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What Kind of License Is Needed to Write Burial Insurance?

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In the insurance industry, “selling” and “writing” are used interchangeably to describe the process of assisting a customer with acquiring an insurance policy. Although burial insurance is not expensive and therefore will not generate substantial commissions, it is easy to sell in large volumes and obtaining a license to write this insurance is straightforward.

Life Insurance License

Burial insurance is a type of life insurance that is designed to provide only enough coverage to pay for your funeral and burial. Since this type of policy payout is directly related to your life and death, you are required to hold a life insurance producer license before you can sell this product.

Errors & Omissions Insurance

All licensed insurance producers are required to obtain professional liability insurance, called errors & omissions insurance. This type of policy protects you, the agent, if you make a mistake during the sale of a policy that results in a financial loss to your client.

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Business Liability Insurance

If you are an independent insurance broker, you may be required to purchase business liability insurance. This policy provides protection if a client is injured while visiting your office to discuss burial insurance.

State Business License

Most states require businesses to obtain a license before operations can begin. This includes the registration of your business’s trade name, or permission to actively solicit the sale of products in your region.

Agent Appointment License

Before you are permitted to sell burial insurance, you must register yourself as an approved agent with the carrier that provides the products. Contact the insurance company that offers the burial insurance products you want to sell and complete the necessary agent appointment paperwork to become licensed with that particular provider.

2016 Salary Information for Insurance Sales Agents

Insurance sales agents earned a median annual salary of $49,990 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, insurance sales agents earned a 25th percentile salary of $35,500, meaning 75 percent earned more than this amount. The 75th percentile salary is $77,140, meaning 25 percent earn more. In 2016, 501,400 people were employed in the U.S. as insurance sales agents.

About the Author

Gregory Gambone is senior vice president of a small New Jersey insurance brokerage. His expertise is insurance and employee benefits. He has been writing since 1997. Gambone released his first book, "Financial Planning Basics," in 2007 and continues to work on his next industry publication. He earned a Bachelor of Science in psychology from Fairleigh Dickinson University.

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