What you need to do to become a licensed life insurance agent
Getting a life insurance license requires passing a state exam, completing pre-licensing education, and submitting an application to your state's insurance department. The process takes between two weeks and three months depending on how quickly you study and how fast your state processes paperwork. You do not need a college degree, but you do need to be at least 18 years old and a resident of the state where you want to sell.
The path is the same whether you want to work for an insurance company, a brokerage, or start your own practice. Your employer or sponsoring agency will guide you through some steps, but you are responsible for passing the exam and meeting your state's specific requirements.
Key Takeaways
- Most states require 20 to 40 hours of pre-licensing coursework before you can sit for the exam, though some states have no classroom requirement.
- The licensing exam covers life insurance products, state insurance laws, ethics, and how to calculate premiums and benefits.
- You must find a sponsoring agency or company before you can submit your license application to the state — you cannot get licensed as an independent agent first.
- Background checks are standard, and some states will deny a license if you have certain criminal convictions or financial judgments against you.
- After you pass the exam and the state approves your application, your license is usually active within one to two weeks.
Pre-licensing education requirements vary by state
Some states require classroom hours before you take the exam; others do not. Check your state's insurance department website to find the exact requirement — search "[your state] insurance department pre-licensing requirements" or call the department directly.
If your state requires pre-licensing education, you can take it online, in person, or through a combination. Most courses take 15 to 40 hours to complete and cover life insurance products, underwriting basics, policy riders, state insurance laws, and ethics. The cost is usually between $100 and $300 per course. Some employers or sponsoring agencies offer free or discounted pre-licensing courses to their agents, so ask before you pay out of pocket.
If your state has no pre-licensing requirement, you can move straight to studying for the exam. Either way, you will need to study the material to pass — the exam is not easy, and most people who fail do so because they underestimated the preparation needed.
Passing the state licensing exam
The exam is administered by Pearson VUE or PSI, depending on your state. You schedule it online, pay the exam fee (usually $50 to $150), and take it at a testing center or, in some states, online. The exam has 100 to 150 multiple-choice questions and you typically have two to three hours to complete it. You need to score between 70 and 75 percent to pass, depending on your state.
The exam covers life insurance products and how they work, state insurance laws and regulations, ethics and consumer protection rules, how to calculate premiums and death benefits, and policy underwriting and issue. Study materials are available through pre-licensing course providers, and many people also use study guides or practice exams sold separately. Plan to spend 40 to 80 hours studying if you have no insurance background.
If you fail, you can retake the exam. Most states allow you to retake it immediately or after a waiting period of a few days to a week. You pay the exam fee again each time you sit for it.
Finding a sponsoring agency before you apply
You cannot get a life insurance license without a sponsoring agency — this is a company or brokerage that agrees to supervise your work and take responsibility for your compliance with state law. The sponsoring agency does not have to be your employer (you could work as an independent contractor), but it must exist and must formally sponsor you to the state.
Most people find a sponsoring agency by applying to work for an insurance company, a brokerage, or an independent agency. During the hiring process, the employer will tell you they will sponsor your license application. Some agencies hire people before they are licensed and help them study; others hire only after you pass the exam. Ask during the interview what the timeline is and whether they cover exam fees or pre-licensing course costs.
If you already work somewhere and want to get licensed, talk to your manager or HR department about becoming a sponsored agent. They will know the process and what paperwork you need to fill out.
Submitting your application to the state
Once you have passed the exam and have a sponsoring agency in place, you submit a license application to your state's insurance department. The application includes your personal information, your exam results, your sponsoring agency's details, and usually a background check authorization form. Your sponsoring agency will often submit this on your behalf or provide you with the forms to submit yourself.
The application fee is typically $50 to $200. Some states process applications in one to two weeks; others take four to six weeks. You can check the status online through your state's insurance department portal or by calling the licensing division.
During this time, the state runs a background check. If you have felony convictions, outstanding financial judgments, or certain regulatory violations, the state may deny your application. If you have concerns about your background, contact your state's insurance department before you apply to understand whether you will be approved.
Maintaining your license after you get it
Once your license is active, you must renew it periodically — usually every one to three years, depending on your state. Renewal requires paying a fee (typically $50 to $300) and, in most states, completing continuing education hours. The number of continuing education hours required varies: some states require 12 to 24 hours per renewal period, while others require none.
Continuing education courses cover updates to insurance law, new products, ethics, and consumer protection. You can take them online or in person, and many are free or low-cost. Your sponsoring agency or employer usually tracks your continuing education and reminds you when renewal is due.
If you change sponsoring agencies or move to a different state, you will need to update your license or apply for a new one in the new state. Some states have reciprocal agreements that make this easier; others require you to take the exam again.
What disqualifies you from getting a license
Each state sets its own rules, but common disqualifying factors include felony convictions (especially fraud, theft, or financial crimes), outstanding civil judgments or unpaid debts, and previous insurance license suspensions or revocations. Some states also disqualify people with certain misdemeanor convictions or regulatory violations.
If you have a criminal record or financial judgment, contact your state's insurance department before you spend time and money on pre-licensing education and exam fees. They can tell you whether you will be approved. Some states offer waivers or exceptions for older convictions or if you can show rehabilitation, so it is worth asking.
Frequently Asked Questions
How long does it take to get licensed from start to finish?
If your state has no pre-licensing requirement and you study efficiently, you can be licensed in four to six weeks: one to two weeks for pre-licensing education (if required), one to two weeks to study and pass the exam, and two to four weeks for the state to process your application. If your state requires 40 hours of coursework or if you need to retake the exam, add another two to four weeks.
Do I need a college degree to get a life insurance license?
No. You need to be at least 18 years old and pass the state exam, but a college degree is not required. Many licensed agents have high school diplomas or some college. The exam tests knowledge of insurance, not academic credentials.
Can I get licensed in multiple states?
Yes. You can hold licenses in more than one state, but you must apply to each state separately and pay each state's application fee. Some states have reciprocal agreements that waive the exam requirement if you are already licensed in another state, but you still have to submit an application and pay the fee. Check with each state's insurance department to learn their reciprocal rules.
What happens if I fail the licensing exam?
You can retake it. Most states let you retake the exam immediately or after a short waiting period. You pay the exam fee each time. There is no limit on how many times you can retake it in most states, though a few states cap retakes at three or four per year.
Do I need to work for an insurance company, or can I be self-employed?
You can be self-employed or work as an independent contractor, but you still need a sponsoring agency. The sponsoring agency is usually a brokerage or agency that you contract with. You cannot hold a license without a sponsor, even if you own your own business.