What must an agent obtain in order to sell variable life insurance?

To sell variable life insurance, an agent must obtain a FINRA registration. This requirement stems from the nature of variable life insurance, which is considered a security because it includes investment components that fluctuate in value based on the performance of underlying investment options, such as stocks or bonds.

Since variable life insurance products are tied to investment performance, agents must comply with federal regulations governing the sale of securities. This compliance involves passing the necessary qualification exams and obtaining registration with the Financial Industry Regulatory Authority (FINRA).

While having a state license is essential for selling insurance products in general, it is not sufficient on its own for variable life insurance due to its securities aspect. The securities license ensures that the agent has the appropriate knowledge and authority to discuss and manage the investment and regulatory components involved in variable life insurance products.