Insurance Exams18 min read

How Hard Is the Life & Health Insurance Exam in 2026? Pass Rates, Hardest Topics & State-by-State Breakdown

Is the Life & Health insurance exam hard? See real pass rates (55-65%), the hardest topics, state-by-state requirements for all 50 states, and a free study plan to pass on your first try in 2026.

Ran Chen, EA, CFP®February 6, 2026

Key Facts

  • The Life & Health insurance exam has a national first-time pass rate of approximately 55-65%, varying significantly by state.
  • Retake pass rates drop to approximately 40-50%, making first-attempt preparation critical.
  • Most states require a 70% passing score, though some states like California require only 60%.
  • Exam length ranges from 100 to 170 questions depending on the state, with time limits of 2-3 hours.
  • Pre-licensing education requirements vary from 0 hours (Illinois, Colorado) to 60 hours (Florida).
  • Policy provisions and clauses are the most frequently failed topic on the Life & Health exam.
  • The total cost of obtaining a Life & Health license is typically $200-$600 including exam fee, pre-licensing course, and application.
  • The median salary for insurance sales agents is $59,080 per year (BLS May 2024), with the 90th percentile earning $135,660.
  • Most states impose a 30-day waiting period between exam retakes, though some allow immediate reattempts.
  • The exam covers both life and health insurance in a single combined test in most states.

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Data sources: Bureau of Labor Statistics Occupational Employment and Wages (May 2024), state insurance department websites, Pearson VUE / Prometric / PSI exam vendor data, and state-published pass rate reports. Exam requirements verified against state insurance department regulations as of February 2026.


Life & Health Insurance Exam Difficulty: At a Glance

FactorDetails
National First-Time Pass Rate~55-65% (varies significantly by state)
Retake Pass Rate~40-50%
Number of Questions100-170 (state-dependent)
Time Limit2-3 hours
Passing Score70% in most states (range: 65-72%)
Testing VendorsPearson VUE, Prometric, or PSI
FormatMultiple choice, computer-based
Pre-Licensing Hours0-60 hours (state-dependent)
Exam Fee$40-$75
Total Investment$200-$600 (course + exam + materials)

The Life & Health insurance licensing exam is harder than most people expect. With a national first-time pass rate hovering around 55-65%, roughly one in three test-takers walks out without a passing score. That means preparation is not optional -- it is essential.

This guide breaks down everything you need to know: real pass rates, the hardest topics, state-by-state requirements, exam costs, salary potential, and a proven study plan. Whether you are in California, Texas, Florida, or any other state, you will find actionable information here.

Start FREE Life & Health Exam Prep -->Free exam prep with practice questions & AI tutor

How the Life & Health Exam Compares to Other Professional Exams

To put the difficulty in context, here is how the Life & Health exam stacks up against other licensing exams:

ExamFirst-Time Pass RateQuestionsStudy TimeCost
Life & Health Insurance55-65%100-1704-6 weeks$200-$600
Property & Casualty Insurance50-60%100-1704-6 weeks$200-$600
SIE (Securities)~74%754-8 weeks$80
Series 7~72%1258-12 weeks$300
Real Estate (state avg.)50-60%80-1504-8 weeks$300-$800
CPA Exam (per section)~50%72-7812-18 months$3,000+

The Life & Health exam sits in the middle of the difficulty spectrum. It is harder than the SIE exam but significantly more accessible than the CPA or bar exam. The key difference is that Life & Health requires breadth across two distinct subject areas rather than extreme depth in one.


Why the Pass Rate Is Lower Than You Think

Many candidates underestimate this exam for a few reasons:

1. It Is Not a Memorization Test

The exam does not just ask you to recall definitions. It presents scenario-based questions that force you to apply concepts. For example, you will not just be asked "What is the incontestability clause?" -- you will be given a situation where a policyholder made a misrepresentation three years ago and asked whether the insurer can contest the claim.

2. Two Subjects in One Exam

Most states combine life insurance and health insurance into a single exam. That means you need to master two distinct bodies of knowledge -- life insurance products, provisions, and regulations alongside health insurance plans, Medicare, disability income, and federal laws like HIPAA and COBRA. The sheer breadth of material catches people off guard.

