Why might an agent need additional qualifications when selling Variable Life Insurance?

When selling Variable Life Insurance, an agent requires additional qualifications specifically to sell investment-related securities because this type of insurance combines life insurance coverage with an investment component. Variable Life Insurance policies allow policyholders to allocate a portion of their premiums to various investment options, such as stocks, bonds, or mutual funds.

Due to the investment element, agents must be knowledgeable about the associated risks and market performance, and they must adhere to specific regulations and standards that govern the sale of securities. This typically involves obtaining a license, such as the Series 6 or Series 7, which signifies that the agent has the necessary expertise to advise clients on investment choices and handle related transactions appropriately. This requirement ensures that agents can effectively educate their clients about the potential benefits and risks of the investment options available within the policy.

In contrast, while handling customer complaints, managing policy claims, or issuing new policies are important aspects of an insurance agent's role, these tasks do not require the specialized investment licensing that is necessary for selling Variable Life Insurance.