Insurance Continuing Education Credits and the Insurance Industry
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.
As a result, many companies have begun to add agents to their rolls. Bankers, lawyers, real estate agents, and mortgage brokers are transitioning out of their old careers and into the life insurance industry. These new agents have to face many challenges. Only thirty percent of agents earn more than $35,000 by their second year in the field. By the fourth year, only twenty percent remain at all. By the sixth year, however, those who stay can find themselves earning up to and beyond the $100,000 mark.
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.
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.
Choosing an education provider can be daunting. Agents have to do their own due diligence. A referral from a firm or colleague is helpful. Agents should make sure that the CE provider has experience and a good reputation. They should look for online, live, and textbook courses. The coursework should be approved nationwide and accredited by the state. Some firms reimburse employees for CE, and others require the agent to pay out-of-pocket.
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.
Life insurance continuing education is required by all states. Specific requirements may vary. It is important to research any CE provider before making a commitment. As the industry grows, firms and agents have to make licensure compliance a priority.
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.
As a result, many companies have begun to add agents to their rolls. Bankers, lawyers, real estate agents, and mortgage brokers are transitioning out of their old careers and into the life insurance industry. These new agents have to face many challenges. Only thirty percent of agents earn more than $35,000 by their second year in the field. By the fourth year, only twenty percent remain at all. By the sixth year, however, those who stay can find themselves earning up to and beyond the $100,000 mark.
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.
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.
Choosing an education provider can be daunting. Agents have to do their own due diligence. A referral from a firm or colleague is helpful. Agents should make sure that the CE provider has experience and a good reputation. They should look for online, live, and textbook courses. The coursework should be approved nationwide and accredited by the state. Some firms reimburse employees for CE, and others require the agent to pay out-of-pocket.
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.
Life insurance continuing education is required by all states. Specific requirements may vary. It is important to research any CE provider before making a commitment. As the industry grows, firms and agents have to make licensure compliance a priority.