How to Buy Life Insurance

It's not difficult to buy life insurance if you know where to start.

Buying life insurance can be an easy process if you’re prepared and know what to expect. With a little research and time, you can ensure that your family will be taken care of in the event of your death.

Key Takeaways

First, define your priorities and determine how much life insurance coverage you need
Choose the type of life insurance you want
Do your research, work with an agent or a broker to find the right coverage at the right price
Fill out your application carefully, and proceed with the various underwriting requirements (phone call, medical exam,...)
You will be covered once the policy documents are signed and the first premium payment completed

Determine your needs

This looks different for everybody. The first question you should consider is why you are buying life insurance?

Sometimes it is because you are the primary breadwinner for your family, and your death could cause a significant financial burden. Other times people purchase life insurance because they have debts that still need to be paid off, like a mortgage, credit cards, student loans, or personal debts which could burden their families.

Many people simply feel better knowing they are leaving monetary support to their children or grandchildren. Some people even use life insurance to bequeath a final gift to a favorite charity or establish trusts for their estate.

No matter what the reason, almost everybody needs life insurance to, at a minimum, cover their final funeral expenses. Once you’ve clarified the purpose of your life insurance policy, and how much life insurance you need, then the second important question is what type of life insurance is right for you.

Choose the type of life insurance you want

If you are looking for a straightforward, cost-effective option, term life insurance may be the right choice for you.

If you want an investment-style option, consider whole life insurance.

Whichever type of life insurance you choose, make sure that you consider all your options and decide based on your lifestyle and budgeting goals. This looks different for everyone.

Do your research and compare quotes

If most insurers offer similar types of life insurance, each has different products, options and add-ons, and considers different factors for the calculation of your premiums. Comparing quotes online is an easy way to get a good overview of your options: you will get an estimated premium for the type of insurance and chosen coverage amount.

Price is not the only criteria when it comes to life insurance, and prospective buyer should look at riders and other features offered by the insurer. It is also important to remember that your life insurance premiums will be determined by many factors depending on your health history and lifestyle choices.

Choosing the right life insurance company is an essential part of setting up your life insurance policy. You’d want to choose a trustworthy company with a history of paying claims promptly, great customer service, good customer reviews and high independent industry ratings. Considering all these criteria will help you find the best life insurance company for you.

Finally, talk to your agent to understand your options and find a company that caters to your specific needs.

Get an Instant life insurance quote

You can easily end up spending hours doing your research and analyzing coverage options, insurance premiums and deductibles... or you can let us do the work for you!

Get a Quote

Complete your application

The online quote is only a preliminary estimation of the premiums. The actual application process takes more time, as the insurer will have a thorough evaluation of your background, medical history, and lifestyle choices.

Once you’ve filled out your application, you will have to submit the first payment. The first payment covers you until your policy is completely effective. Alongside the first payment you may be asked to submit your medical records, fill out a questionnaire, or complete a medical exam or interview. This is standard procedure to determine your overall health and suitability for life insurance. During the waiting period, your application and documents will be submitted to underwriting.

Go through underwriting

Underwriting is a major step of the application process. Underwriting will review your application and documents to evaluate the risks of your profile and make a final decision regarding your application. They might approve or decline your application, or revise the preliminary quote received online.

Underwriting can take up to 4-6 weeks and once you are confirmed as a suitable candidate, your life insurance policy will be issued.

Rest easy. Once you have a life insurance policy in place, you can enjoy knowing that you and your family are covered properly.

To buy life insurance is an important part of your overall financial planning. If you have any further questions or concerns, you should always feel free to contact your life insurance agent!