3. State-Specific Regulations Add Complexity

Every state layers its own insurance regulations on top of the national content. Whether it is California's unique free-look periods, Texas's separate exam structure, or New York's stringent consumer protection rules, you need to know the specifics for your state.

4. Retake Rates Tell the Real Story

Once candidates fail and retake the exam, the pass rate drops to approximately 40-50%. This is not because the exam gets harder -- it is because many retakers do not change their study approach. They study the same way, get the same result.

Bottom line: The Life & Health exam is passable, but you need a real study plan. Candidates who prepare seriously with practice questions and structured review pass at rates well above the national average.


Exam Content Breakdown: What You Will Be Tested On

Understanding the weight of each topic helps you allocate study time effectively. Here is the typical content distribution:

Topic AreaExam WeightDifficulty RatingStudy Priority
Life Insurance Basics20-25%MediumHigh
Health Insurance Basics15-20%Medium-HighHigh
Life Policy Provisions & Options15-20%HighCritical
Health Policy Provisions10-15%HighCritical
Types of Policies & Riders10-15%MediumHigh
State-Specific Regulations10-15%Medium-HighHigh
Ethics & Insurance Law5-10%MediumModerate

The Critical Takeaway

Policy provisions (both life and health) collectively make up 25-35% of the exam and carry the highest difficulty rating. If you are going to prioritize anything, prioritize provisions. They are where most candidates lose the points that cost them a passing score.

For a deep dive into each topic area with practice questions, check out our full study guide:

Access the Complete Life & Health Study Guide -->Free exam prep with practice questions & AI tutor

The 6 Hardest Topics on the Life & Health Exam

Based on exam performance data and candidate feedback, these are the topics that trip up the most test-takers -- ranked from most to least failed:

1. Policy Provisions and Clauses (Most Failed Topic)

This is the number one reason candidates fail. You need to know the incontestability clause, grace period, reinstatement provision, entire contract clause, misstatement of age provision, assignment clause, and suicide clause -- and more importantly, how they apply in specific scenarios.

Study strategy: Create flashcards for every provision and write out a one-sentence scenario for each. If you can explain when a provision applies in context, you know it well enough for the exam.

2. Annuity Types and Taxation

Fixed, variable, indexed, immediate, deferred -- the variety of annuity products is overwhelming. Then layer on the taxation rules: qualified vs. non-qualified, LIFO for withdrawals, 10% early withdrawal penalty before age 59 1/2, and exclusion ratio calculations.

Study strategy: Build a comparison chart. Map each annuity type to its features, risks, and tax treatment. Focus on how they differ, not just what each one is.

3. Health Insurance Portability Regulations (HIPAA, COBRA, ACA)

Federal health insurance laws are dense and heavily tested. You must understand COBRA continuation (18 vs. 36 months, qualifying events), HIPAA portability (creditable coverage, special enrollment), and ACA provisions (essential health benefits, guaranteed issue, metal tiers).

Study strategy: Make a timeline chart showing which law applies in which situation. COBRA covers job loss, HIPAA covers portability between plans, ACA covers marketplace rules. Knowing when each applies is the key.

4. State-Specific Regulations

Every state has its own twists. Free-look periods differ. Replacement notification rules differ. Some states have unique consumer protection requirements. This topic is hard because generic study materials do not always cover your state's specifics.

Study strategy: After studying general content, dedicate 10-15% of your study time exclusively to your state's insurance code. Use our state-specific prep guides:

5. Life Insurance Settlement Options

Lump sum, interest only, fixed period, fixed amount, and life income (with and without period certain) -- the exam tests your ability to match the right settlement option to a given beneficiary situation. Candidates struggle because the options sound similar and the math can be tricky.

Study strategy: For each settlement option, write down who it is best for and why. Practice scenario questions that ask you to recommend the best option for a specific beneficiary.

6. Disability Income Provisions

Own occupation vs. any occupation, elimination periods, benefit periods, residual disability, split definitions -- disability income policies have more moving parts than most candidates expect. The transition from "own occupation" to "any occupation" at 24 months is a frequently tested concept.

