What type of licenses are required to sell variable annuities?

To sell variable annuities, insurance professionals must hold both a life insurance license and a securities license. Variable annuities are considered both an insurance product and a security, which means they fall under the regulation of both the insurance and securities authorities.

The life insurance license is necessary because variable annuities provide death benefits, and the selling of such insurance products requires an understanding of life insurance principles and regulations. The securities license is required because variable annuities often involve investment options that can fluctuate in value, and selling these products mandates compliance with securities laws and regulations.

This combination of licenses ensures that the individual has the necessary knowledge and legal backing to provide clients with accurate information regarding the complex nature of variable annuities and their investment components. Thus, holding both licenses is essential for operating legally and effectively in this dual capacity.