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.
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.
Agents must do their own due diligence when choosing a CE provider. Referrals from a firm or a colleague can provide some direction. Agents should do research to make sure that the provider has a solid reputation and a lot of experience. Providers should offer textbook, live, and online courses.
Courses should be state-accredited and nationally approved. Some firms will reimburse their agents for CE. Others will expect the agents to pay on their own.
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.
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.
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.
Agents must do their own due diligence when choosing a CE provider. Referrals from a firm or a colleague can provide some direction. Agents should do research to make sure that the provider has a solid reputation and a lot of experience. Providers should offer textbook, live, and online courses.
Courses should be state-accredited and nationally approved. Some firms will reimburse their agents for CE. Others will expect the agents to pay on their own.
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.
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