Becoming a licensed life insurance agent is a rewarding career step, but it requires dedication, preparation, and successfully passing a state life insurance exam. Each state has its own set of requirements and licensing processes, making it essential to understand your specific path. Some states require pre-education courses before the exam, while others allow you to pass the exam before completing the rest of the application process.
Regardless of your state’s guidelines, one constant is that you need to prepare thoroughly for the life insurance exam. This comprehensive guide will walk you through creating an effective study plan, what to expect on the exam day, and the steps to take after passing.
Life Insurance Exam Study Plan
Creating a structured study plan is crucial to passing the life insurance exam. Although timelines may vary based on your schedule and learning pace, a four-week plan is a standard starting point. Here’s a week-by-week breakdown:
Week 1: Develop a Study Schedule
- Time Management:
Review your work, family, and personal commitments. Dedicate specific daily blocks for studying to build a routine. - Focus on Pre-License Education:
If your state requires a pre-license education course, complete modules or attend an in-person class. Typical courses take about 20 hours. - Avoid Cramming:
Aim for two hours daily on course material and an additional hour reviewing practice questions. Resist rushing, as understanding concepts deeply ensures success.
Pro Tip: Over 81% of insurance agents-in-training trust Kaplan’s online courses, which boast a 93% pass rate. Consider using Kaplan for comprehensive study support.
Week 2: Master Key Concepts and Take Practice Tests
- Review practice questions and take quizzes to familiarize yourself with the exam structure.
- Build a glossary of essential vocabulary terms like “annuity,” “riders,” and “premiums.”
- Identify weaker areas and focus on understanding concepts rather than rote memorization.
Week 3: Simulate the Exam
- Take a Mock Test:
Replicate the testing environment. Find a quiet space, use a computer, and set a timer. Follow all exam guidelines, such as leaving phones out of reach. - Evaluate Your Performance:
Analyze your mock test results to pinpoint strengths and areas needing improvement.
Week 4: Fine-Tune Your Preparation
- Avoid overloading yourself with new information. Instead, review key concepts, especially weak areas identified in Week 3.
- Prioritize rest, healthy eating, and light physical activity to stay mentally sharp.
Topics Covered on the Life Insurance Exam
The life insurance exam tests your knowledge across general and state-specific topics. Here’s an outline of what to expect:
1. General Insurance Terms
Understand an insurance agent’s duties, from risk evaluation to completing contracts and adhering to ethical standards.
2. Life Insurance Basics
Be familiar with:
- How life insurance works.
- Different policy types (e.g., term life, whole life).
- Underwriting procedures.
3. Policy Provisions, Options, and Riders
Know details about:
- Contract provisions like misstatement of age or suicide clauses.
- Riders such as accidental death benefits or long-term care.
4. Annuities
Study the structure, benefits, and payouts of annuities.
5. State-Specific Regulations
Each state has unique rules for:
- Agent licensing and continuing education.
- Policy disclosures and contract language.
6. Tax Codes and Retirement Plans
Understand how life insurance impacts taxes and retirement planning.
Preparing for the Exam
1. Use Practice Tests
Practice tests familiarize you with the format and timing of the actual exam. Treat them as a simulation—no notes, no interruptions.
2. Know Your State Requirements
Each state has its own prerequisites, from fingerprints to background checks. Confirm the requirements and deadlines to avoid delays.
3. Invest in Pre-License Education
Even if your state doesn’t mandate it, enrolling in a comprehensive course significantly increases your chances of passing on the first attempt.
Recommended: Kaplan Education’s courses include practice exams, vocabulary drills, and expert-led instruction tailored to your state.
Exam Day: What to Expect
On the day of your exam, follow these guidelines to ensure a smooth experience:
What to Bring
- Two forms of ID (one with a photo).
- Proof of pre-license education completion (if required).
- Your Exam Admissions Ticket (check state guidelines).
What to Leave at Home
- Study materials.
- Personal electronics, bulky clothing, or valuables.
At the Testing Center
- Arrive 30 minutes early.
- Complete a tutorial to familiarize yourself with the test interface.
- Follow all proctor instructions.
Important: Some testing centers may require additional security steps, like palm scans during breaks.
What Happens Next?
If You Pass
- Celebrate!
- Your score will be automatically sent to your state licensing board.
- Complete remaining steps, like submitting fingerprints or completing your final application.
If You Fail
- Review your score report for detailed feedback.
- Focus on weaker areas and retake the test. Remember, many states allow multiple retakes, but deadlines may apply.
Ready to Start Your Journey?
Passing the life insurance exam is the first step toward a fulfilling career. By following a structured plan, investing in quality education, and dedicating time to practice, you’ll be on your way to success.