Life Insurance Exam information
What it is, what's tested, and how it's scored.
Life Insurance exam summary
Most Life Insurance exam content is the same across tests in the U.S. There is typically a small amount that varies by state due to state-specific rules and regulations, all of which are covered in our course. Below are the typical topics that will be covered during the Life Insurance exam:
1. Insurance Regulation
Typically the first and lengthiest part of the exam. It emphasizes the need for insurers to adhere to fair business practices, covering both state and federal regulation along with various facets of insurance sales including licensing, marketing, and record keeping.
2. General Insurance
Concepts that apply to all kinds of insurance are covered in this section, including risk management, legal contracts, and insurer types.
3. Life Insurance Basics
Goes over foundational concepts such as settlements, personal and business uses of life insurance, and policy classes.
4. Life Insurance Policies
This section goes deeper into life insurance policies by discussing types of specialized or flexible premium policies as well as group plans.
5. Life Insurance Policy Provisions, Options, and Riders
The second-largest portion of the life insurance exam. It covers standard provisions, beneficiaries, and disability riders in detail, along with settlement, nonforfeiture, dividend, policy loan, and withdrawal options.
6. Annuities
Discusses different annuity principles, concepts, products, uses, and payment options.
7. Federal Tax Considerations for Life Insurance and Annuities
Covers taxation of personal life insurance, non-qualified annuities, and individual retirement annuities (IRAs).
8. Qualified Plans
A small section of the Life Insurance Exam, often taking up less than 5% of the exam's contents. It covers three subtopics: general requirements, federal tax considerations, and plan types, characteristics, and purchasers.
The exam is typically between two and three hours and has around 50 to 100 questions. For state-specific exam information, please visit our insurance licensing database.
Achievable Life Insurance content outline
1
General insurance concepts
An overview of foundational concepts essential to understanding the insurance industry. Risk management principles, sources of insurance, different insurance marketing systems, the authority of producers, insurance contracts, and the legal principles governing them.
2
Producer roles and receipt types
An introduction to what an insurance producer is responsible for, including law of agency, fiduciary duty, and types of receipt.
3
Principles of life insurance
This chapter covers the different types of life insurance, personal and business applications of life insurance, and different ways to value a human life.
4
Underwriting
The role of the insurance underwriter. Different sources of underwriting information, how premiums are determined, and what it means to "rate" an insurance policy.
5
Term life insurance
An introduction to the key differences between Term and Permanent life insurance, followed by an exploration of the most common (testable) types of term insurance products.
6
Whole life insurance
Exploring the different features of permanent or "whole" life insurance, including cash value, illustrations, policy loans, maturation, and the Modified Endowment Contract.
7
Variable insurance products
An "exam focused" look at the five key differences between fixed and variable life insurance products.
8
Group life insurance
Important group life insurance concepts like multiple employer trusts, underwriting considerations, conversion privileges, and participation percentages.
9
Life insurance provisions
This chapter covers policy ownership and assignment, beneficiaries, and endorsements. It also delves into Dividend, settlement, and non-forfeiture options.
10
Annuities
In this chapter, you will learn the differences between single premium and continuous pay and between immediate and deferred annuities. We also discuss the annuitization process and the available payout options.
11
Taxation of life insurance products
This chapter outlines the tax treatment of life insurance and annuities, including premiums, cash accumulation, withdrawals, and policy loans.
12
Qualified retirement plans
When discussing the merits of annuities and cash value life insurance with your clients, it is important to understand what other vehicles are available for retirement planning.
Pass the Life Insurance exam.
Guaranteed.Achievable is the best Life Insurance exam prep course: effective, personalized, and convenient. With Achievable, you'll spend less time studying and pass your exam the first time, or your money back.