If you are pursuing a license as a life and health insurance agent, you will need to take and pass your state’s Life & Health Insurance exam.
Click “Start Test” above to take a free Life & Health Insurance Exam practice exam!
Life & Health Cheat Sheet
What’s on the Life & Health Insurance Exam?
The contents of the exam are different depending on the state you take the test in. This includes the number of questions, the time limit, the topics covered, and the overall exam format.
Generally, you will be tested in topics that include HMOs (health maintenance organizations), and health insurance tax issues; annuities and annuity policy tax issues; life insurance plans and general knowledge about the subject; health insurance, dental coverage, medical plans; and more.
Some states’ tests contain 150 questions, while others only contain 50 questions. Some states time their exams at 2.5 hours, while others set the time limit at 1.5 hours. Please check the details of your state to ensure you get the most accurate information for your exam.
Education Requirements
There are no strict education requirements needed in order to take the Life & Health Insurance exam, which means a high school diploma or its equivalent is fine. According to the Bureau of Labor Statistics, about one-third of all agents have at least a bachelor’s degree.
Top 5 Challenging Life & Health Questions
Now that you know more about the exam, try your hand at some targeted practice!
Over the last year, we’ve compiled the data from about 10,000 test-takers who tried their hand at the practice test at the top of this page. According to the data, around 65% of people answered these five questions incorrectly.
Answer each question and read through the answer explanation, whether you got the answer right or wrong. This will help you ensure you’ve got the topic mastered.
Whether you struggled with these questions or aced them on your first try, be sure to take the full practice test to get a better idea of how prepared you really are!
1. Life policies yield dividends, but they are not legal investments. Thus, when an insurance agent reviews expected returns based on historical trends, they are not defined as guarantees but as:
2. Which employer-offered benefit assists new parents by paying day care bills?
3. What does the consideration clause tell the insured?
4. Which is NOT a feature of a universal life policy?
5. On which policy are you least likely to find a living needs rider?
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Life & Health Online Prep Course
If you want to be fully prepared, Mometrix offers an online Life & Health prep course designed to give you everything you need to succeed!
Here’s what you’ll find in the Life & Health course:
- 30+ Review Lessons Covering Every Topic
- Over 400 Life & Health Insurance Practice Questions
- 300+ Digital Flashcards
- Money-back Guarantee
- Mobile Access
Everyone learns differently, so we’ve tailored the Life & Health online prep course to ensure every learner has what they need to prepare for the Life & Health exam.
Click below to check it out!
Test Day
While the day of the test will vary by state, there are some similarities among them.
You’ll need to present a government-issued photo ID. You may be required to present your test confirmation to ensure you’re taking it on the right day and at the right time and location. If there were pre-test requirements, you may be asked to provide proof that you successfully completed them as well.
In general, no electronics (cell phones, tablets, watches, etc.) are prohibited and will have to be locked in a secure area outside the test room. Certain articles of clothing may also be prohibited. In short, it’s a good idea not to bring anything of value to the testing center.
How to Study for the Exam
Start with a Practice Test
Before creating your study schedule, take a Life and Health practice test to establish a starting point. You don’t need to wait until you have reviewed every topic. At this stage, the goal is to identify where your preparation time will have the greatest effect.
Review your results according to the subjects listed in your state’s outline, which may include:
- General Insurance Concepts: Do you understand risk, insurable interest, indemnity, adverse selection, underwriting, premiums, claims, and the characteristics of insurance contracts?
- Life Insurance Policies: Can you distinguish among term, whole life, universal life, variable products, and other policy types?
- Life Policy Provisions and Riders: Do you understand beneficiaries, settlement options, nonforfeiture values, loans, exclusions, reinstatement, grace periods, incontestability, and common riders?
- Annuities and Retirement Products: Can you distinguish immediate and deferred annuities, fixed and variable contracts, accumulation and annuitization, and common payout options?
- Health and Accident Insurance: Do you understand medical-expense coverage, disability income, long-term care, limited-benefit plans, and other health products listed in your outline?
- Group Insurance and Government Programs: Can you apply rules involving group coverage, continuation, Medicare, Medicaid, Social Security, or other programs included on your exam?
