How to Get an Insurance License: A Step-by-Step Guide

If you’re thinking about becoming an insurance agent, you’re probably wondering how to get an insurance license, how long the process takes, and what steps are involved. The good news? Getting an insurance license is much faster than many other career paths that require professional certification. In most cases, you can complete the process and start working in just a few weeks! One of the biggest advantages of pursuing this career is that you don’t need a college degree. This makes it an accessible and attractive option for individuals looking to enter a stable and rewarding industry without spending years in school. Whether you're a recent graduate, someone seeking a career change, or a professional looking to expand your expertise, getting licensed as an insurance agent can open doors to new opportunities. So, how long does it take to get an insurance license? While the timeline varies by state, most candidates can complete the required pre-licensing coursework and pass the state licensing exam within a few weeks to a couple of months. The process typically involves meeting state requirements, completing a pre-licensing course, scheduling and passing the exam, and applying for the license itself. Another common concern is how much does it cost to get an insurance license. The total cost depends on your state’s requirements, the type of insurance you plan to sell, and whether you take in-person or online courses. Generally, you can expect to pay between $200 and $500, which includes pre-licensing education, exam fees, and the license application. Whether you’re new to the field or considering a career switch, this guide will walk you through everything you need to know. From choosing the type of insurance you want to sell to preparing for and passing your state’s licensing exam, we’ve got you covered. Also read: Is Hirey legit? Here's what you need to know Step 1: Decide What Kind of Insurance Agent You Want to Be Before you start, you need to figure out what type of insurance agent you want to be. There are two main categories: captive agents and independent agents. Each comes with its own perks and challenges, so it’s important to choose wisely. Captive Insurance Agent A captive agent works exclusively for one insurance company, meaning you can only sell that company’s policies. The upside? You get access to solid training, marketing support, and brand recognition from a well-known insurer. The downside? You can’t offer clients policies from other companies, which could limit your earning potential. Most captive agents also have to sign a non-compete agreement, meaning you can’t switch to another company easily. Also, since the insurance company provides marketing and training, your commission rates might be lower compared to independent agents. Independent Insurance Agent An independent agent, on the other hand, gets to work with multiple insurance companies. This means you have the flexibility to offer clients different policy options, allowing you to tailor coverage to their exact needs. The catch? You won’t get the same level of training or support from insurers, and you'll have to put more effort into marketing yourself. Going independent means you’ll need to hustle a bit more to build your reputation and client base. But if you're someone who loves the idea of being your own boss and having more control over what you sell, this could be the better option for you. Step 2: Choose Which Insurance Products to Sell The insurance world is pretty vast, and there are a ton of different products you can specialize in. Your choice will determine what kind of clients you'll work with and what type of license you need. Here are the two main categories: Commercial Insurance: This covers businesses, offering policies like general liability, commercial property insurance, and errors & omissions (E&O) coverage. If you’re interested in working with business owners and helping them protect their companies, this could be a great niche. Personal Insurance: This includes insurance for individuals and families, such as auto, home, life, and health insurance. If you enjoy working one-on-one with people to help them protect their personal assets, this might be the better fit. Some agents choose to focus on one area, while others sell multiple types of insurance. The more licenses you have, the more products you can offer—but keep in mind that each type of insurance may require additional certifications. Step 3: Understand Your State’s Licensing Requirements Every state has different rules about getting an insurance license, so you’ll need to check the specific requirements where you live. However, most states offer two common types of insurance licenses: Property and Casualty (P&C) License: This is required if you want to sell policies like home, auto, or business insurance. Life, Accident, and Health (LA&H) License: This is required if you want to sell life insurance, health insurance, or annuities. Depending on your career goals, you may need multiple licenses. You might also need an adjuster or producer license if you plan to work in claims handling. The best way to figure this out is to check with your state’s Department of Insurance or the company you want to work for. Also read: In the increasingly complex world of hiring platforms, here's why customers chose Hirey Step 4: Meet the Basic Eligibility Requirements Before you start the licensing process, make sure you meet your state’s basic requirements. While each state has its own rules, most require that you: Be at least 18 years old. Have a clean criminal record (no fraud or felony charges). Be up to date on taxes and child support payments (some states check this!). Pass a background check. If you meet these requirements, you’re good to go! Step 5: Complete Pre-Licensing Education Before you can sit for the insurance licensing exam, most states require you to complete a pre-licensing education course. These courses are designed to provide you with a solid foundation in insurance principles, state laws, and ethical responsibilities. Depending on your state’s requirements, you may need to complete a specific number of study hours before becoming eligible for the exam. What You’ll Learn in Pre-Licensing Courses Your coursework will cover a range of essential topics, including: Insurance Policies and