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.
This particular industry has seen resurgence since the economic recession. Many companies downsized agents prior to the slowdown. They relied on financial advisers, stockbrokers, banks, and the internet for sales. Whole life policies were touted as unattractive products. Many financial planners advised clients to purchase cheap term policies. They suggested investing the money that clients saved in the stock market. When the stock market plummeted, however, those "unattractive" whole life policies retained their value.
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.
Continuing education requirements vary from state to state. Most require license renewal every two years. The number of continuing education hours can be as few as eighteen and as many as thirty. Requirements are decided by state departments of insurance. Some states require specific courses. For instance, nearly twenty states require ethics and consumer protection courses.
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.
If a firm is looking for CE providers, they should take a few steps. One is to hire a compliance specialist who has Series 7, 24, and 63 licenses. A local compliance officer employed by government can help small firms. Larger firms need to hire a specialist. A firm should make sure that the course provider offers classes for all of the firm's services. These could include CFP, CIMA, CPA, ChFC, and CLU credits.
All states set and maintaining life insurance continuing education requirements. These requirements are different from state to state. Therefore, it is important to do due diligence before committing to a CE provider. In a growing industry, licensure compliance and continuing education are major priorities.
This particular industry has seen resurgence since the economic recession. Many companies downsized agents prior to the slowdown. They relied on financial advisers, stockbrokers, banks, and the internet for sales. Whole life policies were touted as unattractive products. Many financial planners advised clients to purchase cheap term policies. They suggested investing the money that clients saved in the stock market. When the stock market plummeted, however, those "unattractive" whole life policies retained their value.
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.
Continuing education requirements vary from state to state. Most require license renewal every two years. The number of continuing education hours can be as few as eighteen and as many as thirty. Requirements are decided by state departments of insurance. Some states require specific courses. For instance, nearly twenty states require ethics and consumer protection courses.
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.
If a firm is looking for CE providers, they should take a few steps. One is to hire a compliance specialist who has Series 7, 24, and 63 licenses. A local compliance officer employed by government can help small firms. Larger firms need to hire a specialist. A firm should make sure that the course provider offers classes for all of the firm's services. These could include CFP, CIMA, CPA, ChFC, and CLU credits.
All states set and maintaining life insurance continuing education requirements. These requirements are different from state to state. Therefore, it is important to do due diligence before committing to a CE provider. In a growing industry, licensure compliance and continuing education are major priorities.
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