What is required for an insurance agent to sell variable life insurance?

To sell variable life insurance, an insurance agent is required to obtain a securities license. This is because variable life insurance products are considered both insurance products and investment products. They provide a death benefit similar to traditional life insurance, but they also include investment components that can fluctuate in value based on the performance of underlying investments such as stocks or bonds.

The requirement for a securities license is crucial because selling these types of policies involves not only insurance knowledge but also an understanding of financial markets and investment risks. Agents must comply with regulations set by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which govern the sale of securities products, including variable life insurance.

Other types of insurance licenses—such as those for health, property, or long-term care—do not encompass the regulatory requirements necessary for selling products that have investment considerations. These licenses serve specific areas of insurance but do not qualify an agent for the sale of variable life insurance. This highlights the importance of having the securities license in the context of variable life products.