Life insurance agents do more than sell policies in today's world. Of course, they sell the product that gives the industry its name. However, they also tend to acquire a wide variety of additional skills. These include estate planning, pension plan set-up, and retirement planning. Every state requires life insurance continuing education credits when agents renew their licenses. CE credits are important keys to maintaining and building professional development.
There has been resurgence in this field since the 2008's economic slowdown. Before 2008, many companies were not actively recruiting new agents. They depended instead upon the internet, banks, financial advisers, and stockbrokers for sales. These painted whole life policies as inferior products. Clients were advised to purchase a cheap term policy and invest their savings in the stock market. The tables turned, however, when the stock market plunged. The inferior whole life policies retained value while other investments tanked.
Many companies are now actively recruiting agents. They recruit former real estate agents, mortgage brokers, bankers, and lawyers. Life insurance agents have a difficult path. Seventy percent of agents earn less than $35,000 in their second year. Only twenty percent stay on the job for four or more years. After the fifth year, however, agents who persevere can make $100,000 or more.
Continuing education courses cover a wide variety of topics. Firm element and regulatory classes include FINRA (Financial Industry Regulatory Authority) rules and regulations. They also include ethics, suitability, and money laundering prevention, securities, and the economy. Additional courses may include accelerated benefits, distribution planning, and annuities. Additional courses may include health and benefits insurance, health savings accounts, and Medicare and Medicaid.
Each state has its own CE expectations. License renewal most often occurs every two years. States can require from around twenty to around thirty hours of courses. State insurance departments decide what the expectations will be. Some of them require very specific coursework. For example, nineteen states, as of recent data, required consumer protection and ethics training.
There is not a lot of information out there about choosing a CE provider. As a result, agents must do their own due diligence. Referrals from colleagues or from a firm can weed out undesirables. Any CE provider should have a strong background and a strong reputation. Providers should offer online, textbook, and live classroom courses. Courses should be state-approved and also approved nationwide. While some firms will reimburse their employees for CE, others will not.
Firms looking to push many agents through CE should take some extra steps. The most important is to make sure that the provider offers a wide variety of courses, and that the courses cover all of the services that the firm offers. This means checking for CPA, CIMA, ChFC, CFP, and CLU offerings. Small firms should seek out a local government compliance officer. Large firms should hire a compliance specialist with Series 7, 24, and 63 licensure.
All agents in all states must complete life insurance continuing education requirements. Agents should research their state's requirements and their CE provider before signing on for classes. Agents and their companies must make compliance for CE a high priority.
There has been resurgence in this field since the 2008's economic slowdown. Before 2008, many companies were not actively recruiting new agents. They depended instead upon the internet, banks, financial advisers, and stockbrokers for sales. These painted whole life policies as inferior products. Clients were advised to purchase a cheap term policy and invest their savings in the stock market. The tables turned, however, when the stock market plunged. The inferior whole life policies retained value while other investments tanked.
Many companies are now actively recruiting agents. They recruit former real estate agents, mortgage brokers, bankers, and lawyers. Life insurance agents have a difficult path. Seventy percent of agents earn less than $35,000 in their second year. Only twenty percent stay on the job for four or more years. After the fifth year, however, agents who persevere can make $100,000 or more.
Continuing education courses cover a wide variety of topics. Firm element and regulatory classes include FINRA (Financial Industry Regulatory Authority) rules and regulations. They also include ethics, suitability, and money laundering prevention, securities, and the economy. Additional courses may include accelerated benefits, distribution planning, and annuities. Additional courses may include health and benefits insurance, health savings accounts, and Medicare and Medicaid.
Each state has its own CE expectations. License renewal most often occurs every two years. States can require from around twenty to around thirty hours of courses. State insurance departments decide what the expectations will be. Some of them require very specific coursework. For example, nineteen states, as of recent data, required consumer protection and ethics training.
There is not a lot of information out there about choosing a CE provider. As a result, agents must do their own due diligence. Referrals from colleagues or from a firm can weed out undesirables. Any CE provider should have a strong background and a strong reputation. Providers should offer online, textbook, and live classroom courses. Courses should be state-approved and also approved nationwide. While some firms will reimburse their employees for CE, others will not.
Firms looking to push many agents through CE should take some extra steps. The most important is to make sure that the provider offers a wide variety of courses, and that the courses cover all of the services that the firm offers. This means checking for CPA, CIMA, ChFC, CFP, and CLU offerings. Small firms should seek out a local government compliance officer. Large firms should hire a compliance specialist with Series 7, 24, and 63 licensure.
All agents in all states must complete life insurance continuing education requirements. Agents should research their state's requirements and their CE provider before signing on for classes. Agents and their companies must make compliance for CE a high priority.
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