Insurance is an industry where corporations hold large sums of money with the promise to pay some out in the event of an emergency. This fact has led to the industry being highly regulated, and life insurance is no exception. If you want to sell life insurance legally, you will need to get a license in every state where you want to sell.
Education and Testing
To qualify for an insurance license, you must complete a course of education that teaches you about the laws and practices for that kind of insurance. Individual state requirements will vary. However, the norm is a two-week class that bundles life insurance with health insurance. You can take these classes at a physical school or via an Internet distance learning program. Once you've completed your course, you must then pass a state licensing exam before you receive your actual life insurance license. Once you have your license, most states require regular continuing education in order to maintain it.
Background Requirements
Potential life insurance agents in all states must pass a criminal history check prior to receiving their license. While specifics vary from state to state, a felony conviction will disqualify you in most states for several years. Many finance-based misdemeanors will disqualify you as well, and any conviction for fraud -- especially insurance fraud -- may mean you are disqualified for life. Generally, the background requirements for your life insurance license are identical to other insurance licenses.
Multiple States
Once you've received your life insurance license for one state, it's a good idea to get licensed in nearby states. If you sell life insurance remotely, you will eventually want to be licensed to sell life insurance in as many states as possible. Fortunately, nearly all states have reciprocal arrangements with other states when it comes to life insurance licenses. You will only have to prove you've been licensed and pay a fee to that state's insurance board. In some cases, the state will run an independent criminal history check.
Earning Potential
Life insurance sales is among the jobs with the highest potential earnings without requiring a college degree. According to the U.S. Bureau of Labor Statistics, the median wage for life insurance agents in 2008 was $45,500. Half of the licensed life insurance agents in the U.S. made between $30,000 and $70,000. Top earners in the field routinely clear six figures.