Study strategy: Draw a timeline of a disability claim from onset through benefit period. Mark where each provision kicks in. This visual approach makes the sequence easier to remember.

Struggling with any of these topics? Our AI study assistant can explain any concept instantly. Just highlight the term you do not understand and ask. It is like having a tutor available 24/7.


Common Mistakes That Cost Candidates a Passing Score

Beyond the hard topics, there are study and test-taking mistakes that consistently sink candidates:

Mistake 1: Relying Only on the Pre-Licensing Course

The pre-licensing course teaches you the material, but it does not prepare you for how the exam tests the material. Scenario-based questions require you to apply knowledge, not just recall it. You must supplement your course with practice questions.

Mistake 2: Ignoring State-Specific Content

Many candidates study only the national material and skip their state-specific regulations. In most states, 10-15% of the exam is state-specific. That is 15-25 questions you are essentially guessing on if you skip this section.

Mistake 3: Not Taking Timed Practice Exams

Knowing the material and performing under time pressure are two different skills. With roughly one minute per question, you cannot afford to spend three minutes puzzling over a difficult provision question. Practice under timed conditions at least twice before exam day.

Mistake 4: Studying Everything Equally

Not all topics carry equal weight or difficulty. Spending the same amount of time on ethics (5-10% of the exam) as you do on policy provisions (15-20%) is an inefficient use of your study hours. Prioritize based on both weight and difficulty.

Mistake 5: Changing Answers Without Good Reason

Research consistently shows that your first instinct on multiple-choice questions is usually correct. Candidates who change answers without a clear rationale tend to change correct answers to incorrect ones. Only change an answer if you realize you misread the question or remembered a specific fact.


State-by-State Exam Comparison: All 50 States + DC

Exam requirements vary dramatically by state. This is the most comprehensive state-by-state comparison available anywhere:

StateQuestionsTimePassing ScorePre-Licensing HoursTesting VendorExam Fee
Alabama1252.5 hrs70%30 hrsPearson VUE$54
Alaska1002 hrs70%20 hrsPrometric$75
Arizona1002 hrs70%40 hrsPearson VUE$53
Arkansas1252.5 hrs70%40 hrsPearson VUE$54
California1503 hrs60%52 hrsPSI$88
Colorado1502.5 hrs70%None requiredPearson VUE$53
Connecticut1202 hrs70%40 hrsPrometric$59
Delaware1202 hrs70%40 hrsPrometric$54
DC1002 hrs70%40 hrsPSI$54
Florida1502.5 hrs70%60 hrsPearson VUE$55
Georgia1252.5 hrs70%40 hrsPearson VUE$60
Hawaii1002 hrs70%20 hrsPrometric$61
Idaho1252.5 hrs70%27 hrsPrometric$52
Illinois1502.5 hrs70%None requiredPearson VUE$58
Indiana1502.5 hrs70%40 hrsPearson VUE$52
Iowa1002 hrs70%36 hrsPrometric$48
Kansas1002 hrs70%40 hrsPearson VUE$48
Kentucky1252.5 hrs70%40 hrsPSI$50
Louisiana1502.5 hrs70%40 hrsPrometric$59
Maine1002 hrs70%40 hrsPrometric$58
Maryland1202 hrs70%40 hrsPrometric$49
Massachusetts1502 hrs70%40 hrsPrometric$54
Michigan1502.5 hrs70%40 hrsPrometric$50
Minnesota1502.5 hrs70%30 hrsPearson VUE$50
Mississippi1252.5 hrs70%40 hrsPearson VUE$52
Missouri1202 hrs70%24 hrsPearson VUE$48
Montana1002 hrs70%20 hrsPSI$56
Nebraska1002 hrs70%40 hrsPSI$48
Nevada1502.5 hrs70%40 hrsPSI$61
New Hampshire1002 hrs70%40 hrsPrometric$55
New Jersey1502.5 hrs70%40 hrsPrometric$55
New Mexico1002 hrs70%40 hrsPSI$51
New York1502 hrs70%40 hrsPrometric$49
North Carolina1252.5 hrs70%20 hrsPSI$44
North Dakota1002 hrs70%20 hrsPrometric$52
Ohio1502.5 hrs70%40 hrsPSI$42
Oklahoma1252.5 hrs70%40 hrsPSI$50
Oregon1502.5 hrs70%40 hrsPrometric$57
Pennsylvania1502.5 hrs70%24 hrsPrometric$63
Rhode Island1002 hrs70%40 hrsPrometric$55
South Carolina1252.5 hrs70%40 hrsPSI$50
South Dakota1002 hrs70%20 hrsPrometric$52
Tennessee1252.5 hrs70%40 hrsPearson VUE$59
Texas1502.5 hrs70%40 hrs (each line)Pearson VUE$62
Utah1252.5 hrs70%40 hrsPearson VUE$54
Vermont1002 hrs70%20 hrsPrometric$55
Virginia1502.5 hrs70%30 hrsPearson VUE$57
Washington1502.5 hrs70%20 hrsPSI$55
West Virginia1002 hrs70%40 hrsPSI$48
Wisconsin1252.5 hrs70%24 hrsPSI$52
Wyoming1002 hrs70%40 hrsPrometric$52

