A securities license is required for a life insurance producer to sell:

A life insurance producer must have a securities license to sell variable life insurance because this type of policy includes an investment component tied to financial markets. Variable life insurance allows policyholders to allocate a portion of their premium payments to various investment options, such as stocks, bonds, or mutual funds, which can fluctuate in value. This investment aspect classifies it similarly to securities, as the value of the policy can change based on the performance of those underlying investments. Therefore, the sale of variable life insurance falls under the realm of securities regulation, necessitating the appropriate licensing.

On the other hand, modified life insurance, modified endowment contracts (MEC), and universal life insurance do not have the same investment characteristics and therefore do not require a securities license for their sale. These policies primarily focus on providing a death benefit and may include cash value components, but they do not link cash values to a fluctuating market in the way variable life insurance does.