What qualifications must an agent hold to sell variable life insurance policies?

To sell variable life insurance policies, an agent must meet specific qualifications that ensure they are properly licensed to handle products that include investment components. This type of insurance is unique because it combines life insurance with investment options, which subjects it to different regulations compared to traditional life insurance policies.

The correct answer highlights that agents need both state licensing to sell life insurance and variable products, along with federal licensing because variable life insurance policies are considered securities. This means that in addition to the standard life insurance license obtained from the state, agents must also pass the Series 6 (or Series 7) exam, administered by the Financial Industry Regulatory Authority (FINRA), to legally sell and recommend these products.

By requiring both state and federal licensing, regulators ensure that agents are knowledgeable about the complexities of variable life insurance, including investment risks and regulatory obligations, thus protecting consumers and maintaining market integrity.