A Variable Contracts License is a professional license that allows an individual to sell variable annuities, variable life insurance policies, and other variable insurance products. The license is issued by the Financial Industry Regulatory Authority (FINRA) and is required for professionals who wish to sell these types of insurance products.
Variable contracts refer to insurance policies where the value of the benefit or payout is tied to the performance of an underlying investment portfolio. This means that the policyholder’s investment returns are not fixed, but rather depend on the performance of the investment fund. This type of insurance differs from traditional insurance policies where the payout is fixed regardless of any market volatility.
A Variable Contracts License is necessary for professionals who advise clients on insurance products that have variable investment options. The license is also required for professionals who sell these products or provide any related service to clients.
The FINRA stipulates the requirements for obtaining a Variable Contracts License. Prospective licensees must pass the FINRA Series 6 or 7 exams, depending on the scope of their activities. They must also meet ongoing continuing education requirements to maintain their license.
Professionals with a Variable Contracts License are well-positioned to help clients plan for retirement or other long-term financial goals. Variable annuities and variable life insurance policies can provide clients with an avenue for investment growth while also offering death benefits or guaranteed income streams.
It is important for individuals seeking financial services to ensure the professional they choose is licensed and has the appropriate credentials. A Variable Contracts License is one example of a license that indicates a professional’s competency and authorization to sell variable insurance products.
In conclusion, a Variable Contracts License is a professional license that enables an individual to sell variable annuities, variable life insurance policies, and related products. The license is issued by FINRA and requires passing the Series 6 or 7 exams, as well as meeting ongoing continuing education requirements. Professionals with this license can provide clients with investment options, death benefits, and guaranteed income streams.