Life Insurance Continuing Education Credits
Life insurance agents play many roles in today’s business environment. They have their traditional role of selling policies that pay a death benefit. They also have many other skills. Those skills include pension plan set-up, estate planning, and retirement planning. All states require life insurance continuing education credits for bi-annual license renewal. CE is key to maintaining and building agent skills.
This particular industry has seen resurgence since the economic recession. Many companies downsized agents prior to the slowdown. They relied on financial advisers, stockbrokers, banks, and the internet for sales. Whole life policies were touted as unattractive products. Many financial planners advised clients to purchase cheap term policies. They suggested investing the money that clients saved in the stock market. When the stock market plummeted, however, those “unattractive” whole life policies retained their 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.
Firms looking to push many agents through CE should take some extra steps. The most important is to make sure that the provider offers a wide variety of courses, and that the courses cover all of the services that the firm offers. This means checking for CPA, CIMA, ChFC, CFP, and CLU offerings. Small firms should seek out a local government compliance officer. Large firms should hire a compliance specialist with Series 7, 24, and 63 licensure.
All states set and maintaining life insurance continuing education requirements. These requirements are different from state to state. Therefore, it is important to do due diligence before committing to a CE provider. In a growing industry, licensure compliance and continuing education are major priorities.
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Tags: business, continuing education, education, finance, Insurance, life insurance, online education