The Four Components of a Life Insurance License
Getting a life insurance license in any U.S. state involves the same four cost categories, though the dollar amounts vary significantly by state. Understanding each one before you start prevents surprises.
Most states require a set number of study hours before you can sit for the licensing exam. Hours vary by state and line of authority (life-only vs. life and health combined). Courses are available online, in person, or as self-study materials. Providers include Kaplan, ExamFX, and state-specific vendors. This is the one cost category where a sponsoring agency may help.
Paid to your state's designated exam vendor (usually Pearson VUE or PSI). You pay this each time you sit for the exam — if you don't pass and need a retake, you pay again. This fee goes directly to the state or its vendor; no agency can waive it on your behalf.
Required in most states before a license can be issued. Usually submitted through the state's designated fingerprinting vendor (often IdentoGO or a similar national service). This fee also goes to the state or its vendor — not to the agency.
The fee to submit your license application after passing the exam. Some states charge this separately; others bundle it with the exam fee. Paid at the time of application through the state DOI or NIPR.
State-by-State Fee Reference
Verify before you register: State fees change. The figures below reflect published rates as of early 2026 and are provided for reference only. Always confirm current amounts at your state's Department of Insurance website or NIPR.com before paying.
| State | Pre-Lic. Hours | Exam Fee (approx.) | License App. Fee (approx.) | Fingerprint Fee (approx.) |
|---|---|---|---|---|
| Alabama | 20 hrs | $62 | $100 | $50 |
| Arizona | 0 hrs (exam only) | $75 | $60 | $22 |
| Florida | 40 hrs | $54 | $75 | $54 |
| Georgia | 40 hrs | $63 | $60 | $52 |
| Illinois | 20 hrs | $82 | $60 | $0 (waived for L&H) |
| Indiana | 40 hrs | $72 | $40 | $54 |
| Kentucky | 20 hrs | $50 | $60 | $36 |
| Michigan | 20 hrs | $79 | $10 | $52 |
| Missouri | 0 hrs (exam only) | $74 | $30 | $46 |
| North Carolina | 20 hrs | $68 | $45 | $38 |
| Ohio | 20 hrs | $80 | $65 | $52 |
| Pennsylvania | 24 hrs | $65 | $55 | $22 |
| South Carolina | 20 hrs | $63 | $60 | $52 |
| Tennessee | 20 hrs | $67 | $60 | $36 |
| Texas | 40 hrs | $64 | $50 | $38 |
| Virginia | 30 hrs | $65 | $30 | $52 |
| West Virginia | 20 hrs | $74 | $60 | $50 |
Exam fees are for a combined Life & Health exam where applicable. Some states use a separate Life-Only exam at a different fee. Fingerprint fees are for the most common vendor in each state. Course hours shown are for a Life and Health combined license. All figures approximate and subject to change — verify at your state DOI or NIPR.com.
What Agencies Can (and Can't) Cover
A recruiting agency can offer to cover your pre-licensing education course cost — that's a transaction between you and a course vendor, and an agency can pay that vendor directly or reimburse you. At United Trust Life, we cover 75% of your pre-licensing course upfront.
What we cover: We cover 75% of your pre-licensing course upfront. You cover the state exam fee, fingerprinting, and application — those go to the state, not to us. Those costs range from roughly $100–$250 depending on your state, and they are your direct responsibility regardless of which agency you work with.
No agency can waive state exam fees, fingerprint fees, or DOI application fees on your behalf — those go directly to state vendors and government agencies. Be skeptical of any recruiter who says your licensing is "completely free" or "we pay for everything." The state fees will always be yours to cover.
Some agencies also offer to reimburse state fees after you're licensed and have written your first policy. That's a different arrangement — ask about timing, conditions, and what happens if you leave before meeting the condition.
Recurring Costs After You're Licensed
Licensing isn't a one-time event. Plan for these recurring costs once you're active:
- License renewal: Most states renew every 2 years. Renewal fees typically range from $20 to $150 depending on state.
- Continuing education (CE): Most states require 24 credit hours per 2-year cycle for Life and Health. CE courses typically cost $50–$200 per renewal cycle through online providers.
- E&O insurance: Errors and Omissions coverage is generally required or strongly advised. Annual premiums vary by coverage amount and state.
- Additional state licenses: Each additional state where you want to write business requires its own application (and fee), though resident licenses typically cost more than non-resident licenses.
Does the License Pay for Itself?
The license cost question is really a question about ROI — does the investment of time and money to get licensed make sense for your situation?
The honest answer is: it depends on factors beyond the license cost. It depends on whether you work with an agency that supports new agents, whether the product and market fit your skills, whether you can sustain yourself financially during the ramp-up period, and whether you're in a geographic area with demand. For a frank look at how commission actually works once you're licensed, see: What Selling Life Insurance Actually Pays: Commission Per Policy, Advances, Renewals, and Chargebacks.
For a broader look at whether selling life insurance is the right career path in the first place, see: Is Selling Life Insurance a Good Career?
If you want to understand how United Trust Life handles the licensing process, what we cover, and what the opportunity looks like in your state, the conversation starts at our career application page.
Disclosure: This article was written by a field sales trainer at United Trust Life, a life insurance sales agency that recruits and sponsors agents. The state fee data above is approximate and may have changed since publication — always verify at your state DOI or NIPR.com. This is not insurance, financial, or tax advice; contact a licensed professional for guidance specific to your situation.