Coverage Options – Understanding the differences between life, health, auto, home, and other insurance products. Ethics and Professional Conduct – Learning the legal and ethical obligations of an insurance agent, including how to serve clients responsibly. State and Federal Insurance Regulations – Familiarizing yourself with state-specific laws, consumer protection rules, and regulatory compliance requirements. General Insurance Principles – Grasping fundamental concepts like risk management, underwriting, claims processing, and policy structures. Course Formats and Time Commitment You can take pre-licensing courses in two main formats: Online courses – Flexible and self-paced, ideal for individuals balancing work or other responsibilities. Classroom courses – Instructor-led sessions that provide structure and real-time interaction. The number of required study hours varies by state, typically ranging from 20 to 40 hours per line of authority (such as Life & Health or Property & Casualty). While some candidates complete the coursework in just a few days, others may take several weeks, depending on their schedule and pace. Exemptions for Designation Holders If you already hold a professional insurance designation, such as: Chartered Life Underwriter (CLU) Chartered Property Casualty Underwriter (CPCU) You may be eligible for coursework exemptions in some states. Be sure to check with your state’s Department of Insurance to see if your designation allows you to bypass certain pre-licensing requirements. Also read: App reviews can be manufactured and misleading. Here's what legit users have to say about Hirey. Step 6: Pass Your Insurance Licensing Exam Once you’ve completed your pre-licensing education, the next step is to pass your state’s insurance licensing exam. The exam is designed to test your understanding of key insurance concepts, industry regulations, and ethical responsibilities. What to Expect on Exam Day Types of Exams – Most states divide the licensing exam into two major categories: Life & Health (L&H) – Covers life insurance, health policies, annuities, and disability insurance. Property & Casualty (P&C) – Focuses on home, auto, commercial, and liability insurance. Number of Questions – Exams typically include 50 to 200 multiple-choice questions, depending on the license type. Time Limit – You’ll have 2 to 3 hours to complete the test. Passing Score – Most states require a minimum score of 70% to pass. Proctored Exam – The test is supervised, and you’ll take it at an official testing center or via an online proctoring service. Tips for Passing the Exam Review the Exam Outline – Each state provides an exam content outline, so focus your studies on key areas that will be tested. Take Practice Exams – Mock exams help you get familiar with the question format and identify areas where you need more study time. Use Study Guides and Flashcards – Breaking down complex topics into smaller chunks can make studying more effective. Get Plenty of Rest Before the Exam – Being well-rested helps with focus and retention. What Happens If You Fail? If you don’t pass the exam on your first attempt, don’t get discouraged! Many states allow unlimited retakes, but you’ll have to wait a designated period (usually a few days) before scheduling another attempt. You will also need to pay the exam fee again, which typically ranges from $40 to $150 depending on the state. Step 7: Apply for Your Insurance License Once you’ve passed your exam, congratulations—you’re now ready to apply for your official insurance license! This is the final step before you can start legally selling insurance. How to Apply for Your License To submit your application, you’ll need to: Complete the Licensing Application – Apply online through your state’s Department of Insurance website or an approved third-party service. Pay the Licensing Fee – Costs vary by state and type of license but typically range from $50 to $300. Undergo a Background Check – Many states require fingerprinting and a background check to ensure applicants meet ethical and legal standards. How Long Does It Take to Get Approved? The time it takes for your application to be processed depends on your state, but generally, you can expect to receive your license within a few days to a few weeks. Some states offer expedited processing for an additional fee. Accessing Your License Once approved, you can typically download and print your license online through your state’s insurance portal. Be sure to keep a copy on hand and check for any renewal requirements to maintain your active status. With your license in hand, you’re officially an insurance agent and ready to start your career! Whether you choose to work for an agency, go independent, or specialize in a particular insurance type, the opportunities are endless. Step 8: Maintain Your License with Continuing Education Getting your license isn’t the end of the road! Most states require insurance agents to complete continuing education (CE) credits to keep their license active. Typically, you’ll need: 24 hours of CE credits every two years. 3 of those hours must be focused on ethics training. CE courses help you stay updated on industry trends, new regulations, and best practices. Whether you’re new to the field or considering a career switch, this guide will walk you through everything you need to know. From choosing the type of insurance you want to sell to preparing for and passing your state’s licensing exam, we’ve got you covered. Becoming a licensed insurance agent can be a smart career move, offering flexibility, job stability, and significant income potential. Whether you choose to work for an established agency, start your own business, or specialize in a niche market, the opportunities in the insurance industry are vast. Plus, with a relatively quick and affordable licensing process compared to other professions, you can start earning sooner rather than later. The key to success in this field is preparation. By understanding your state’s requirements, completing the necessary coursework, and studying for your exam, you’ll be well on your way to launching a successful insurance career. If you’re ready to take the next step, explore pre-licensing courses, connect with industry professionals, and start your journey toward becoming a licensed insurance agent today! Also read: How to become an Independent Insurance Agent