Key observations:

  • Question counts range from 100 (Alaska, Arizona, DC, Hawaii, Iowa, and 15 other states) to 150 (California, Texas, New York, Illinois, and 14 other states)
  • Pre-licensing requirements range from 0 hours (Illinois, Colorado) to 60 hours (Florida)
  • California is the only state requiring just 60% to pass; all other states require 70%
  • Testing vendors are split roughly equally between Pearson VUE, Prometric, and PSI
  • Exam fees range from $42 (Ohio) to $88 (California)

Need the specifics for your state? We have exam prep guides for every state:

State-Specific Exam Prep Guides

We publish detailed guides for every state. Here are some of the most popular:

See All 50 States + DC Life & Health Guides -->Free exam prep with practice questions & AI tutor

What the Exam Costs: Full Breakdown

Understanding the total investment helps you budget and avoid surprises:

Cost CategoryLow EstimateHigh EstimateNotes
Exam Fee$40$75Varies by state and vendor
Pre-Licensing Course$100$400Required in most states
Study Materials$0$100Free with OpenExamPrep
Background Check$0$50Required in some states
License Application$20$75State filing fee
Total$200$600One-time investment

The good news: this is one of the most affordable professional licenses you can earn. Compare that to the cost of a college degree or other certifications, and the return on investment becomes clear -- especially when you consider the earning potential.

Save on study materials: Our practice questions and study guides are completely free. That alone can save you $100-$300 compared to paid prep providers.

Start FREE Life & Health Practice Questions -->Practice questions with detailed explanations

Pre-Licensing Education: What Each State Requires

Before you can sit for the exam, most states require you to complete a pre-licensing education course. These courses cover the foundational knowledge you will be tested on. Here is a breakdown for the 10 most-asked-about states:

StateRequired HoursFormatNotes
California52 hoursLife + Health combinedMust be CDI-approved course
Texas40 hours per lineLife and Health separateMust include ethics component
Florida60 hoursCombined courseHighest requirement nationally
New York40 hoursCombined courseMust include 2-hour ethics module
Pennsylvania24 hoursCombined courseRelatively low requirement
Ohio40 hoursCombined courseMust be ODI-approved
IllinoisNoneN/AOne of few states with no requirement
Georgia40 hoursCombined courseMust be Commissioner-approved
Virginia30 hoursCombined courseIncludes ethics component
North Carolina20 hoursCombined courseSecond lowest among states requiring education

Important notes about pre-licensing:

  • Courses are available online or in-person in most states
  • Course completion certificates are typically valid for 6-12 months -- do not wait too long after finishing to take the exam
  • Some states require you to pass a course exam before you can register for the state licensing exam
  • Pre-licensing covers the same material as the exam, so it counts as study time

If your state requires pre-licensing, start there. If your state does not (like Illinois or Colorado), you will need to be especially disciplined about self-study since you will not have the structure of a required course.


