To sell life insurance, there are several paths you can take, but all of them include passing at least one exam. You can obtain a life insurance license, which, depending on the state you want to work in, can be obtained separately from a health insurance license or in conjunction with it. If you want to sell certain forms of life insurance as part of the securities sale, you will need to pass finra and nasaa exams which include other types of investments.
This article walks you through the steps to pass the life insurance exam and get your license.
Reading: How to pass health insurance exam
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Step 1: Learn about your state requirements and get your exam summary
Each state has different requirements and different types of tests. therefore, the first thing you should do is check with the insurance department in your state (or the state where you will be working) to find out the requirements. for example, some states require license candidates to complete pre-licensing education before taking the exam. therefore, before you register for the exam, you’ll want to make sure you’ve met that requirement. You should also check if you need a sponsor to take an exam; some states will not allow you to take the exam without one. And finally, be sure to print the exam outline for your state.
step 2: schedule your exam
You can choose the date and time of your exam in most states. scheduling options are usually found on the website of the respective state insurance department. To give yourself time to study, schedule your test at least two weeks in advance. The cost of taking the test varies from state to state, but is expected to be between $40 and $150.
step 3: have a study plan to pass the life insurance exam
You’ll need to spend 35-40 hours studying if you hope to pass. overcrowding is not recommended. instead, plan to study for the test over the course of several weeks. Have a realistic plan that is easy for you to follow, dividing your study time into study sessions that give you enough time to absorb the material. Setting up a study calendar can help you stick to your plan. An insurance certification study packet can help you stay on track so you don’t get swamped at the last minute.
step 4: follow the outline of the state exam
The state outline for the exam lists the topics that will be covered and how they are weighted. These are the life insurance topics you are most likely to be evaluated on:
- general knowledge about life insurance
- life insurance policies
- Additional Clauses and Life Insurance Coverage Options
- life insurance tax issues
- annuity policy tax issues
- Please read each question carefully before answering it. most questions will have a lot of detail and qualifying information. try to focus only on the information in the question and avoid making assumptions just to fill in the blanks.
- Find the questions you know the answers to and answer them first. if you get stuck, move on and come back to it later.
- do not leave any questions blank. guessing the answer still gives you a 25% chance of getting it right. And, if you can eliminate any of the multiple choice options that you know to be wrong, you’ll have an even better chance of guessing the correct answer.
If you are taking a combined exam, there will also be issues related to health insurance. The exam outline also tells you the number of questions included in each section of the exam. you should focus on the sections with the most questions and the topics with the most weight so that you master the most important things first. you have a better chance of success if you follow that plan.
step 5: preparation and practice
Taking an exam preparation review course can increase your chances of passing. You can choose from live classes, online courses, or print books for self-study. You must also take practice tests. this will help you determine how well you have absorbed the material and what still needs your attention. A mock or practice exam that mimics test conditions allows you to judge whether your pace is adequate to complete the exam in the allotted time.
Step 6: Learn about the test center process
Often, what trips students up is not knowing what to expect on test day, even if they are prepared. try to visit the test center before the exam – see how long it takes to get there and familiarize yourself with the testing area. Find out what forms of identification are needed to take the test so you can have them ready on test day. each state has its own requirements. On the day of the test, try to arrive at least 30 minutes early. you should expect to put all of your belongings in a locker before you are assigned to a testing cubicle. When you arrive at your assigned testing location, an employee will explain the expected conduct.
step 7: keep calm and take the test
Here are some tips on how to handle questions on the exam:
once you complete the exam, you will get the results. If you pass, you will receive instructions on how to apply for your license with the state. You may need to wait a few days for the test center to report that you have passed before you can apply for your license. if it fails, you’ll get a diagnostic report so you know which areas to focus on next time.
ready to pass the life insurance exam?
Although pass rates are around 70% in most states, the life insurance licensing examis still no easy feat. You can increase your chances of passing the life insurance exam by following these steps. And to give you even more advantages, try an insurance license exam preparation package.