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.
There has been resurgence in this field since the 2008's economic slowdown. Before 2008, many companies were not actively recruiting new agents. They depended instead upon the internet, banks, financial advisers, and stockbrokers for sales. These painted whole life policies as inferior products. Clients were advised to purchase a cheap term policy and invest their savings in the stock market. The tables turned, however, when the stock market plunged. The inferior whole life policies retained value while other investments tanked.
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 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.
There has been resurgence in this field since the 2008's economic slowdown. Before 2008, many companies were not actively recruiting new agents. They depended instead upon the internet, banks, financial advisers, and stockbrokers for sales. These painted whole life policies as inferior products. Clients were advised to purchase a cheap term policy and invest their savings in the stock market. The tables turned, however, when the stock market plunged. The inferior whole life policies retained value while other investments tanked.
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 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.
The Communication Blog
No comments:
Post a Comment