Day of the Exam: What to Expect

Knowing what test day looks like eliminates surprises and reduces anxiety.

Before You Arrive

  • Confirm your appointment 24-48 hours in advance
  • Bring two valid forms of ID (one must be government-issued photo ID)
  • Arrive 30 minutes early -- late arrivals may be turned away
  • Know your testing center location -- drive there beforehand if possible

At the Testing Center

  • You will store personal items in a locker (no phones, notes, watches, or calculators allowed)
  • You will be escorted to a computer workstation
  • The proctor will verify your identity and provide scratch paper or a whiteboard
  • Some testing vendors provide an optional tutorial period (usually 10-15 minutes) that does not count against your exam time

During the Exam

  • Read each question completely before looking at the answers
  • Flag difficult questions and come back to them -- do not get stuck
  • Watch for absolute words like "always," "never," and "must" -- these are often wrong
  • Manage your time: for a 150-question exam in 2.5 hours, that is exactly 1 minute per question
  • Do not change answers unless you have a clear reason -- your first instinct is usually correct

After the Exam

  • You will receive your score immediately on screen at most testing centers
  • A printed score report is typically available before you leave
  • If you pass, you can begin the license application process that same day
  • If you do not pass, you will receive a breakdown of your performance by topic area -- use this to target your restudying

Retake Policy: What Happens If You Do Not Pass

Failing is not the end of the road. Here is what you need to know about retaking the exam:

Retake FactorTypical Policy
Waiting Period30 days in most states (some allow immediate retake)
Number of AttemptsUnlimited in most states
Additional CostMust re-register and pay full exam fee each time
Additional StudySome states require additional pre-licensing hours after multiple failures

The most important retake strategy: Do not just re-study the same way. Use your score report to identify your weakest topics and focus there. Candidates who shift their study approach between attempts have significantly better outcomes than those who simply review the same material.

Tips for Retakers

If you are retaking the exam, here is how to make your next attempt count:

  1. Analyze your score report carefully. Identify the 2-3 topic areas where you scored lowest. Those are your priority.
  2. Use practice questions heavily. Take at least 3-5 full-length practice exams before reattempting. Focus on question types you got wrong.
  3. Study your state-specific content. Many retakers neglect the state portion a second time. Do not repeat that mistake.
  4. Try a different learning method. If you only read a textbook the first time, try practice questions and AI explanations. If you only did questions, go back and read the conceptual material.
  5. Set a specific retake date. Having a target date creates urgency and prevents indefinite procrastination.
Use Our FREE AI Tutor to Prepare for Your Retake -->Free exam prep with practice questions & AI tutor

Career Outlook and Salary: Is It Worth It?

The effort you put into passing this exam pays off. Insurance sales is a growing field with strong earning potential.

Insurance Sales Agent Salary (BLS, May 2024)

PercentileAnnual Salary
10th Percentile$36,390
25th Percentile$44,960
Median (50th)$59,080
75th Percentile$84,500
90th Percentile$135,660

Top-Paying States for Insurance Sales Agents

StateAverage Annual Salary
ConnecticutHighest nationally
District of ColumbiaTop 5
New YorkTop 5
MassachusettsTop 5
Rhode IslandTop 5

When you factor in the $200-$600 total exam investment against a median salary of $59,080, the return on investment is exceptional. Top performers in the 90th percentile earn over $135,000 per year -- and many agency owners and experienced agents earn well beyond that through renewals and book-of-business value.

The Life & Health license specifically opens doors to:

  • Life insurance sales (term, whole, universal, variable)
  • Health insurance enrollment (individual, group, ACA marketplace)
  • Medicare supplement and Medicare Advantage (growing rapidly with aging population)
  • Annuity sales (increasingly important for retirement planning)
  • Disability and long-term care insurance

Why the Timing Is Right in 2026

Several trends make 2026 an excellent time to enter the insurance industry:

  • Aging population: As Baby Boomers continue to age, demand for Medicare supplement, long-term care, and annuity products is surging. Agents who specialize in senior markets are especially well-positioned.
  • ACA marketplace growth: The Affordable Care Act marketplaces continue to expand, and consumers need knowledgeable agents to help them navigate plan selection during open enrollment.
  • Digital transformation: Insurance companies are investing heavily in technology, creating opportunities for tech-savvy agents who can serve clients through digital channels.
  • Workforce turnover: A significant portion of the current insurance workforce is approaching retirement age, creating openings for new agents at all experience levels.

