The Basic Scoop on Life Insurance Continuing Education Credits

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.

There are many different types of continuing education courses. Firm element and regulatory courses include ethics and suitability, prevention of money laundering, securities products, economic topics, and FINRA (Financial Industry Regulatory Authority) rules and regulations. Agents can also take courses in accelerated benefits, annuities, and distribution planning. They can take courses in health and benefits insurance, Medicare and Medicaid, and health savings accounts.

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 agents in all states must complete life insurance continuing education requirements. Agents should research their state’s requirements and their CE provider before signing on for classes. Agents and their companies must make compliance for CE a high priority.

Mississippi Insurance Continuing Education