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

To sell variable life insurance, an agent must be registered with the National Association of Securities Dealers, now called the Financial Industry Regulatory Authority (FINRA). This requirement stems from the nature of variable life insurance products, which combine insurance components with investment options. Because these products involve investment in securities, state insurance licensing alone is not sufficient; agents must also adhere to the regulations governing securities transactions.

Registration with FINRA ensures that agents have met the necessary qualifications and are knowledgeable about the complexities of the investment aspects of variable life insurance policies. They must pass specific examinations, which demonstrate their understanding of the market and the compliance required when selling these types of products. Therefore, being registered with FINRA is a critical step in the process of selling variable life insurance, ensuring both the agent's competence and the protection of consumers.