What Is a Life Insurance Producer License?

Pursuing a career in life insurance can be an exciting move and an opportunity to help people gain financial independence. There are certain requirements in order to sell insurance, and one of these is proper licensing. You will need a life insurance producer license.

An insurance producer license allows someone to sell, solicit or negotiate insurance products. You may be more familiar with the term “insurance agent,” but “insurance producer” means essentially the same thing.

State or provincial and territories insurance departments regulate licensing. This practice confirms (and reassures clients) that an insurance producer has the knowledge to educate clients and understands the ethics around doing so. The National Insurance Producer Registry (NIPR) exists to standardize and streamline the licensing process. Still, there are differences from state to state. In Canada, the Canadian Council of Insurance Regulators (CCIR) provides a list of resources by province and territories. 

This article will cover how licensing works in the U.S. and Canada, the step‑by‑step process including costs, timelines, career outlook and tips for launching your career.

What Does a Life Insurance Producer License Allow You to Do?

Getting your life insurance producer license allows you to recommend and sell insurance products to consumers. You might do this work as part of a large employer or as a representative of your own business. With a license in hand, there are a few ways you can begin working: 

• Employed by a carrier or agency: As a producer, you work under a contract that ties you to an insurance company or specific carrier. You can typically only sell the company’s products. This is also sometimes referred to as an “exclusive agent model.” 
• Independent agent or small business: As a producer, you operate like or create your own small business. You will need to contract with insurance carriers to begin selling products. 
• Hybrid: Some insurance companies or agencies (like WFG) connect producers with carriers in pre-negotiated contracts and provide back-office support. This enables producers to work independently and establish their own business without the additional complexity of contracting with carriers. 

If you decide to work as an independent agent, you will need to establish a relationship with the insurance company whose products you intend to sell. When you start an independent business with WFG, we already have those long-standing relationships with insurance companies that have an A rating or higher. This is one of the many benefits WFG provides.

In this heavily regulated industry, you must understand regulatory compliance. Life insurance is subject to complex laws and regulations, and non-compliance could cost you your license or even your business. Earning your license may feel like a burden up front, but some find it is well worth the investment of their time, money and effort.

The license covers you only for work in the state or province/territory in which you got the license. It is possible to obtain a license in more than one state or province/territory. To practice in a second location, you need a non-resident license. You need to provide proof of your resident license and then apply for a non-resident license through the NIPR (U.S.) or CCIR (Canada).

Life Insurance Producer vs. Agent: What’s the Difference?

A life insurance producer and life insurance agent are legally the same thing. Clients will typically be more familiar with the term “agent,” but when researching the licensing requirements, you may encounter the term “producer.” Another term you may encounter is “broker,” which simply means a producer who sells products for multiple carriers — they are not bound to any single carrier.

There are separate types of licenses for insurance adjusters, advisors, surplus lines brokers and third-party administrators. Here we will focus only on producers.

What are the Main Types of Insurance Producer Licenses?

In the U.S., an insurance producer license may cover all types of insurance: life, health, property and casualty, vehicle, etc. However, some states break them down into policy-specific producer licenses, where you choose to specialize in certain lines. Some states combine multiple lines, such as a life/accident license or a life/health license. They may offer a single exam for multiple lines, or different exams for each. Check the requirements of your state.

In Canada, you can opt for a general insurance producer license or a specific life insurance producer license. To provide life insurance products, you need to take the Life Insurance Qualification Program (LLQP). The various provincial regulators offer education courses to prepare for it.

How Do You Obtain a Life Insurance Producer License?

1. Research Jurisdictional Eligibility and Choose Your License Type

Before you start the process of obtaining a life insurance producer license, confirm that you meet the qualifications. You must:

• Be at least 18 years old
• Successfully complete a background check
• Not owe any outstanding income taxes
• Not have had any felony or fraud charges
• Not have past-due child support

Beyond those basics, each state or province has its own requirements. NIPR allows you to search for this information by state. During the application process, you will be issued a unique ​​National Producer Number (NPN) in the U.S. or a Canadian Insurance Participant Registry (CIPR) number in Canada. This identifier allows you to track your application throughout the process.

