potential
Because most compensation comes from commissions, your income directly correlates with your effort and skills. There's no cap on how much you can earn.
Meaningful Work
You're not just selling policies — you're helping families protect their financial security. When a client files a claim, your work directly impacts their ability to recover and move forward.
Recession-Resistant Industry
People always need insurance. The Bureau of Labor StatisticsSales Insurance Sales Agents.htm Ooh projects 4% employment growth for insurance agents through 2034, with about 47,000 openings projected annually.
Ready to take your insurance career to the next level?
If you’re eager to learn how to not only get licensed but also thrive in your insurance career, check out our Tips for Becoming a Successful Insurance Agent.
How to Get Your Life and Health Insurance License
Getting licensed is straightforward:
Step 1: Complete Pre-Licensing Education
Most states require 20 to 40 hours of approved pre-licensing education covering life insurance, health insurance, and state-specific regulations. Online courses make it easy to study at your own pace.
Step 2: Pass the State Licensing Exam
After completing your education, you'll take a state-administered exam testing your knowledge of insurance products, regulations, and ethics. The exam typically consists of 100-150 questions and requires a 70% passing score.
Step 3: Apply for Your License
Submit your license application to your state's insurance department along with proof of exam passage, fingerprints for a background check, and applicable fees. Processing typically takes a few weeks.
Step 4: Get Appointed by Insurance Carriers
To sell policies, you need to be appointed by one or more insurance companies. Captive agents receive appointments through their employing company, while independent agents can obtain appointments with multiple carriers.
Is a Life and Health Insurance License Right for You?
This career path works best for people who:
- Enjoy helping others: You'll work closely with clients during important financial decisions
- Are self-motivated: Success requires consistent effort in prospecting and client management
- Have strong communication skills: Explaining complex products clearly is essential
- Are comfortable with commission-based income: Earnings can fluctuate, especially early in your career
- Want flexibility and independence: You control your schedule and business development strategies
Start Your Life and Health Insurance Career Today
A life and health insurance license gives you the credentials to build a flexible, financially rewarding career helping people protect what matters most. Whether you want to work for an established agency or build your own independent practice, this license provides the foundation for success.
The path forward is clear: complete your pre-licensing education, pass your state exam, and start building your career. With the right training and preparation, you can be licensed and working with clients within weeks.