life insurance agents wear many hats in today’s economy. They sell policies that pay beneficiaries when policyholders pass away. They can also have a wide array of other skills. These may include retirement planning, estate planning, or pension plan set-up. life insurance continuing education credits are required in all states for license renewal. They are key to adding to and maintaining agent skill sets.
Since the recession of 2008, the industry has blossomed. Prior to the recession, many companies eliminated agent positions. Instead, they let banks, stockbrokers, financial advisers, and internet sites produce their sales volume. financial planners lambasted whole life policies. They advised their clients to buy inexpensive term policies. They told clients to invest the money they saved in stocks or mutual funds. Then, the stock market collapsed. When securities values tanked, whole life policies still retained full value.
Based on the stability of the product, there is now a large demand for agents. companies are recruiting former lawyers, bankers, mortgage brokers, and real estate agents. The industry is grueling in the early years. Few agents earn more than $35,000 in their second years. After four years, only twenty percent stay in the field. agents who stick it out into the fifth year, however, may find themselves making $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.
Courses should be state-accredited and nationally approved. Some firms will reimburse their agents for CE. Others will expect the agents to pay on their own.
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.