- Applications, Underwriting, and Policy Delivery: Do you understand producer responsibilities, required disclosures, premium collection, conditional receipts, medical information, policy delivery, and replacement?
- State Laws and Regulations: Do you know your jurisdiction’s licensing rules, prohibited practices, advertising requirements, fiduciary responsibilities, consumer protections, replacement procedures, and disciplinary provisions?
Identifying those specific weaknesses will show you where to devote more attention during your study time.
Review Difficult Questions
After each practice session, review every question you answered incorrectly AND every question you guessed on or answered with low confidence. A correct guess does not demonstrate that you understand the policy, regulation, or producer responsibility being tested.
For each difficult question, determine which of the following caused the problem:
- You did not understand the insurance term or principle.
- You confused two similar policies, riders, provisions, or benefits.
- You understood the product but misapplied it to the client’s situation.
- You overlooked an exclusion, waiting period, limitation, or eligibility requirement.
- You confused the policyowner, insured, beneficiary, annuitant, and insurer.
- You misunderstood when coverage begins.
- You confused a general insurance principle with a state-specific rule.
- You selected an action that would violate a producer’s legal or ethical responsibilities.
- You tried to answer from common sense instead of applying the contract or regulation.
Then, outline a specific plan for improvement based on what you discovered. In other words, don’t just say, “I need to study policies.” Record that you need to compare term insurance with whole life, review how universal-life premiums affect cash value, or distinguish revocable from irrevocable beneficiaries.
Similarly, replace “review state law” with a specific action such as learning your state’s replacement requirements, prohibited sales practices, license-renewal rules, or time limits for handling premiums and claims.
Utilize Answer Explanations
Answer explanations are an underutilized studying resource. To take full advantage of them, read the explanation for every question you found difficult, including questions you answered correctly.
For each one, make sure you can confidently explain:
- Why the correct answer is correct
- Why each incorrect option is wrong
- What rule, concept, or skill is being tested
- Which facts in the scenario control the answer
- Whether the rule is generally applicable or specific to your state
- How the same skill might appear in a different question
For product questions, compare the complete characteristics of the available options rather than memorizing one definition.
For policy-provision questions, trace the contract through the complete situation. Determine what happens when a premium is missed, a beneficiary dies, a policy is surrendered, coverage is reinstated, a claim is filed, or information on an application is incorrect.
Study Insurance Relationships, Not Individual Questions
Memorizing the answer to one licensing question will not prepare you for another question that changes the applicant, policyowner, beneficiary, premium arrangement, product, or state requirement.
For example, don’t just memorize that term insurance provides temporary coverage. Compare level, decreasing, and renewable or convertible term policies and determine why each might be used.
Similarly, understand the difference between the accumulation and annuitization periods, the roles of the owner and annuitant, fixed and variable values, immediate and deferred contracts, and the consequences of different payout options.
The exact questions on your test will be different from the ones you encounter during practice. If you can explain a skill without looking at your notes and then apply it correctly to a new question, that is a good indication that you have mastered it.
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FAQs
Q
Are all Life and Health Insurance exams the same?
A
No, tests vary by state. It’s important to check the regulations in your area.
Q
What type of skills do I need?
A
Since insurance agents determine the needs of their clients, excellent analytical skills are a big plus. Insurance agents regularly talk with clients, you’ll need to be a very skilled communicator. You need to be self-confident and be willing to take the initiative since you’ll be seeking out new clients.
Q
What does the application process for the test entail?
A
In general, you’ll have to provide background information, like employment history, and personal information, such as a picture ID. Some states have other requirements, such as requiring a background and fingerprint check.
Q
How many questions are on the test?
A
The number of questions on the test, the format, and the length of time it takes all vary by state.
Q
What does it cost to take the test?
A
Fees vary by state, so please check in your area.
Q
When will I know if I passed?
A
Depending on the state, you could know as soon as the test is over.
Q
Are insurance agents in demand?
A
BLS projects employment for insurance sales agents to grow 4% from 2024 to 2034.
Mometrix Test Preparation is not affiliated with or endorsed by any official testing organization. All organizational and test names are trademarks of their respective owners.
