Home Life insurance How to buy life insurance How to buy life insurance Written by Erik Martin Erik Martin Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com. Reviewed by Les Masterson Les Masterson Les, a former managing editor, insurance, at QuinStreet, has more than 20 years of experience in journalism. In his career, he has covered everything from health insurance to presidential politics. Updated on: April 20, 2023 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Buying life insurance is a key step in ensuring your family’s financial security. It provides a safety net to cover expenses like mortgage payments and living costs in the event of your death. When purchasing life insurance, it’s important to assess your financial situation and your dependents’ needs to choose the right type of policy, whether term life for temporary coverage or permanent life for lifelong protection. Life insurance policies can also be tailored to fit your budget and goals. Term life is usually more affordable, offering substantial coverage during critical years, while permanent life insurance includes a cash value component for long-term savings. To buy life insurance, assess your coverage needs, compare quotes from various insurers, choose the right policy type, and complete an application with the selected provider. How to shop for a life insurance policy When purchasing a life insurance policy, take the following steps: Assess your needs: Determine how much coverage your family would need to cover expenses like debts, living costs, and future goals. Choose the right policy type: Decide between term life for temporary coverage or permanent life for lifelong protection and savings options. Compare quotes: Gather quotes from multiple insurers to find the best coverage at the most affordable rate for your budget. Review insurer ratings: Check the financial stability and customer reviews of insurers to ensure you’re choosing a reliable provider. Complete the application: Fill out an application, which may include a medical exam, to finalize your policy with the chosen insurer. Review and update your coverage periodically: Once approved, periodically review your policy to ensure it still meets your evolving needs. “Nothing beats a trusted insurance agent whom you already have a relationship with. Ask what life insurance options they have available,” suggests Jonathan Voegele, agency vice president for the Central Region of COUNTRY Financial in Bloomington, Illinois. Assess your life insurance needs When you’re buying life insurance, you need to start by choosing between term and whole life insurance. Consider whether you need affordable, temporary coverage for a set period — With term life — or lifelong protection with a cash value component that can grow over time — whole life. Term life is ideal for those seeking lower premiums, while whole life offers more comprehensive, long-term benefits but at a higher cost. “Term insurance pays only if death occurs during the term of the policy, which is usually from one to 30 years,” says Mark Friedlander, director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida. After you determine the type of policy you need to buy, you should figure out how much coverage you need. John Buenger, senior financial manager and advisor at the Rice Agency, says a good rule of thumb is to aim for coverage that’s 10 to 15 times your annual income. You can tally up your financial obligations to get a more precise amount. Consider the following costs: Mortgage payments Future education costs Loans Everyday expenses Child care Funeral expenses “An applicant earning $100,000 annually should probably purchase between $750,000 to $1 million in life insurance death benefits,” Buenger says. “This death benefit should be large enough to cover [all] of your final expenses and funeral costs, pay off debt that includes any outstanding mortgage balance, automobile loans, credit card debt, and student/education loans, and cover your loss of income for a significant number of years.” Get life insurance quotes Whether you request a life insurance quote online, over the phone, or in person, you can expect the process to be relatively short. You will be asked a series of brief questions related to your health, occupation, financial assets, and more. You should get quotes from at least three to five insurers to make sure you’re getting the best possible price for your profile. Some insurers will charge you more than others, so make sure to compare costs. After comparing quotes, you can submit an application to the insurer of your choice. “Once approved, your policy is often issued within a few days and will be put into effect upon the insurance company receiving your first payment,” says Jake Irving, owner of Willamette Life Insurance. Premium costs vary based on many factors, including age, health and gender. Unlike other types of insurance, life insurance companies don’t consider your ZIP code when setting premiums. QuickTake How to get life insurance if you're uninsurable Who's who on a life insurance policy The life insurance contestability period: What you need to know What happens to the cash value of my whole life insurance policy when I die? Is accidental death and dismemberment insurance right for you? How to find a lost life insurance insurance policy Comprehensive guide to life insurance: What it is and how it works How to make sure you have enough life insurance What is cash value life insurance and how does it work? How to read your life insurance policy Life insurance riders: What they are and how they work Guide to life insurance for transgender applicants Understanding your life insurance policy options What is a life insurance beneficiary? Family caregivers guide to insurance: What you need to know How life insurance works for high-net-worth individuals Combination life insurance or long-term care: Make the right pick How to use your insurance to help your adult children Covid-19 and life insurance: What you need to know? 10 ways to save money on life insurance When to reassess your life insurance needs The basics of return