What licenses are required for producers selling variable life products?

To sell variable life insurance products, a producer must hold both a life insurance license and a securities license. The reason for this requirement lies in the nature of variable life insurance products, which combine elements of both life insurance and investment.

Variable life insurance policies contain components that are linked to market performance, allowing the policy's cash value and death benefits to fluctuate based on investments in various securities, such as stocks and bonds. Because of this investment component, federal and state regulations require that producers be licensed to sell securities, in addition to having the necessary qualifications to sell life insurance.

In summary, the dual licensing ensures that producers are knowledgeable about both life insurance products and the investment aspects that variable life policies entail, enabling them to provide clients with comprehensive and regulated financial advice regarding their insurance and investment opportunities.