- Insurance companies that provide a life insurance policy typically employ captive agents or use independent insurance agents to sell their products. Insurance agents or agency employees are required to possess a life insurance license.
- Individuals who sell life insurance are required to be licensed in their state of residence to sell insurance products. Most state requirements consist of paying a licensing fee and then taking a state administered exam. Individuals who pass the exam will receive a license to sell insurance products in the state. Some states have a combined license exam or a separate exams for life insurance and property and casualty insurance.
- Term life policies provide coverage for specific periods depending on the policy type. Term length typically include periods of 10, 20 and up to 30 years. Individuals usually pay less for this type of life insurance because the term is limited and only the death benefits are paid. Term policies can also be guaranteed to be renewable when the policy term expires.
- The most common type of permanent life insurance is a whole life or universal life policy. These types of polices provide coverage until the death of the policy owner. Permanent life insurance also includes a cash value that accumulates with each premium payment. This type of insurance can also be used as an alternative investment option.
- Individuals or even life insurance agents who need to determine the proper amount of needed coveragemay use a life insurance needs calculator. These types of calculators use various factors such as an individual's expenses and any outstanding debts. This and other information is then used to calculate how much coverage is needed for immediate obligations and the amount of income required by a household.