Preparing for the Life and Health Insurance Agents Exam
By Victoria Trix
The state exam required for the licensing of agents to sell health and life insurance policies has a precondition of completion of specific pre-exam coursework. Since each state has its own requirements for pre-licensing coursework, the yellow pages or internet are the best sources for obtaining a list of course administrators. Expect to pay approximately $150 to $200 for the pre exam course, during which you will learn how and where to schedule your state licensing exams. Prices will vary, so it is advisable to check with several course administrators before selecting a program to attend. Since the requirements of the course are mandated by state law, you can be assured that the content level of the education will be consistent from program to program.
The exam itself is comprised of 150 questions, with a time limit for completion of 2 1/2 hours. The general subheadings of the life insurance portion of the test include life insurance basis, policy provisions, life insurance policy options and riders, life insurance tax considerations, qualified life insurance and annuity plans, annuity policy information and annuity policy tax considerations and implications. The general topics on the health insurance portion of the test are: health insurance basics, individual health, group and dental insurance policies and provisions, disability income, medical plans, special needs individual insurance, HMO’s and tax considerations for health insurance.
In addition to the required pre-licensing exam courses, there is a host of other courses materials available that will further instruct you on how to study for the state exams. There are optional follow up courses that can be taken which are specifically geared to studying for the test, including what are known as CramCourses. If not desiring to expend any additional finances on the coursework, most pre-requisite courses (as well as the subsequent optional courses) take several weeks to complete, during which time informal study groups usually result from the acquaintances made, which are very useful in the weeks just prior to the licensing exams. In addition, the instructor of the formal pre-exam course you will take will have additional study guide information available including resources for practice manuals, flash cards and access to test samples of practice licensing exams which are disbursed as instructional tools.
Many websites offer exam study aids that include audio CD’s to accompany a comprehensive study guide manual. A website like Craig’s List or Ebay will likely have used copies of required course materials which are conveniently highlighted by the previous user to make studying the high points run a bit more smoothly. In all cases, be sure that the study guides you purchase and use are for the licensing exams administered by the state in which you intend to sell health and life insurance.
On the day of the exam, try to wake from a good night’s sleep, eat a light breakfast, and be prepared to not be allowed to take anything into the exam with you except a photographic proof of identity, a copy of your completion of the pre-requisite coursework and a pencil. Purses and backpacks will not be allowed in testing facilities, and no electronic devices with storage capability will be permitted on site.
