Are you interested in a career in the insurance industry? Obtaining the right license is an important part of the process. Depending on your role and specialization, there are various types of insurance licenses you can obtain. This blog post will provide an overview of the different types of insurance licenses and how to go about obtaining them.
What Insurance License Pays the Most?
Insurance License Pay:
There are many different types of insurance licenses, each with its own earning potential. Some of the highest paying insurance licenses include:
Life and Health Insurance License: A life and health insurance license allow an individual to sell life and health insurance policies. The median salary for a life and health insurance agent is $48,200 per year, with the top 10% earning over $125,000 per year.
Property and Casualty Insurance License: A property and casualty insurance license allow an individual to sell property and casualty insurance policies, which include auto, home, and business insurance. The median salary for a property and casualty insurance agent is $48,200 per year, with the top 10% earning over $125,000 per year.
Chartered Property Casualty Underwriter (CPCU): The CPCU is a professional designation for those working in the property and casualty insurance industry. The median salary for a CPCU is $91,600 per year, with the top 10% earning over $150,000 per year.
Certified Financial Planner (CFP): CFP is a professional designation for those working in the financial planning and advice industry. The median salary for a CFP is $89,160 per year, with the top 10% earning over $200,000 per year.
Chartered Life Underwriter (CLU): The CLU is a professional designation for those working in the life insurance industry. The median salary for a CLU is $89,160 per year, with the top 10% earning over $150,000 per year.
Types of Insurance Licenses
Life/Health Insurance License – A life/health insurance license allows you to sell life and health insurance policies. In order to obtain this license, you must complete pre-licensing courses and pass a state exam. Once you have obtained the license, you may also be required to complete continuing education courses on an annual basis.
Property/Casualty Insurance License – A property/casualty insurance license allows you to sell property and casualty insurance policies. Like life/ health insurance licensing, this type of license requires pre-licensing coursework as well as passing a state exam. You may also be required to complete continuing education courses every year once you have obtained this license.
Adjuster License – An adjuster license allows you to represent companies when handling claims for losses due to property damage or personal injury claims arising from accidents or other events resulting in damages or losses covered by an insurance policy. In order to obtain this type of license, individuals must pass a written state exam as well as complete pre-licensing coursework related specifically to adjusting policies.
Agent’s Representative (AR) License – An Agent’s Representative (AR) License allows individuals who are already licensed with one type of insurance (e.g., Life/Health) or multiple types of insurance (e.g., Property & Casualty) to process transactions for another line of business within their agency without having to become fully licensed in that line of business themselves.
In order to qualify for an AR License, individuals must meet certain educational requirements depending on their state’s regulations and pass a written state examination specific to the type of service they are providing through the agency for which they are seeking to license in addition to any applicable fees associated with obtaining such a certificate or permit from their respective State Department.
No matter what type of career path you choose within the realm of the insurance industry, it is important that you understand which type of licenses are necessary in order for you to conduct business within your chosen field. With so many different types available, it is easy to get confused when it comes time to apply for your license. Do your research ahead of time and make sure that all necessary steps are completed prior to applying so that nothing stands between achieving success.