If you're looking for a stable, flexible career with strong earning potential, becoming a licensed insurance professional is a smart move. There are several types of insurance products (referred to as “lines of authority”) you can sell, depending on your license, and the Life & Health license is one of the more common options.
But before you can start selling policies, you have to get a state-issued license. This guide walks you through how to get a Life & Health insurance license, the products you can sell, and tips to help you along the way.
Summary: How to Get a Life and Health Insurance License
Every state has their specific requirements, but most of them have a similar framework. To get a life and health insurance license, you’ll need to:
- Choose your license type and review your state’s requirements, ensuring you meet things like age and residency
- Complete a pre-licensing course
- Pass your state licensing exam
- Apply for your license through your state
When you choose XCEL for your insurance licensing classes and insurance exam prep, you can be ready to pass the exam in just 10 days!
What Is a Life and Health Insurance License?
A life and health insurance license allows you to legally explain and sell life insurance and health insurance products and write life and health insurance policies that protect individuals and families in the state where your license is issued. It combines a life insurance license and health insurance license, so you have more opportunities to create a customer life-cycle of risk management and financial planning that prepares them for the future while offering you with stronger earning potential.
In most states, life and health are combined into a single license, although the products you sell fall into two distinct categories.
What Is a Life Insurance License?
Life insurance provides financial benefit to beneficiaries in the event of the policyholder’s death. Thus, a life insurance license allows you to sell life insurance policies, which are often a key part of retirement planning and risk management planning.
Common products include:
- Term life insurance: Provides coverage for a specific period, paying a death benefit to beneficiaries if the insured dies during the coverage period
- Whole life insurance: Provides coverage for the individual’s entire lifetime, combining a benefit with potential cash value accumulation
- Universal life insurance: Provides lifelong coverage with potential cash value accumulation, flexible premium payments, and in some cases, adjustable death benefit options
- Final expense policies: Provide coverage for burial, funeral, or other end-of-life costs
- Annuities: A financial product where the policyholder pays money to the insurance company, then they pay you a regular income overtime, usually in retirement (Note: Most states require additional certification to sell annuities)
With this license, you can help clients plan for long-term financial security, protect their income and assets, and ensure they can cover healthcare costs, end-of-life expenses, and debt. Having a life insurance license can be a key part of acting as a financial planner, estate planner, or wealth strategist.
What Is a Health Insurance License?
A health insurance license allows you to sell policies related to medical coverage and healthcare expenses.
This includes:
- Individual and family health plans
- ACA/Marketplace insurance
- Medicare plans (often with additional certifications)
- Disability insurance
- Long-term care coverage
Why Earn a Life & Health Insurance License?
Earning your license opens the door to a career that combines income potential, flexibility, and meaningful work.
Strong Earning Potential
Most insurance agents earn commission-based income, meaning your earnings grow as your client base grows. Also, you will receive an ongoing residual income for the length of time your client holds their policies.
Career Flexibility
When you get a Life & Health insurance license, you have a variety of options available that you may not realize. Consider these options:
- Work for an agency or brokerage where you earn a reliable income as well as a commission for the products you sell
- Work as an independent agent where your income is solely commission-based, but you have greater freedom in your work and have fewer limitations on your income
- Work in compliance, regulatory services, or administrative roles where you’re behind-the-scenes
- Act as an underwriter, where you can assess risks and determine policy terms for insurance applicants.
High Demand for Services
Life and health insurance are essential products and are in-demand regardless of whether the economy is weak or strong. And this demand creates a consistent need for licensed professionals.
Opportunity to Help Others
You’ll play a key role in helping individuals and families protect their financial future and access healthcare.
Consider Your Career with a Life & Health Insurance License
Before getting licensed, it’s important to understand what your day-to-day career might look like.
As a Life & Health insurance agent, tasks typically include:
- Reaching out to leads, getting referrals, and networking
- Meeting with clients, assessing situations, recommending options, or explaining coverage details
- Completing applications, calculating premiums, and finalizing sales and enrollments
- Maintaining client relationships by conducting reviews and answering questions
- Providing claims support by explaining processes, gathering documents, and communicating with the insurance company
Skills that set you up for success as a Life & Health insurance agent:
- Strong communication skills
- Ability to build relationships and trust
- Product knowledge and industry understanding
- Resilience and self-motivation
XCEL’s expert-instruction and state-specific materials ensure you’re ready for career success!
Captive vs Independent Insurance Producer
One of the biggest career decisions you’ll make is whether to work as a captive or independent insurance producer.
Captive Agent
A captive agent works for a single insurance company, selling only that company’s products. You’ll receive more structured support and training to start your career, and it’s often much more stable. However, there is less flexibility as a captive agent.
- Works for a single insurance company
- Sells only that company’s products
- Receives structured support and training
- More stability, but less flexibility
Independent Agent
An independent agent works with multiple insurance carriers and can offer clients a wider range of options. As an independent agent, you have greater flexibility and earning potential, but this requires more self-direction and business development.
Both paths can be successful, it simply comes down to your career goals and preferred work style.
The Four Steps to Get a Life and Health Insurance License
Here’s a step-by-step breakdown of exactly how to get licensed:
Determine Your License and State Requirements
Each state regulates insurance licensing, so requirements vary slightly depending on where you get your Life & Health insurance license. Before starting, make sure you do the following:
- Confirm your state’s licensing requirements
- Verify age and residency requirements
- Check if pre-licensing education is required (most states do)
- Understand exam and application guidelines
Complete Insurance License Classes (Pre-Licensing)
Most states require you to complete a pre-licensing course before taking the exam to ensure you have a strong understanding of insurance fundamentals, policy types and features, and state regulations and ethics. While not all states require these pre-licensing courses, it’s a good idea to take them so you know what to study for the exams and understand the profession.
Make sure you look for a pre-licensing education provider that includes:
- State-specific materials
- Expert-led instruction and clear, structured learning
- Easy-to-follow materials in flexible formats, including self-paced or live-streaming classes
XCEL is the leading provider of pre-licensing education! Now, with our AI-powered study partner, Rubi™, you’ll get immediate, unlimited support to keep you on track.
Pass the Insurance License Exam
Once you’ve completed your pre-licensing education, you’ll need to pass your state exam. Again, each state varies, but the exam includes multiple-choice questions focused on life and health insurance topics and state-specific regulations. To succeed, make sure you complete the following:
- Get familiar with your state’s exam syllabus and what’s covered
- Take practice exams and simulated exams to know what to expect
- Focus on where you’re weakest to build up your knowledge
Apply with Your State’s Department of Insurance
After passing your exam, you’ll submit your application to your state’s Department of Insurance. You’ll need to pay for your license application fee and submit to a background check and possibly fingerprinting before your license is issued.
Once you’re approved and have your license, you can begin your career!
Get Your Life & Health Insurance License with XCEL
XCEL offers the leading pre-licensing education and exam prep to help you get exam ready! With state-specific, expert-led instruction, plus practice questions, simulated exams, and AI-powered exam prep with Rubi™, you can be ready to pass your exam in as little as 10 days!
