We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our content is backed by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Checkmark Expert verified
Bankrate logoHow is this page expert verified?
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Quick citation guide Select a citation to automatically copy to clipboard.APA: Gibson, J. (2024, April 01). How to buy life insurance in 8 steps. Bankrate. Retrieved September 10, 2024, from https://www.bankrate.com/insurance/life-insurance/how-to-buy-life-insurance/
Copied to clipboard!MLA: Gibson, Jessica. "How to buy life insurance in 8 steps." Bankrate. 01 April 2024, https://www.bankrate.com/insurance/life-insurance/how-to-buy-life-insurance/.
Copied to clipboard!Chicago: Gibson, Jessica. "How to buy life insurance in 8 steps." Bankrate. April 01, 2024. https://www.bankrate.com/insurance/life-insurance/how-to-buy-life-insurance/.
Copied to clipboard!
Written by
Jessica Gibson
Edited by
Natasha Cornelius, CLU
Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.
Reviewed by
Mark Friedlander
Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our Insurance Disclosure .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Bankrate logoThis content is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate.com. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
At first, thinking about how to get life insurance might seem overwhelming. If you’re not familiar with coverage types or how to buy life insurance policies, you might be tempted to put it off. Fortunately, Bankrate’s editorial team has done a lot of the legwork for you. We’ve put together a comprehensive guide for purchasing a life insurance policy and included valuable tips for selecting coverage amounts and saving on your premium.
Purchasing life insurance may seem complicated if you have never done it before. The first thing to know is that you can choose between permanent and term life insurance. Each comes with potential pros and cons, as well as a wide range of premiums.
Purchasing a life insurance policy has become easier as more insurance providers allow you to request quotes and buy a policy through their website. If you prefer to speak with a licensed agent, you can usually reach out over the phone or in person. Your insurance provider or agent will explain how to finalize your policy. For instance, you might have to get a medical exam, which must be completed in person.
If you are in the market for life insurance, here are the steps you may find helpful in purchasing a policy that is right for you.
Before you start requesting life insurance quotes, determine how much coverage is right for you. Specifically, decide why you’re purchasing life insurance. For instance, you might take out a policy to financially support your dependents after your death, or you might get life insurance in order to provide a financial gift to loved ones or cover funeral expenses. If you’re a high-net-worth individual, you could use life insurance to cover estate taxes or business succession planning.
Deciding why you’re getting insurance will help you determine whether a term or permanent policy works best for you. For example, if your goal is to have financial security while you pay down a mortgage, you might take out a term that would allow your beneficiary to pay the loan off after your death. If you’d like to leave a legacy, you might take out a policy with a higher death benefit.
Here are just some of the reasons people need life insurance:
Although there are many ways to calculate a potential coverage limit, one popular method is the DIME formula, which takes into account your debt and final expenses owed, total income based on what might be needed after your death, the amount left on your mortgage and any outstanding or expected expenses for your dependents’ education or schooling.
For a simpler method, you could take out a policy with a death benefit that equals 10 times your current income. However, this strategy doesn’t take your family’s living expenses into account. You might prefer to use an online coverage calculator that asks you to enter specifics like your expenses, mortgage or education costs to come up with a more accurate estimate. Some individuals prefer working directly with a financial advisor or Certified Financial Planner when determining their coverage needs.
There are two main types of life insurance: term and permanent. Within permanent insurance, the two primary types are whole life insurance and universal life insurance. Term life insurance is usually less expensive with fewer benefits, while permanent life insurance is typically more expensive as it offers more benefits. Here’s a closer look at what these policies cover and how they work:
Before you buy life insurance, you may want to do more research to find out which option will best meet your needs.
Next, start looking for life insurance companies that appeal to you. Remember that no two companies are the same. When choosing a life insurance company, search the website and look at the policy options. The best life insurance company for you may offer a combination of coverage options that fit your insurance needs and a positive customer service experience.
You can get an idea of a company’s level of customer service by reviewing J.D. Power studies for life insurance. Check for a company’s financial strength by reviewing ratings from AM Best, S&P and Moody’s. You may also want to research and compare different life insurance riders, which are add-on coverage options that could give you a broader range of protection. To help you save time, consider working with an independent agent or broker. They can run quotes from several providers on your behalf.
Once you have selected a handful of potential providers, you can get quotes from each company. This can be insightful, considering pricing can vary significantly amongst insurers. Generally, you’ll have to provide some personal information, like your name, address, age and gender, and you’ll most likely have to answer health history questions. For instance, you might have to say whether you’re a smoker, take medications, have had surgeries and answer questions about your lifestyle.
The insurance company then uses that information to calculate a life insurance rate for you. Bear in mind that this is just an estimate since the exact amount might change following a medical exam.
If you can’t get an instant quote on an insurance provider’s website, you might have to contact an agent for more information.
After choosing the provider that fits your needs, the next step is to fill out an application. You will be required to include basic personal information, as well as your Social Security number and driver’s license number. Additionally, you might be asked by the insurance company or your agent to submit an Attending Physician Statement (APS), which helps the insurance company verify your medical history (this form will be provided to you). Some life insurance applications can be filled out online, and it is usually a quick process. However, you should be prepared and have your medical information available, including a medication list and details regarding any chronic or pre-existing conditions.
After submitting an application, the insurance company might require a phone interview. The interview is mostly used to confirm the information you included on the application, but there may be some additional questions asked. For example, the interviewer may want to know more about your lifestyle and hobbies, your financial health, your income and any other life insurance policies you have. The interview is generally quick and will likely be scheduled shortly after submitting your physical application, if it’s required at all.
Many life insurance companies and policy types require applicants to get a physical exam before they can be approved for coverage. The life insurance medical exam is like a regular doctor appointment, but the insurance company’s medical examiner may be able to visit your home or office to see you. They will generally take your vitals, like weight and blood pressure, and draw blood. The exam usually takes about 30 minutes, and you may be able to schedule it during your phone interview.
Not all life insurance policies require a medical exam. If you meet certain requirements, you might be able to get approved for life insurance without a medical exam.
When the application process is complete, your job is done. The insurance company’s underwriter will take the information gathered from your application, phone interview and medical exam to determine if you’re eligible for coverage and, if so, what your premium is. As there is so much information to review, the approval process may take several weeks.
If you get approved and are happy with the quoted premium, you will be sent the policy documents to sign and approve. If you aren’t satisfied with the quoted rate, you can work with your agent to adjust the policy. For instance, you might change the death benefit/coverage amount or term length.
Once you’ve purchased the policy, you typically have a free look period that lasts 10 to 30 days, depending on the insurer, to confirm that you’re pleased with the policy. If not, you can get a full refund of the paid premium.
Compare life insurance providers quickly and easily
See which provider is right for you.