2. Complete Required Pre-Licensing Education

Next, select a pre-licensing education provider in your state or province/territory and pay for your training. Coursework can take 20–50 hours, and fees can range from $20 to around $250¹.

3. Take and Pass the Licensing Exam

All Canadian provinces and territories and the vast majority of U.S. states require you to pass an exam. The educational courses will help prepare you to take it. Typically, a score of at least 60% for the LLQP across all provinces and territories in Canada, and at least 70% in the United States is required to pass, but again, this varies by state or province/territory.

4. Submit Your License Application and Background Check

After completing the educational requirements and passing the exam, you apply for the license and pay any applicable fees. You will need to periodically renew your license and maintain your skills by taking a minimum number of continuing education (CE) credits in future years. The amount varies by state or province and territory. Different CE courses may focus on specific topics, such as fraud, ethics or claims.

A license is good for two years in many states, provinces and territories. In others, it does not expire as long as you complete CE requirements. Some tie the expiration date to the date of licensure, while others tie it to the producer’s birth month. You will need to submit a renewal application. It is also important to keep your contact information up to date with the licensing entity.

5. Starting Your Business with WFG

If you choose to start your independent business through WFG, you’ll complete a quick registration process and show proof of licensing. Like any business, there are startup costs. At WFG, we are committed to keeping those costs low and transparent. You can find a clear breakdown of licensing and fees on our What to Expect as a WFG Agent page. 

How Long Does It Take to Get a Life Insurance Producer License?

The time it takes to get an insurance producer license varies by person and circumstances, but it typically ranges between two to eight weeks from start to finish. How you pace it is up to you, but you will likely spend the most of your time with the pre-licensing coursework and studying for the licensure exam. 

Your state or province/territory will process your application, which can take another 1–2 weeks. (Check with them individually.) The background check may also take some time, so begin that process early.

How Much Does It Cost to Become a Licensed Life Insurance Producer?

Fees vary depending on where you live and how you choose to set up your business. At WFG, we prepare you with estimated costs, so you can plan ahead. Below, we break it down by country:

Fees in the U.S.

• Initial Fee to Associate: $125
• Pre-Licensing Education Fee¹: $20 - $250 (costs range based on provider)
• Exam Fee²: $100 (approximate cost – varies by state)
• E&O Costs for Life Licensed Agents³: $535 Annually
• Platform Fee for Licensed Agents⁴: $15 Monthly

Fees in Canada

• Initial Fee to Associate $150 + applicable taxes
• Pre-Licensing Education Fee¹ $199 + applicable taxes
• Exam Fee²: $100 (approximate cost – varies by province or territory)
• E&O Costs for Life Licensed Agents³: on average $480 Annually (based on province/territory of licensing)
• Platform Fee for Licensed Agents⁴: $30 Monthly

Is Selling Life Insurance a Good Career Path?

A career in selling life insurance can be fulfilling, flexible, interesting and rewarding. An insurance producer explains, sells and helps clients as their needs change. In the U.S., currently, there are more than 2 million individuals who are licensed and able to sell insurance. Some life insurance producers may also sell other types of insurance, such as home or auto. They may work for large brokerage firms, individual insurance companies, or for themselves.

If you enjoy talking with and helping a diverse range of people, you may find that the life insurance industry taps into your skills. While it is primarily a sales opportunity, it involves empathy and ethics, guiding individuals and families to important decisions with long-ranging consequences. 

You could also achieve business ownership. Owning a business can be particularly rewarding for those willing to commit to it. If you are a natural leader with an entrepreneurial spirit, a life insurance business may be the perfect fit for you. There are also opportunities to bring other people into the industry and help them discover their life insurance career path.

Learn more about the pros and cons of becoming a life insurance agent. 

After getting licensed, you can start building your business with support from the WFG community. You will have opportunities to work with some of WFG’s best, getting the resources and support you need. Our ultimate goal is for everyone to succeed. At WFG, you work for yourself, but never by yourself.

