Insurance brokers, also known as insurance “agents” or “producers”, are responsible for providing the public with the opportunity to learn about and purchase insurance. This is the case for home, car, health, and of course life insurance.
Life insurance is an important tool for families to protect themselves against extreme tragedy and financially debilitating circumstances. While most people do not want to consider the possibility that one of their loved-ones will pass, the truth is that planning for the worst-case scenario is both responsible and practical—with the right coverage. That is where a life insurance broker comes in.
Life Insurance Broker License
As you can see, an insurance agent has a crucial role in helping families. As a result, states will issue an insurance broker license to certified individuals to maintain high standards within the industry.
If you are looking to buy life insurance, be sure to ask your agent to see their insurance broker license. This credential is proof that they went through the proper training and testing in order to write your policy. Each license is state specific and will list information such as issue date, expiration date, qualifications, and of course the name of the agent.
How to Get Your License
The requirements for a life insurance broker license will vary state-by-state. Right from the start, it is important to remember that the state you must be licensed for the state you are SELLING in! For example, if you live in Virginia but are commuting to Maryland to write life insurance policies, you must be licensed in Maryland.
Once you determine the state(s) you will be working in, you will need to review their life insurance broker license requirements. It is not uncommon for states to do a background check and a fingerprint check. Some states have a mandatory number of training hours needed to be licensed, and in most cases you will need to study for an exam.
The license exam will range in difficulty and format between states, but you can generally expect to be tested on material related to insurance laws, how certain policies work, and best life insurance agent practices.
Help Passing Life Insurance Broker License Exam
Many individuals will have questions and concerns while trying to get licensed. Additionally, it can be difficult studying on your own without any form of guidance. Fortunately, there are many insurance broker license programs and courses designed to help you. Before beginning the process, be sure to research programs specified to the state you wish to be licensed in.
Lastly, another great way to prepare to get your license is to work with an employer. Some individuals already know where they would like to work when they become licensed. It is highly encouraged to contact an insurance company and see what sort of help they may offer.
Typically, life insurance agents will work with Insurance Marketing Organizations (IMOs). These are companies that aim to set independent agents up for success by assisting with contracting, training, and sometimes finding families to sell to. A high-quality IMO will have a custom-made program to help you get your state-issued insurance broker license.