What you need to do to become a life insurance agent

Becoming a life insurance agent requires you to pass a licensing exam in your state, which usually takes two to four weeks of study. You'll need a high school diploma or equivalent, then complete pre-licensing coursework (either online or in-person), pass the state exam, and submit fingerprints for a background check. Most states also require you to work under a licensed insurance agency or brokerage — you cannot sell life insurance independently as a solo operator.

The entire process from starting coursework to your first day selling typically takes one to three months, depending on how quickly you study and whether your state has a backlog in processing licenses. Some people move faster; others take longer. The cost ranges widely by state and provider, but expect to spend between $200 and $1,000 on coursework, exam fees, and licensing.

Key Takeaways

  • You must pass your state's life insurance licensing exam, which requires completing pre-licensing education first.
  • Most states require you to be sponsored by a licensed insurance agency or brokerage before you can take the exam.
  • Background checks and fingerprinting are standard; felonies and certain financial crimes can disqualify you.
  • Your license is valid only in the state that issued it, so selling in multiple states means multiple licenses.
  • Continuing education is required every one to three years depending on your state to keep your license active.

Meet the basic requirements before you start

Every state requires you to be at least 18 years old and have a high school diploma or GED. You'll need a valid Social Security number and a clean background — most states deny licenses to people with felony convictions, especially financial crimes like fraud or embezzlement. Some states also look at misdemeanors, so check your state's specific rules if you have a criminal history.

You must also be a resident of the state where you're getting licensed, or at least have a physical address there. Some states allow non-residents to get licensed if they're sponsored by an in-state agency, but this varies. Contact your state's Department of Insurance to confirm the residency rule where you plan to work.

Get sponsored by an insurance agency or brokerage

Before you can take the licensing exam, you need to be affiliated with a licensed insurance agency or brokerage. This means you'll need to find a job or contract with an agency first — you cannot study for and pass the exam on your own and then look for work. The agency sponsors your application and vouches for you to the state.

Some agencies hire people before they're licensed and pay for their pre-licensing coursework as part of onboarding. Others require you to complete the course on your own time and dime before they'll bring you on. Either way, the agency will provide you with the sponsorship form you need to submit with your license application. If you don't have an agency lined up, job boards like Indeed and LinkedIn often list "life insurance agent" positions; many explicitly say they'll sponsor new agents through licensing.

Complete pre-licensing education in your state

Your state's Department of Insurance approves specific pre-licensing courses. These are offered online and in-person by companies like Kaplan, The Institutes, and state-specific providers. The course covers insurance law, policy types, underwriting basics, and ethics. Most take 20 to 40 hours to complete, depending on your state's requirement.

You can usually finish an online course in a few days if you work full-time on it, or spread it over a few weeks. The course ends with a final exam that you must pass before you're allowed to sit for the state licensing exam. Keep your completion certificate — you'll need to submit it with your license application.

Pass your state's life insurance licensing exam

After you complete pre-licensing education, you schedule the state exam through your state's testing vendor (often Pearson VUE or PSI). The exam is usually 100 to 150 multiple-choice questions covering life insurance products, state insurance law, and professional conduct. You typically have two to three hours to complete it.

Most states require a score of 70 to 75 percent to pass. If you fail, you can usually retake it after a waiting period (often 30 days). Study materials from your pre-licensing course are usually enough to pass; many people also buy practice exams online for $20 to $50 to drill weak areas. The exam fee itself is typically $50 to $150, paid directly to the testing vendor.

Submit your license application and background check

Once you pass the exam, you submit your formal license application to your state's Department of Insurance. You'll need your exam passing score, your pre-licensing course completion certificate, your sponsorship form from the agency, and proof of identity. Most states also require fingerprints for an FBI background check, which you'll submit through a third-party vendor — the agency often handles this step for you.

Processing times vary by state, from one week to six weeks. Some states are faster; others have backlogs. You can usually check the status of your application online through your state's Department of Insurance portal. Once approved, you'll receive your license certificate, which you keep on file at your agency.

Understand the differences between agent types and compensation

Life insurance agents work under different structures. A captive agent works for one insurance company and sells only that company's products — they're usually employees with salary, commission, or both. An independent agent works with multiple insurance companies and can sell any of their products; they're usually contractors paid entirely on commission. A broker is licensed to sell insurance from multiple carriers and often employs other agents.

Most new agents start as independent contractors with a brokerage or as captive agents with a large company. Compensation is almost always commission-based for new agents, meaning you earn a percentage of each policy premium you sell. First-year commissions on life insurance typically range from 40 to 90 percent of the first year's premium, then drop to 5 to 10 percent in renewal years. Your agency may also offer bonuses or draws (advances against future commissions) to help you survive the ramp-up period when you're building a client base.

Maintain your license with continuing education

Your license is not permanent. Most states require you to complete continuing education (CE) credits every one to three years to renew. The number of hours varies by state — typically 12 to 24 hours per renewal period. You take these courses online or in-person through approved providers, and they cover updates to insurance law, ethics, and product changes.

Your agency usually tracks renewal deadlines and reminds you when CE is due. Failing to renew on time results in license suspension, which means you cannot legally sell insurance until you renew. Renewal fees also vary by state, typically $100 to $300 per renewal cycle.

Frequently Asked Questions

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

No. A high school diploma or GED is the only education requirement. Many agents have college degrees, but it's not necessary to pass licensing or find work. Some agencies prefer college-educated candidates, but most hire based on your ability to pass the exam and your sales potential.

Can I sell life insurance in multiple states?

Yes, but you need a separate license in each state. You'll need to complete that state's pre-licensing course and pass its exam. Some states have reciprocal agreements that let you transfer your license more easily, but most require you to take the exam again. Check with each state's Department of Insurance for their specific rules.

How long does it take to make money as a life insurance agent?

Most new agents take three to six months to close their first sale, depending on their sales skills and network. Your first year income is typically low because commissions are small until you build a client base. Many agencies offer a draw or salary to help you survive this period, but not all do. Plan for little to no income in your first few months.

What happens if I have a criminal record?

Felonies almost always disqualify you, especially financial crimes. Misdemeanors may or may not, depending on the crime and your state. Contact your state's Department of Insurance directly with details about your record — they can tell you whether you're disqualified before you spend money on coursework.

Can I work part-time as a life insurance agent?

Yes. Many agents work part-time, especially early in their career while building a client base. Your agency sets the expectations — some require full-time commitment, others don't. Part-time agents typically earn less because they have fewer hours to sell, but the flexibility appeals to people with other jobs or responsibilities.