What you need to do to start selling life insurance

Becoming a life insurance agent requires a state license, which means passing an exam and meeting your state's background and training requirements. Most states require you to complete pre-licensing coursework (usually 20 to 40 hours), pass a written test, and submit an application through your state's insurance department. The timeline from start to licensed agent is typically 4 to 12 weeks, depending on how quickly you complete the coursework and schedule your exam.

You do not need a college degree, but you do need to be at least 18 years old and a U.S. citizen or permanent resident in most states. After you pass the state exam, you will work for an insurance agency or brokerage firm — you cannot sell policies on your own. Many agents start part-time while keeping another job, then transition to full-time once they build a client base.

Key Takeaways

  • Your state's insurance department sets the licensing requirements, which include pre-licensing coursework, a passing exam score, and a background check.
  • Pre-licensing courses are offered online and in-person by approved providers and typically cost $200 to $500.
  • You must work under an insurance agency or brokerage — independent operation is not permitted without additional licensing.
  • Income is commission-based, meaning you earn a percentage of each policy premium you sell, with no may provide salary at most firms.

Pre-licensing coursework and what it covers

Before you can sit for the state exam, you must complete pre-licensing education from a provider your state has approved. These courses cover life insurance products, policy types, underwriting basics, ethics, and state insurance laws. The number of required hours varies by state — some require 20 hours, others 40 or more — so check your state insurance department's website for the exact number.

Most providers offer online courses that you can complete at your own pace, usually within 30 to 60 days. Some also offer in-person classroom options. Costs range from $200 to $500 depending on the provider and your state. Once you finish the course, the provider issues a completion certificate, which you will need to submit with your exam application.

Passing the state licensing exam

After completing your coursework, you schedule the exam through your state's testing vendor (often Pearson VUE or PSI). The exam typically has 100 to 150 multiple-choice questions covering life insurance law, policy features, ethics, and sales practices. You usually have 2 to 3 hours to complete it, and you need to score around 70 to 75 percent to pass — the exact passing score varies by state.

You can usually schedule the exam within 1 to 2 weeks of finishing your coursework. If you fail, most states allow you to retake it after a waiting period (often 7 to 30 days), and you may need to pay the exam fee again. Many people pass on the first attempt if they study the course material and take practice exams.

Background check and application requirements

Your state will conduct a background check as part of the licensing process. This typically includes a criminal history review and a check of your financial record. Most states will not license you if you have felony convictions or certain financial violations, though misdemeanors and older offenses are often reviewed case-by-case.

You will submit your application directly to your state's insurance department, along with your exam passing score, coursework completion certificate, and any required fees (usually $100 to $300). The department reviews your application and background check, which takes 1 to 4 weeks. Once approved, you receive your license, which is typically valid for 2 to 3 years before renewal.

Finding an agency or brokerage to work for

You cannot sell life insurance without being sponsored by a licensed insurance agency or brokerage. Most agents find a firm before or immediately after passing the exam. You can search for agencies in your area through your state insurance department's website, or by networking with people already in the industry.

Some larger firms (like those affiliated with major insurance companies) have structured training programs and higher commission splits for new agents. Smaller independent agencies may offer more flexibility but less formal support. When evaluating a firm, ask about commission rates, whether they provide leads or expect you to build your own client base, and what training or mentoring they offer. Many firms will sponsor your licensing if you commit to working for them.

How agents earn money and what to expect early on

Life insurance agents work on commission, meaning you earn a percentage of each premium your clients pay. Commission rates vary widely — typically 40 to 90 percent of the first-year premium for new policies, then 5 to 10 percent of renewal premiums in subsequent years. Your firm keeps the rest. This structure means your income depends entirely on how many policies you sell and how much premium those policies generate.

Most new agents do not earn significant income in their first 6 to 12 months because building a client base takes time. Some firms offer a draw (a small may provide payment) during the ramp-up period, but this is not standard. Many new agents work part-time initially or maintain another income source while they establish themselves. Once you have a book of business (a stable group of clients paying renewal premiums), your income becomes more predictable.

Continuing education and license renewal

After you are licensed, you must complete continuing education credits to renew your license every 2 to 3 years, depending on your state. Most states require 15 to 30 hours of approved continuing education per renewal period. These courses cover updates to insurance law, ethics, and product knowledge. You can take them online or in-person, and many are free or low-cost through your agency or industry organizations.

Failing to complete continuing education before your license expires will result in an inactive license, and you cannot sell policies until you renew. Renewal fees are typically $100 to $300. Some agents also pursue additional certifications (like Chartered Life Underwriter, or CLU) to build credibility and specialize in complex cases, though these are optional.

Frequently Asked Questions

Do I need a college degree to become a life insurance agent?

No. Most states require only that you be at least 18, pass the pre-licensing course and exam, and pass a background check. A high school diploma or GED is sufficient for licensing in most states, though some employers may prefer candidates with college experience.

How long does it take to get licensed?

From start to finish, typically 4 to 12 weeks. This includes time to complete the pre-licensing course (2 to 6 weeks), schedule and pass the exam (1 to 2 weeks), and wait for your state to process your application and background check (1 to 4 weeks). You can speed this up by completing coursework quickly and scheduling your exam promptly.

Can I work as an independent agent without an agency?

No. You must be sponsored by a licensed insurance agency or brokerage to sell policies. You cannot operate independently as a life insurance agent. However, you can work for multiple agencies if you hold separate licenses in each state where you sell.

What happens if I fail the licensing exam?

You can retake it after a waiting period, usually 7 to 30 days depending on your state. You will likely need to pay the exam fee again. Most states allow unlimited retakes, though some cap the number per year. Studying the course material more thoroughly before your next attempt improves your chances of passing.

How much money can I make as a life insurance agent?

Income varies widely based on how many policies you sell and the premiums they generate. New agents often earn little in their first year while building clients. Experienced agents with established books of business can earn $50,000 to $150,000 or more annually, though this depends on your market, firm, and sales ability. Commission structures differ by firm, so ask about rates when you interview agencies.