The profession of selling insurance is both personally and financially rewarding. If you are interested in selling insurance in Texas, you must first get a license before you can start selling.
I have had the privilege of helping countless agents get licensed, and in this article, I will show you what I have found to be the best way to get up and running with your insurance license.
What is the proper license that allows you to sell life and health?
Generally speaking, you will need to get your license in the state where you live. In this article, we are assuming that you are a Texas resident.
There are a few different licenses you can get that each qualifies you to sell different lines of insurance. For example, there are licenses that allow you to sell health insurance or only life insurance.
My recommendation is that if you are going to spend the time, effort, and money to get a license you might as well get the one that gives you the most opportunities. If you only plan to sell life insurance or you only plan to sell health insurance, just get the license that allows you to do both.
There is a good chance you will eventually want to cross-sell later (if that’s not already your goal) so just having the ability to sell both life and health will at the very least make it easier for you to make the jump from life to health or vice versa if you decide to make the leap in the future.
In Texas, you want to get the General Lines – Life, Accident, Health and HMO which is also referred to as a GL-LAH.
Who is Eligible for a General Lines – Life, Accident, Health and HMO?
To be eligible for a General Lines – Life, Accident, Health and HMO license (GL-LAH), you must be:
- At least 18 years of age.
- A resident of the state of Texas.
- Able to legally work in the U.S.
What are the steps to get a license?
We will go into a little more detail on how to do this, and here are the steps you will take to get licensed.
- Double check the state of Texas’s licensing requirements
- Sign up for a pre-licensing course
- Get fingerprints
- Schedule your examination
- Apply for your license
- Pass your exam (hopefully the first time)
Step 1 – Double check Texas’s requirements for licensing
These steps are pretty straightforward. However, the state of Texas may change the official requirements, so it never hurts to check the state licensing website.
You may want to double check if there are any changes to specific vendors that you must use for testing or fingerprinting.
Step 2 – Sign up for the licensing course
The hardest part about getting a license is the test. I won’t sugar coat it. It is not an easy test. The pass rate in Texas is about 60% for first time test takers. Then it drops down to a pass rate of less than 40%
That’s right that the pass drops significantly for those who do not pass the first time.
The good news is that the state of Texas has done studies to show that those who take a pre-licensing course are substantially more likely to pass the first time.
There are a variety of schools that you can use to take the pre-licensing course. Just know that they are not created equal.
Some require you to come to a scheduled class while others allow the convenience and flexibility to take the course on your own time with an online format.
The pass rates also vary greatly between schools. In my opinion, this is most likely a reflection on the quality of the course itself and the company that offers it.
Lately, I have suggested future agents to use the services of License Coach (http://www.licensecoach.com). Their platform has videos, audio, and flashcards and not just dry reading like many of the other companies do. Plus the course is online, and you can complete it on your schedule when it is convenient for you as opposed to having to show up to a set time for a classroom setting.
Helpful hint: If you decide to use License Coach (http://www.licensecoach.com). The folks at licensing coach were nice enough to give readers of this article $10 off by entering coupon code HAA.
Once you get about halfway through the course, then go ahead and schedule steps 3 and 4 to keep the process of getting your license moving along efficiently.
Step 3 – Get fingerprints
Part of the process is to get your license is to get a background check that starts with fingerprinting. Be sure to check to see if your state has a specific vendor that you must use.
I recommend scheduling your fingerprinting early on in the process. Depending availability of fingerprinting appointments, I have seen agents have to wait several days to get fingerprinted, and there is some processing that the state has to do after you get fingerprinted. So it is better to do this fairly early on.
You can schedule your fingerprinting appointment by going to Identogo’s Texas website.
Bottom line, make sure that you get your fingerprints taken early on in the licensing process because you don’t want to hold up your license waiting for the results of a background or even worse having to wait for a time slot to be become available when you have been selling.
Save yourself the trouble and get your fingerprints done early on.
Step 4 – Schedule Your Exam
you are better scheduling the exam sooner. There is typically a two to three week wait to schedule a test date. There is no sense delaying longer than needed. If you are moving along with the class, just get the exam scheduled so it is on the calendar.
My recommendation is to sign up for the exam once your licensing course is about halfway completed. You simple register with Pearson Vue and schedule an exam at a testing center near you.
Once you have scheduled the exam, you can always reschedule if you need more time to complete the course and get some more studying in. Just make sure to check with Pearson Vue on the final date you can reschedule without penalty if you need to reschedule.
Step 5 – Apply for the license
Once you have completed the licensing course, go ahead and register with Vertafore and formally apply for your Texas license.
You can typically a lot of questions on the application that dive deep into your background, criminal history, and any experience you have selling financial products like insurance. Whenever in doubt, be honest and transparent with anything on your background that might raise a red flag (like criminal history or bankruptcy for example).
I have seen a lot more leeway whenever potential agents do disclose issues in their background than if they didn’t disclose something. Chances are that they will find out…
While you are applying, check the requirements at the state licensing website to make sure that you have all of your requirements met.
Step 6 – Pass your test the first time…
The exam is not easy. If you don’t pass the first time, the chances of passing historically drop considerably for repeat test takers. This makes it critical to try to pass the first time.
You will spend a decent amount of money each time you take the test. Plus you will have to wait until the next schedule the test again if you don’t pass. If you have potential clients you can write policies for, you will be delaying the chance to write their business. Plus you might lose them as a client.
My intention is not to scare anyone here. However, I do want to stress that if you put in the work you will give yourself a fighting chance to pass the first time and not have to wait any extra time or spend more money than necessary getting your license.
With that being said, every agent out there has passed the test. It is right of passage so to speak. If they can do it, so can you.
It is not an easy test, but it is not impossible either. Just study hard, take a deep breath, and do your best…
When Does the License Become Official?
You should get your license fairly quickly once you pass the exam. As long as there are no hiccups with the vendors communicating the results of your pre-licensing course, fingerprints, and exam, it should just be a matter of days before you get your license.
You just need to contract with an insurance carrier (called an appointment), and you will selling policies and serving clients in no time.
Plus, sign up for the Health Agent Academy email list to get updates and tips on how to excel in your new insurance career.
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