The life insurance business is booming. According to recently-released statistics, the aggregate value of the United States's outstanding life insurance policies totals nearly $20 million and continues to rise with each passing year. As the country's population ages, more and more middle-class consumers are discovering the value of term life insurance. This has led to tremendous recruiting drives at the nation's major life insurers and contributed to the creation of tens of thousands of new jobs over the past decade. Although certain older, independently wealthy consumers don't need life insurance, it's doubtful that everyone who needs life insurance coverage currently has a policy. By some estimates, just half of the country's families are protected by this type of safety net.
In light of the central role that life insurance plays in the American financial industry, it should be no surprise that every state requires insurance agents to become licensed. The licensing exams that control the issuance of these credentials are drawn up and administered without any guidance from the federal government. As such, these tests can vary dramatically from jurisdiction to jurisdiction.
Whereas some states' life insurance exams are considered to be routine, other exams have first-time "pass rates" of less than 50 percent. Although these difficult tests serve to discourage plenty of prospective life insurance agents, they also ensure that those who pass will be well-prepared to work in the increasingly competitive life insurance industry. Difficult tests also ensure that newly-minted agents are competent and fully cognizant of the implications of their work.
If you're hoping to obtain a license to sell life insurance in Texas, you'll need to prepare for the state's exam by purchasing study materials and taking a preparatory course. While the Texas Insurance Exam isn't regarded as the nation's most difficult, it's a comprehensive assessment that can punish unprepared test-takers. It also covers a wide range of issues that aren't directly related to life insurance. Before you take the exam, you'll need to know the ins and outs of health, homeowners and auto insurance. If you concentrate only on the life insurance portion of the exam, it's unlikely that you'll pass.
If you're worried about receiving a passing grade on the test, take a practice exam several weeks beforehand. A practice-exam score of 90 percent or higher generally indicates mastery of the subject material. If your score is lower than 90 percent, you'll need to assess your weaknesses and continue to study.