How to Pass the Life Insurance Agent Exam: A Complete Guide

Becoming a licensed life and health insurance agent opens doors to a rewarding career, but before you get there, you must pass the insurance agent exam. This exam can be a challenge, but with the right preparation, you can pass it on the first try. Here’s a step-by-step guide to help you ace the exam and start your journey as a licensed life insurance agent.

1. Understand the Exam Format

The first step in your preparation is understanding the structure of the life insurance agent exam. Each state has its own version of the test, but they typically consist of:

• Multiple-choice questions: Most exams consist of 100-150 questions. – Less if you are taking just life or just health and not the combo
• Exam duration: Expect to spend around 1-2 hours on the exam.
• Passing score: A typical passing score is around 70%, though this varies by state.

The exam will test your knowledge of both general insurance concepts and topics specific to  life and health insurance products and regulations. You’ll need to be familiar with topics such as:

• Types of life insurance policies (term, whole life, universal)
• Insurance premiums and benefits
• Policy riders and options
• State-specific insurance laws and regulations
• Ethical practices in the insurance industry
• Standard Insurance terms
• Types of health policies
• Federal laws that regulate life and health insurance
• Life and health related topics such as medicare, social security and long term care

2. Choose a Quality Pre-Licensing Course

Many states require you to complete a certain number of pre-licensing education hours before taking the exam. Even if it’s not required, enrolling in a pre-licensing course is highly recommended. These courses provide a structured approach to learning the material and ensure you understand the key concepts.

• Online courses: These are flexible and allow you to study at your own pace.
• In-person courses: Some people prefer the discipline of attending a class.

Make sure the course is approved by your state’s licensing board. The course will cover everything from insurance fundamentals to state-specific laws.

3. Create a Study Plan

Passing the life and insurance agent exam requires focused study. A study plan will help you break down the material into manageable chunks and keep you on track. Here’s how to structure your plan:

• Set a schedule: Allocate a set number of hours each day or week to study.
• Use active recall: Instead of passively reading through your notes, ask yourself questions and try to recall the information.
• Take breaks: Study in blocks of time (e.g., 25-30 minutes), and take short breaks to avoid burnout.

4. Use Practice Exams

One of the best ways to prepare for the life and health insurance agent exam is to take practice exams. These simulate the actual test and help you identify your weak areas. Many pre-licensing courses include practice tests, but there are also additional resources online.   There are free tests available on platforms like YouTube where you can get free videos to test your skills.  BE SURE TO CHECK OUT OUR YOUTUBE CHANNEL FOR SOME GREAT VIDEOS ON PASSING THE LIFE AND HEALTH INSURANCE EXAM

• Timed practice tests: Simulate exam conditions by timing yourself.
• Review mistakes: Go back to the questions you got wrong and understand why.

Practice exams will help you get familiar with the format, build confidence, and improve your test-taking strategies.

5. Focus on Key Topics

While it’s important to have a well-rounded understanding of life insurance, some topics are tested more frequently than others. Focus on these areas during your study sessions:

• Types of life insurance policies: Be familiar with the differences between term, whole life, and universal life insurance.
• Policy provisions and options: Understand riders, policy loans, nonforfeiture options, and settlement options.
• Underwriting and premiums: Know how insurance companies assess risk and determine premiums.
• Types of health insurance policies: Be familiar with the terms and specifics of health insurance policies such as occupational and non-occupational and high deductible plans and HSAs
• Policy provisions and options of health insurance: Understand elimination periods, probationary periods and other key terms
• State laws and regulations: Each state has specific laws regarding insurance, so pay close attention to state-specific material.

6. Stay Calm and Focused on Exam Day

The day of the exam can be nerve-wracking, but staying calm and confident is key to passing. Here are some tips for exam day:

• Get plenty of rest: Make sure you get a good night’s sleep before the exam.
• Arrive early: Plan to arrive at the testing center at least 30 minutes early.
• REMEMBER TO BRING WHAT YOU WERE TOLD — AND NOTHING ELSE : Most states require VALID PHOTO ID.   Do not bring any testing material to the exam
• Read the questions carefully: Don’t rush. Take your time to read each question thoroughly and eliminate incorrect answers.
• Pace yourself: Manage your time wisely. If a question stumps you, move on and return to it later.

7. What to Do After Passing the Exam

Once you pass the life insurance agent exam, you’ll need to submit your results to your state’s licensing authority. You may also need to:

• Submit a background check: Many states require a background check before issuing a license.  Many require fingerprints.  Be prepared for both of those and the fees that go with them.

Once you’re licensed, you’re ready to start your career as a life insurance agent! Many agents start by joining an established firm or becoming an independent agent. Either way, passing the life insurance agent exam is the first step toward a successful career in insurance.