How Much Does A Life Insurance License Cost?

  1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    It varies based on the state in which you reside. If you are considering becoming a life insurance agent, you should call your state's insurance department, or go to their website. It will also depend on the lines of insurance your license will cover. In addition to the initial licensing fees by line of insurance, there may be related fees e.g. insurance exam and other costs paid to third-parties associated with the pre-licensing requirements.
    Answered on April 17, 2013
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  2. 1805 POINTS
    Samuel Smith
    Enrolled Agent-licensed to practice before the IRS, Samuel N Smith, EA, South Carolina
    There are different levels of "cost" in becoming a licensed "life insurance agent". In South Carolina you have to take the required preparatory licensing materials and then take an exam. These materials in South Carolina is like $140 just for the materials and then there is an additional "test exam fee" that has to be a "proctored exam" and it is approximately another $100. In South Carolina once you have passed the exam and you apply for yuor license with a company of your choice there is not a "licensing fee" in South Carolina. Then you have continuing education costs each year. For example, if yuo are going to sell "annuities" you have to take LIMRA courses in "Money Laundering" that typically will cost you $150. You have to stay current with the continuing education requirements that are set by the Deaprtment of Insurance in your State.
    Answered on November 15, 2013
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  3. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    In addition to what Samuel said, if you want to sell life insurance in other states, you will need a nonresident license for those states. You will also need to purchase E & O insurance, which stands for Errors and Omissions Insurance. If you are working for an agency, they might pay some of these fees for you.
    Answered on November 15, 2013
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