The bottom line: a $200-$600 investment in licensing can lead to a career with a $59,080 median salary and potential earnings above $135,000 at the top end. Few professional certifications offer that kind of return.


How to Study: A Proven Approach

Based on what we know about the hardest topics and the exam structure, here is a study framework:

Weeks 1-2: Build the Foundation

  • Complete your pre-licensing course (if your state requires one)
  • Read through all life insurance basics: term, whole, universal, variable
  • Read through all health insurance basics: major medical, Medicare, disability

Weeks 3-4: Go Deep on Provisions

  • Master life insurance policy provisions (the most-failed topic)
  • Master health insurance policy provisions
  • Study annuity types and taxation thoroughly
  • Learn HIPAA, COBRA, and ACA regulations

Weeks 5-6: Practice and Refine

  • Take full-length practice exams under timed conditions
  • Review every wrong answer and understand why you got it wrong
  • Focus on your state-specific regulations
  • Drill your weakest topics until they become strengths

Final 3 Days: Review and Rest

  • Do a light review of key concepts and provisions
  • Do not cram -- your brain needs rest to consolidate knowledge
  • Get a full night's sleep the night before the exam

Study Hour Benchmarks by State Pre-Licensing Requirement

Your total study time depends partly on how many pre-licensing hours your state requires:

State CategoryPre-Licensing HoursAdditional Self-StudyTotal Study Hours
No pre-licensing (IL, CO)0 hrs80-120 hrs80-120 hrs
Low pre-licensing (NC: 20 hrs, PA: 24 hrs)20-24 hrs60-80 hrs80-104 hrs
Medium pre-licensing (VA: 30 hrs, NY: 40 hrs)30-40 hrs40-60 hrs70-100 hrs
High pre-licensing (CA: 52 hrs, FL: 60 hrs)52-60 hrs30-50 hrs82-110 hrs

Regardless of your state's requirements, plan for approximately 80-120 total hours of combined coursework and self-study. This is the range where first-time pass rates climb well above the national average.

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How OpenExamPrep Helps You Pass

Our free Life & Health exam prep platform includes everything you need:

ResourceWhat You Get
Practice QuestionsHundreds of exam-style questions with detailed explanations
AI Study AssistantAsk any question about exam topics and get instant explanations
Topic ReviewsComprehensive coverage of every exam topic area
State-Specific ContentTailored prep for your state's unique requirements
Progress TrackingSee where you are strong and where you need work

Every feature is designed to get you to a passing score as efficiently as possible. The AI study assistant is especially powerful for those "stuck" moments -- when you are reviewing a practice question and cannot figure out why a particular answer is correct, just ask the AI and get an instant, detailed explanation.

Ready to Start?

Pick your state and begin your free exam prep today:


Final Verdict: How Hard Is It Really?

The Life & Health insurance exam is moderately difficult -- harder than a basic knowledge test, but very passable with proper preparation. Here is the honest assessment:

  • If you study seriously for 4-6 weeks, you will very likely pass on your first attempt
  • If you rush through a pre-licensing course and wing it, you have roughly a coin-flip chance
  • If you focus on policy provisions and practice questions, you give yourself the best odds

The 55-65% first-time pass rate reflects a mix of well-prepared and underprepared candidates. Candidates who use structured study plans and practice questions consistently pass at rates above 80%.

Your insurance career starts with passing this exam. The investment is modest, the preparation is manageable, and the career upside is significant.

Begin Your FREE Life & Health Exam Prep Today -->Free exam prep with practice questions & AI tutor
Test Your Knowledge
Question 1 of 4

What is the approximate national first-time pass rate for the Life & Health insurance exam?

A
75-85%
B
55-65%
C
40-50%
D
85-95%
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