A securities license is required for a life insurance producer to sell which type of insurance?

A life insurance producer must obtain a securities license to sell variable life insurance because this product combines both insurance and investment components. Variable life insurance allows policyholders to allocate their premiums among various investment options, such as stocks and bonds, which means the cash value and death benefit can fluctuate based on the performance of these investments.

Since variable life insurance functions as a security investment product, it falls under the regulation of the Securities and Exchange Commission (SEC) and requires producers to be licensed not only for life insurance but also for securities. This ensures that producers have the necessary knowledge and training to understand and explain the investment risks associated with variable policies to clients.

In contrast, term life insurance, whole life insurance, and universal life insurance do not include an investment component in the same manner and therefore do not require a securities license. These types of insurance products offer fixed benefits and cash value growth that do not depend on market performance, making them strictly insurance products rather than securities.