The state of Texas has various different insurance licenses available for those looking to start a new, exciting career in this industry. Texas residents who are specifically looking to sell life insurance will find that there are several steps involved with obtaining a license in the state. However, with the right documents and licensing, any person willing to put in the work and effort will be able to start a career selling life insurance in Texas.
Choosing the Right Type of License
The first and most important step in getting your life insurance license is deciding what type of license you want. When deciding to get a license, you can either choose to receive a General Lines license or simply a specialty-only license.
There are two different type of General Lines licensing categories available for those looking to get their life insurance license in the state of Texas; Property and Casualty and Life and Health. The Life and Health specialty deals with accident, health and HMO, annuities and, of course, life insurance coverage. With a General Lines license, you will be able to represent a larger collection of clients, and while it will take a little extra time, you can walk away with a license that allows you to do more with your career. With a General Lines license you can eventually switch your focus with insurance sales, and you will be in a better position to eventually become an agency owner.
The other option is to become a Life (only) agent and to only receive your licensing to sell life insurance. If you do this, you will not be able to sell any other type of life insurance in Texas.
About the Process
In the state of Texas, there are no pre-licensing education requirements, like there are in other states. However, it is highly recommended that anyone who is looking to receive their life insurance license, attends one of the local licensing courses in their area. There are also online classes that you can take that can help you prepare for the licensing exams.
If you are not a resident in the state, but still want an insurance license, you will need to take an additional exam to get a resident license. Once you have a resident license in any state, you will be able to apply for a non-resident license in any state.
After the completion of a pre-licensing course, you will need to take the state mandated licensing test offered at PearsonVue. The Texas Department of Insurance outsources the administration of all of their insurance examinations to this third party company. Applicants who wish to contact PearsonVue directly with any questions about their application or the testing process can visit pearsonvue.com, or contact them by email at email@example.com or by phone at (888) 754-7667.
If you are planning on taking the Texas General Lines Exam and you pass this test, it does not automatically entitle you to sell life insurance in Texas. There is also a licensing procedure that you need to pass in order to officially obtain your license within a year of passing the exam.
Once the test has been completed, MorphTrust will need to process every applicant’s fingerprints for their FBI criminal background check. Appointments will need to be set in advance for the fingerprinting background check, as getting an appointment can be difficult. For those who are unable to pass their exam for the first time, they will be permitted to make a second and third attempt to pass the examination.
Licensing Fees for Texas Life Insurance Agents
There are several fees to be aware of during
the licensing process. Typically the life insurance exam will cost over $100 and require an overnight stay in faraway city. There is also a cost for the fingerprinting exam (typically $44.50) and the licensing application form which costs $50 to fill out per license type. There is also an addition $10.67 to fill out the application electronically through sircon.com.
Working in the Life Insurance Field
Working as a life insurance sales agent can be a profitable career for those who are willing to put in the effort to receive the training they need and to meet the licensing requirements. Typically in order to find success in the life insurance sales industry, you will need to be thick-skinned and have a certain sales-driven tenacity. Life insurance agents will need to be able to handle rejection, be extroverted, and unafraid of conflict. These personality traits are important for anyone looking to find success in the industry.
With your official license, you will be able to sell life insurance policies to clients throughout the state of Texas. As a life insurance agent, typically you will receive anywhere from 30% to up to 90% of the premium or the amount paid by the client within the first year. In the years following, agents will continue to receive a small percentage (usually 3-10% of each year’s premium), an amount known as “trailing commissions.”
Finding a Life Insurance Job in Texas
Currently many big insurance agencies are adding thousands of new life insurance agents to their team. Many of these companies are looking for everyone from new graduates to real estate agents, bankers, mortgage brokers, lawyers and more as potential new life insurance agents for their team. As a life insurance agent, many individuals are able to earn large paychecks rather quickly. This is one of the major factors enticing working professionals today to turning to a career in life insurance sales. If you are looking for a life insurance job in Texas, there are several things to keep in mind regarding the hiring process.
First, many companies will want to make sure that you have taken a licensing class before they will hire you as an agent. This class typically runs between 25 hours and 50 hours. When looking for your first career in life insurance sales, you will need to have a powerful resume that highlights your past work experience, even if it isn’t in insurance or sales. The right resume should highlight your entrepreneurial attitude and examples of your initiative to make things in your career happen. The resume will want to showcase a self-starter attitude as well as positive work experience in any industry can be helpful.
Once you have received your Texas life insurance license, you will also need to participate in ongoing education. Typically, most Texas insurance licenses only last for about two years, so relicensing exams will need to be taken in order to keep licenses up to date. Agents are also required to take 40 hours of continuing education and an additional four hours of ethics training before they renew their license every two years. Failure to cooperate with these requirements will result in the expulsion of your license.
Other Insurance Job Opportunities
While life insurance is a popular field for those looking for a career in sales, there are also other insurance opportunities available for those looking to start a new career. If you make the decision to get your General Lines license you will have the opportunity to work in other health, HMO and annuities sales positions. This type of license will also put you in a better position to eventually own your own insurance firm.