of premium term life insurance Life insurance for new parents Life insurance for people with pre-existing conditions Guide to life insurance for children Can I change my insurance plan if I get pregnant? | Insure.com 5 questions to ask before you buy term life insurance Life insurance trusts for child beneficiaries The most expensive medical conditions for life insurance buyers Using life insurance to fund retirement The most common mistakes people make when choosing their life insurance beneficiaries What to do if you get declined for life insurance The advantages of survivorship life insurance policies Life insurance for people with risky occupations What is guaranteed issue life insurance? What is an accelerated death benefit rider and how does it work? What is a contingent life insurance beneficiary? Life insurance for women Can you avoid estate taxes with a life insurance trust? What are per capita and per stirpes life insurance beneficiaries? Why it’s important for mothers, especially single mothers, to have life insurance Do I need a life insurance trust? What is an irrevocable life insurance beneficiary? Life insurance for parents How does the life insurance underwriting process work? How much life insurance do you need? Combination life insurance merges long-term care with your policy What is simplified issue term life insurance? Is life insurance taxable? How to convert a term life policy to permanent life insurance Life insurance tax surprise: The unholy trinity How life insurance rates are determined How to do a needs analysis before you buy life insurance Sports that could knock you out of contention for life insurance Variable life and variable annuity sub-accounts: The more the merrier? See more > How to compare life insurance companies Gather at least a few quotes from different life insurers so that you can make an apples-to-apples comparison. To help narrow down the right policy and company for you, Friedlander advises following these criteria: Product: Choose a company that offers the policy and features that meet your needs. Company identity: Make sure you know the full name, home office location, and affiliation — if any — of any insurer you consider. Financial strength: “Life insurance is a long-term arrangement. There is no guarantee for life insurance policyholders similar to that provided for bank accounts by the Federal Deposit Insurance Corporation. So select a company that is likely to be financially sound for many years by using ratings from independent rating agencies, such as A.M. Best, Fitch, Moody’s, and Standard & Poor’s,” he says. Market ethics: Find out if the company abides by the principles and codes of conduct of the Insurance Marketplace Standards Association. Advice and service: Prioritize a life insurance company with strong customer service and check third-party ratings from agencies like J.D. Power for customer satisfaction insights. Claims: Look for an insurer with a smooth claims process and check third-party ratings from agencies like the NAIC. “Your state insurance department will be able to tell you if the company you are considering doing business with has had many consumer complaints,” Friedlander adds. Cost: Premiums can vary widely among companies. Compare quotes from multiple companies, ensuring you balance affordability with the right amount of coverage and benefits for your needs. How to prepare for the life insurance application Several things are required to complete a life insurance application. Be sure to gather the following before applying: Name, address, phone number, and date of birth State and country of birth Citizenship, gender, and marital status Occupational status, including details of your job responsibilities and salary Net worth Driver’s license number Social Security number Health history information and physician contact information Credit card or bank information for payment (when you are ready to purchase) “Be as honest as possible during the application process. Most insurance companies have ways of finding out medical backgrounds. If their search does not match up with what you indicated in the application, your policy may get denied,” recommends Voegele. Frequently Asked Questions What is the best life insurance company? The best life insurance company for you is one that offers a policy that caters to your unique needs, not just one that quotes the lowest price. It pays to shop around among different carriers and research them carefully before making a decision — whether you’re looking for the most affordable or most comprehensive life policies. To help guide your choice, check out Insure.com’s list of the Best Life Insurance Companies. Why should I buy life insurance? Life insurance can help your long-term financial strategy and offer protection for your loved ones. Also, life insurance provides income replacement if you were to die. If you were to die, your family would be burdened not only with grief but potentially a mortgage, education costs, credit cards bill and other loans. Your loved ones won’t have you there to help pay those bills. So, you may find you need life insurance to offer you peace of mind and provide for your beneficiaries. Buying life insurance for yourself can set into place a safety net for your loved ones if the unthinkable happens. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Erik MartinContributing Researcher | . .Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com. Related Articles How much term life insurance costs By Huma Naeem The 10 largest life insurance companies By Chris Kissell How to get life insurance if you’re uninsurable By Penny Gusner What to avoid before the life insurance medical exam By Desiree Ghazi Life insurance for people with dementia By Satta Sarmah-Hightower Life insurance calculator: How much life insurance do you need? By Huma Naeem On this page How to shop for a life insurance policyAssess your life insurance needsGet life insurance quotesHow to compare life insurance companiesHow to prepare for the life insurance applicationFrequently Asked Questions ZIP Code Please enter valid ZIP See rates