If you're looking for a side hustle that can actually turn into serious income, let me save you months of research: get your life and health insurance license.
Here's why it beats every other professional license for side income.
The Numbers Don't Lie
Metric | Life & Health Insurance |
|---|---|
Exam Cost | $50-100 (one-time) |
Study Time | 40-60 hours |
Pass Rate | 65-70% first attempt |
Time to First Sale | 1-2 weeks after license |
Average Commission | $500-2,000 per policy |
Renewal Commissions | 5-10% annually (passive income!) |
Compare that to:
Real estate license: 60-180 hours of classes, 3-6 months to first commission
Series 7: Requires firm sponsorship (good luck getting that part-time)
CFP: 2+ years of study, $1,000+ in exam fees
Why This License is Perfect for Side Hustlers
1. No Sponsorship Required
Unlike securities licenses (SIE, Series 7, Series 66), you don't need a firm to sponsor you. Pass the exam, get appointed with a carrier, and you're in business.
2. Work When You Want
Evenings and weekends are actually the BEST time to sell insurance—that's when people are home. Perfect for anyone with a 9-5.
3. Your Network is Your First Client Base
Everyone needs life insurance. Your friends, family, coworkers, neighbors—they're all potential clients. No cold calling required to start.
4. Residual Income is Real
Sell a policy once, get paid every year when it renews. After 2-3 years of part-time work, you could have $500-2,000/month in passive renewal commissions.
5. Low Barrier to Entry
The exam is straightforward. It tests your knowledge of:
Life insurance products (term, whole, universal)
Health insurance basics (medical, disability, long-term care)
State regulations
Ethics
40-60 hours of focused study and you're ready.
The Realistic Path
Month 1: Study and pass the exam (2-3 weeks of evening study)
Month 2: Get appointed with 2-3 carriers, complete product training
Month 3: Make your first sales to warm contacts
Month 6: Consistent side income of $1,000-3,000/month
Year 2: Decide if you want to go full-time or keep it as passive income
What About the Exam?
The life and health insurance exam varies by state, but typically:
80-150 questions
2-3 hours
70% passing score
Multiple choice
The content isn't hard—it's just a lot of memorization. Products, definitions, regulations.
Start Studying Free
I built a free exam prep resource specifically for the life and health insurance exam. It covers all 50 states and includes:
Complete study guides for each topic
Practice questions with explanations
AI tutor to answer your questions 24/7
No credit card. No catch. Just free prep materials.
The Bottom Line
If you want a side hustle that:
Has low startup costs
Doesn't require permission from anyone
Pays well from day one
Builds passive income over time
Could become a full-time career
...then the life and health insurance license is your answer.
The exam is the only thing standing between you and your first commission check.
Study smart,
by Ran Chen, EA, CFP®
2026/01 @ San Francisco
P.S. - The average person passes the exam in 2-3 weeks of part-time study. What's stopping you from starting this weekend?