If you are aspiring to work as a life insurance agent, then acquiring a life insurance license is a crucial step. However, the life insurance license cost by state varies significantly in the U.S. In this guide, where we will provide a state-by-state breakdown of life insurance license costs in 2024.
By examining the specific fees in different states, we aim to highlight any unique aspects or significant variations that you should be aware of. Likewise, comparing and analyzing the costs across states can help you identify patterns and trends, ultimately enabling you to make informed decisions regarding your licensing journey.
The foundation of the cost structure for obtaining a life insurance license are the licensing requirements of individual states. The state insurance department sets its own criteria, such as pre-licensing education, exams, background checks, and processing fees. These requirements also ensure that you are well-versed in the complexities of the insurance industry.
| State | Life Insurance License Application Cost | Pre-License Course | Life Insurance Licensing Exam |
| Alabama | $80 | $149+ | $50 |
| Alaska | $75 | $149+ | $89 |
| Arizona | $120 | $149+ | $35 |
Please note that the pre-licensing course fee can vary based on the hours required by your state and the mode of taking the course. Additionally, you can expect a $5.60 NIPR fee in most states. You also need to bear the cost of fingerprint and background check, which vary by state.
Besides upfront costs, it is crucial to consider the future financial commitments associated with holding a life insurance license. You need to consider the license renewal fees, continuing education requirements, and other maintenance costs that may vary from state to state.
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Based on our list, the lowest life insurance license application cost is $10 in Michigan, and the highest cost is $225 in Massachusetts.
New York has lower licensing fees compared to Florida. The licensing fee for life insurance agents in New York is around $40, whereas in Florida, it is $50.
California generally has higher licensing fees compared to Texas. The application fee for a life insurance license in California often exceeds $150, while the fee in Texas is relatively lower, around $50.
Illinois is one of the most expensive states to get a life insurance license where the application fee stands at $215. On the other hand, in Pennsylvania, the cost is approximately $55.
North Carolina and Georgia have similar licensing fees, but Georgia’s cost is slightly higher. The licensing fee for a resident life insurance license in Georgia has historically been around $120, while in North Carolina, it is approximately $100.
Know about Non-Resident Insurance Licenses
| State | Resident Life Insurance License Application Cost | Pre-License Course | Life Insurance Licensing Exam | Total Estimated Cost |
|---|---|---|---|---|
| California | $188 | $149+ | $121 | $458+ |
| Illinois | $215 | $149+ | $92 | $456+ |
| New Hampshire | $215 | $149+ | $50 | $414+ |
| Massachusetts | $225 | $149+ | $39 | $413+ |
| Nevada | $185 | $149+ | $39 | $373+ |
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| State | Resident Life Insurance License Application Cost | Pre-License Course | Life Insurance Licensing Exam | Total Estimated Cost |
|---|---|---|---|---|
| Arkansas | $15 | $149+ | $50 | $214+ |
| Montana | 0 | $149+ | $59 | $208+ |
| Ohio | $15 | $149+ | $42 | $206+ |
| Michigan | $10 | $149+ | $41 | $200+ |
| Virginia | $15 | $149+ | $35 | $199+ |
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Understanding the cost of obtaining a life insurance license is an integral part of planning your insurance career. By exploring the variations and factors affecting these costs, you can make well-informed decisions and effectively manage your finances. So, there are resources to help you browse real-time data and collect information on life insurance license costs:
Understanding the costs involved in obtaining and maintaining a life insurance license is essential for aspiring agents, with fees varying by license type and role. For example, an Intermediary Individual (Producer/Agent) pays $75 per line of authority for the initial license, plus a $10 resident application fee, with biennial renewals costing $35 for residents and $70 for nonresidents. Additionally, a Temporary Intermediary License costs $75 per line of authority, available to designated representatives in specific situations like disability, death, or active military duty.
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