Application Fee – Each state has a slightly different fee charged for insurance license applications.

Education Course – Not every state requires you to take an education course and present a certificate before taking the exam. However, we will advise you to take this course to increase your chances of passing the exam. You can see the states that require a pre-education course here.

Examination Fee – An examination fee is another cost you will incur in pursuit of your life and health insurance license. 

Background Check & Fingerprint – There’s a fee for running a background check and taking your fingerprint. 

Health insurance is a method of paying for your healthcare. After selecting a health insurance provider, you will pay premiums at an agreed rate and frequency- monthly, quarterly, bi-annually, or even annually. 

In exchange for these premium payments, the insurer will cover a portion and sometimes all of your medical expenses. In 2020, the average cost for health insurance is $456 for an individual and $1,152 for a family a month. 

Life insurance is a contract between you and the insurance provider to pay a lump sum amount to your beneficiaries on the occurrence of an event, in this context- your death. 

Some forms of life insurance may target other parties other than your beneficiaries, such as mortgage lenders or creditors. Whatever the case, the concept is the same, to pay someone a certain amount when you pass. By the way, the average cost of life insurance is $27 per month, which is $324 per year. 

The pass mark for life insurance is 70% in all states, and the pass rate is 62.9%.

The pass mark for health insurance is the same score; 70%, and the pass rate is slightly lower than that of life insurance – 60.4%. 

You can find out your exam status at the center where you took the test, I.e., whether you passed or failed. Usually, a numeric score is shown if you fail the exam to help you identify areas you need to work on before retaking the exam.

However, if you fail the exam, you cannot register immediately.

You have to wait about 24 hours before registering for the exam again. Usually, the exam is taken three times a year. Should you fail the exam all three times, you may be required to retake the pre-licensing education course before registering for the exam the following year.

The topics you will most likely be tested on for the life insurance licensing exam include:

1. General knowledge of life insurance

2. Life insurance policies 

3. Tax issues relating to life insurance

4. Policy riders and options for life insurance coverage

Health Insurance licensing exams usually test the following topics:

1. Health insurance tax issues 

2. Health Maintenance Organizations (HMOs)

3. Disability income

4. Medical plans

5. Special needs individual insurance

6. Dental insurance

Becoming a licensed insurance agent is a great feat that requires hard work and dedication. However, the general process is the same, whether you decide to dabble into life insurance, health insurance, or any other sector. 

First, you have to decide on the type of insurance you want to sell and submit an application according to the rules of the state where you reside. Then, study for licensing examination, pass and approve your application. Viola, you’re a licensed insurance agent. 

The costs you incur on this process vary with the type of insurance you want to sell and your location. 

Sources

Frequently Asked Questions About the Life Insurance License?

Becoming a Life Insurance Agent?

How to Become a Health Insurance Agent?

How to Become a Licensed Insurance Agent?

How Hard is the Insurance Licensing Exam?

8 Types of Life Insurance

Insurance Agent License Requirements by State

The post What Are The Costs To Get Licensed For Life And Health Insurance By State? appeared first on Insurance BlogX.

Failure to complete your licensing application process within six months may require you to renew and pay an additional fee. 

We advise you to schedule your licensing exam at most a week from when you finish your pre-license education course. 

This ensures the information is still fresh in your mind and boosts your chances of clearing the exam in one attempt.

How To Get An Insurance License

The first step anyone should take is to research the state requirements for becoming a licensed insurance agent. Some states may require you to take specific courses asides from the pre-licensing exam; this is why it is important to know what is required by your state.

Finish Your Pre-License Education Course

 To register for the licensing exam, you have to complete a pre-license education course; some states may even require you to present a course completion certificate on the day of the examination. On the other hand, certain states may not require a course.

Regardless of whether your state mandates you to take this test or not, it is always a good idea to prepare for your licensing exam. A pre-licensing education course is a sure-fire way to prep for your exam and pass.

Pre-license education courses usually involve:

1. Practice tests and assessments

2. Study calendars 

3. Live sessions with tutors

4. Study guides

5. And even access to teachers for questions

These courses usually take 20 – 40 hours to be completed, and the material covered varies on what state you are in and what insurance you plan to sell. 

Complete Your License Application

It is important to complete and submit your license application. These applications are state-specific, and most states use the National Insurance Producer Registry (NIPR) to submit and process applications. 

Information required for your application includes basic information such as your legal name, social security number, criminal history, social security number, address, etc. Therefore, you must provide the correct information when submitting your application.

At this point, you should be aware of what type of insurance you want to register for so that your pre-license education requirements are evaluated correctly. 

The types of insurance you can register for include:

1. Health Insurance

2. Life Insurance

3. Property Insurance

4. Casualty Insurance

5. Personal Lines Insurance

Complete A Background Check And Get Your Fingerprint Taken

As an applicant, it is your responsibility to have your fingerprint taken and submitted. Your state will direct you on how to go about this step. Usually, fingerprinting is done by a third-party agency or local law enforcement.

Fingerprinting costs around $35 – $75. Another key part of getting your license is a background check conducted by your state’s agency.

Take The Licensing Exam

Here is the most critical part of getting your license. It is the most difficult for many, and it requires the most preparation. 

Various states display a content outline for the test on their website. However, a pre-license education course is the best way to prepare for the exam. 

You can expect your exam to test you on:

1. State-specific laws and regulations

2. Duties and responsibilities of an insurance agent

3. Annuities and retirement plans

4. Traditional policies

5. Flexible policies

6. Contract law

7. Underwriting and application

Application Review And License 

This is the final step in the process of getting our insurance license. After submitting all necessary documents and passing your licensing exam, your state insurance authority will review your application. 

This final step can range from a few days to several weeks. Any questions that need answers will be communicated with the insurance agency. 

If your application is approved, you will be notified, and a copy of your insurance license will be sent to you. 

Always have your license information handy because anytime you apply for a position in the insurance industry, you will be required to provide your license number and National Produce Number (PCN). 

Requirements For Getting An Insurance License

The major requirement for selling insurance is to complete the application process and secure your license. In addition, you may be required to take a state-approved continuing education annually. 

Frequently Asked Questions

What Exams Should I Take To Get Licensed?

Selling insurance requires you to take the state licensing exam in the line of insurance you want to sell. For instance, if you want to sell health insurance in Ohio, you must take and pass Ohio’s licensing exam.

Some states allow you to combine multiple lines of insurance marketed together, such as health and life insurance.

How Hard Is Passing Insurance Licensing Exams?

The licensing exam is the most difficult step in securing your insurance license. While many find it difficult to navigate passing the exam, it can be easier if you take a test prep course. The licensing exam covers numerous sections, and being ill-prepared can make it easy to fail.

The average pass rate for all licensing exams averages about 60%. According to the National Association of Insurance Commissioners (NAIC), the individual pass rates for each section is:

What Are The Costs Involved In Becoming An Insurance Agent?

This cost varies depending on your state, but you can expect to spend around $300. The fees you will pay include:

1. Pre-licensing education course

2. Licensing exam

3. Registration fee

4. Application processing fee

5. Fingerprinting

The application fee and registration fee are hardly refundable. A basic pre-license course will give you access to study modules, practice assessments, and a license exam manual. A more in-depth course will include videos or even a live classroom. 

Conclusion

Becoming a licensed insurance sales agent ideally takes several weeks. Follow the steps we explained above to navigate how to secure your insurance license.

Sources

Insurance Licensing

The post How Long Does It Take To Get An Insurance Sales License? appeared first on Insurance BlogX.