Note: At World Financial Group in Canada, agents are licensed to offer both life insurance and health insurance products, along with other financial services. In the United States, WFG agents primarily focus on life insurance and financial products.
 

FAQS

What’s the difference between a life insurance producer and a life insurance agent?

There is no difference. The two terms are interchangeable, but most consumers are more familiar with the term “agent.”

Do I need a college degree to become a life insurance producer?

No college degree or existing financial background is required to become a life insurance producer. The professional training courses will help you learn what you need to know and pass the exam.

How long is the licensing exam and what score do I need to pass it?

The multiple-choice exam typically takes 2–3 hours to complete. Generally, a score of at least 60% for the LLQP across all provinces and territories in Canada, and at least 70% in the United States is required to pass, although this varies depending on your state or province/territory.

Can I sell insurance in other states once I obtain my license?

Your license only covers you to sell insurance in the state where you live and conduct business. To sell insurance products elsewhere, you will need to complete the process of getting a non-resident license in an additional state or province.

What happens if my license expires?

If your license expires, you will not be able to sell insurance products again until you renew it. You may have to start the whole process over again rather than simply submitting a renewal application. It is best to renew your license well in advance of its expiration. Your state or province will typically have a web portal where you can check your expiration date, CE status and renewal requirements. The issuing entity may or may not email you a reminder in advance of your expiration date.

What insurance license makes the most money?

An insurance producer license may allow you to sell one type of insurance or a range of product types. How much money you earn is based on how you build your business and how much you are able to sell. Agents typically earn a commission on any type of product they sell, and an agent’s job is to tailor their offerings to the consumer’s needs and budget, putting the consumer's needs first.

Ready to begin your career as an insurance agent? Start building your business by joining WFG.

Footnotes

^{1. Becoming licensed also requires this additional cost, paid to the education providers, not WFG. In the United States, we have agreements with several education providers who will charge from $20 - $250 dollars for education depending on the type of course. Exam fees are approximately $100, but can vary by state.}

^{2. The HLLQP Pre-Licensing Bundle, available through the contracted pre-licensing provider, costs $199 plus applicable taxes. This bundle, which includes the Canadian Ethics Course for Life Insurance Agents and Anti-Money Laundering in the Financial Industry, provides all the necessary study materials to write the provincial exam(s) and become licensed with WFG. Exam fees are approximately $100, but can vary by province.} 

^{3. All life licensed agents, no matter what insurance agency they are affiliated with, have a regulatory requirement to hold Errors & Omissions insurance. The premiums can be paid quarterly or annually, and are not refundable. In the United States, New York resident agents must obtain and maintain their own E&O insurance.}

^{4. The Platform Fee is for access to our suite of technology tools that can help you run your business more efficiently and effectively. The initial charge is $15 per month in the U.S., $30 in Canada. This fee increases for individuals who also possess a securities license, as does the amount of tools offered.}

_{In the United States World Financial Group and the WFG logo are registered trademarks of Transamerica Corporation. In Canada, World Financial Group is registered trademark of Transamerica Corporation.}

_{World Financial Group Insurance Agency, LLC, World Financial Group Insurance Agency of Hawaii, Inc., World Financial Group Insurance Agency of Massachusetts, Inc., (In California doing business as World Financial Insurance Agency, LLC) and/or WFG Insurance Agency of Puerto Rico, Inc., collectively WFGIA, offer life insurance products.}

_{Headquarters: 6400 C Street SW, Cedar Rapids, IA 52499. Phone: 770.453.9300}

_{World Financial Group Insurance Agency of Canada Inc. (WFGIAC) offers life insurance and segregated funds.}

_{Headquarters: 5000 Yonge Street, Suite 800, Toronto, ON M2N 7E9. Phone: 416.225.2121}

_{The career opportunity is for an independent contractor who would be compensated by commission. People experience various levels of success with WFGIA and WFGIAC. Individual results may vary.}

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