STUDY GUIDE

Life and Health Insurance Exam Study Guide, your complete preparation resource

The Life and Health Insurance Exam is a crucial step for anyone looking to start a career in insurance. It tests your knowledge of both life insurance policies and health insurance plans, as well as state-specific regulations and ethical standards. We built this guide to help you prepare effectively and pass on your first attempt.

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By David Racich, Owner and CEO of Brokers Alliance Updated July 2025

01 · OVERVIEW

Overview of the exam

The Life and Health Insurance Exam is a licensing exam required for individuals looking to sell life and health insurance policies. It consists of multiple-choice questions designed to assess your understanding across five core areas.

LI Life Insurance Policies

Understand the different types of life insurance policies, including term life, whole life, universal life, and variable life.

HP Health Insurance Plans

Learn about major medical insurance, health maintenance organizations (HMOs), preferred provider organizations (PPOs), and high deductible health plans (HDHP).

TC Insurance Terms and Concepts

Get familiar with essential insurance terms such as premiums, beneficiaries, underwriting, and exclusions.

SR State Regulations

Understand the insurance laws and regulations specific to your state, as they can vary from one state to another.

ES Ethical Standards

Learn the ethical responsibilities of an insurance agent, including fiduciary duties, transparency, and client trust.

02 · LIFE POLICY TYPES

Key topics: life insurance policies

A large portion of the exam will focus on the different types of life insurance policies available. It is important to understand the features, benefits, and differences between each type.

TL Term Life Insurance

Provides coverage for a specific period, for example 10, 20, or 30 years, and is typically the most affordable type of life insurance.

WL Whole Life Insurance

A permanent policy that provides lifetime coverage and includes a cash value component that grows over time.

UL Universal Life Insurance

Offers more flexibility in premiums and death benefits compared to whole life, with a cash value component that grows based on interest rates.

VL Variable Life Insurance

Provides permanent coverage with a cash value component invested in separate accounts, offering the potential for growth but with more risk.

Tip: focus on the key differences between these policies and when each type is best suited

03 · HEALTH PLANS & CONCEPTS

Health plans, terms, and the rules

Beyond life policies, the exam covers the major health insurance plan structures and the terms, regulations, and ethical standards that every licensed agent is expected to know.

Major medical insurance Health maintenance organizations (HMOs) Preferred provider organizations (PPOs) High deductible health plans (HDHP) Premiums Beneficiaries Underwriting Exclusions State-specific regulations Fiduciary duties and client trust

Study materials and resources

3. Study Materials and Resources

To succeed in the Life and Health Insurance Exam, you’ll need access to high-quality study materials. Here are some resources to help you prepare:

Study Guides: Comprehensive study guides that cover all of the key exam topics, often with explanations and practice questions.
Practice Exams: Taking practice exams will help you get familiar with the format of the questions and identify areas where you need more review.
Online Courses: Many online platforms offer courses specifically designed to prepare you for the exam. These courses often include video lessons, quizzes, and practice tests.
Flashcards: Flashcards are a great way to memorize insurance terminology and concepts, which are frequently tested on the exam.

Tip: Brokers Alliance offers access to comprehensive study guides and practice exams to help you feel confident on exam day.

Effective study strategies

4. Effective Study Strategies

Here are some study tips to help you make the most of your preparation:

- Set a Study Schedule

Creating a study schedule is key to staying organized and on track. Set aside specific times each day or week to study and stick to the schedule. Focus on one key topic at a time to avoid feeling overwhelmed.

- Take Practice Exams

Practice exams are one of the best ways to test your knowledge and gauge your readiness. They help you become familiar with the question format and timing, and can also highlight areas where you need to spend more time studying.

- Use Study Groups

Consider joining a study group or finding a study partner to discuss difficult concepts and quiz each other. Working with others can help reinforce your knowledge and provide different perspectives on the material.

- Review and Reinforce Key Concepts

Regularly review key concepts, especially insurance terms and the different types of policies. Reinforce your understanding by explaining the material to others or by writing out key points.

Exam day tips

5. Exam Day Tips

On the day of the exam, make sure to:

Get Plenty of Rest: A good night’s sleep will help you feel alert and focused during the exam.
Eat a Healthy Breakfast: A nutritious meal can help fuel your brain and keep your energy levels up.
Stay Calm and Confident: Read each question carefully and take your time. If you don’t know an answer, eliminate any obviously incorrect choices and make an educated guess.

Conclusion

The Life and Health Insurance Exam is a significant step toward becoming a licensed insurance agent. By focusing on key topics, using the right study materials, and following effective study strategies, you can increase your chances of passing the exam and launching a successful career in insurance.

Ready to start your insurance career?

Once you pass the exam, Brokers Alliance is ready to help you build. Independently owned since 1982 and based in Fountain Hills, Arizona, we contract and support agents, agencies, IMOs, FMOs, and BGAs. Reach us at (480) 210-7892.

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