How to Buy Life Insurance: Tips on Finding the Right Policy
Buying life insurance doesn’t have to be complicated. Once you understand what to buy, how much coverage you need, and where to purchase it, the process becomes far more manageable. This step-by-step guide explains how to buy life insurance, compare options, and get coverage in place with confidence.
Key Takeaways
Buying life insurance starts with identifying how much coverage you need, how long it should last, and what financial risks you want to cover.
Your age, health history, and underwriting path all influence how easy it is to get approved and how much you’ll pay.
Choosing the right type of life insurance depends on how long you need coverage and what role it plays in your plan.
Many applicants can get life insurance without a medical exam, depending on the coverage amount and how the insurer evaluates risk.
Essential Life Insurance Terms for New Buyers
Before you buy life insurance, it helps to understand a few basic terms you’ll see throughout the application and policy documents you’ll get from the life insurance company. These definitions cover the most common language new buyers encounter when comparing coverage and completing a purchase.
- Term Life Insurance: A type of life insurance that provides coverage for a specific period, such as 10, 20, or 30 years. If you pass away during the term, the policy pays a death benefit; if the term ends and you’re still living, coverage typically expires.
- Whole Life Insurance: A form of permanent life insurance that provides lifelong coverage as long as premiums are paid. Whole life policies include a cash value component that grows over time at a rate set by the insurer.
- Universal Life Insurance: A type of permanent life insurance that offers lifelong coverage with flexible premiums and death benefits. Universal life policies include a cash value component that earns interest based on policy performance and funding choices.
- Premium: The amount you pay to keep your life insurance policy active. Premiums are usually paid monthly or annually and are based on factors like age, health, coverage amount, and policy type.
- Coverage Amount (Death Benefit): The amount of money the insurance company pays to your beneficiaries if you pass away while the policy is in force. This money can be used for any purpose, such as replacing income, paying debts, or covering final expenses.
- Policy Term: The length of time a term life insurance policy provides coverage, such as 10, 20, or 30 years. If the term ends and you’re still living, coverage typically expires unless the policy includes renewal or conversion options.
- Cash Value: A feature of permanent life insurance policies that allows a portion of your premium to build savings over time. Term life insurance does not include cash value.
- Riders: Optional features you can add to a policy that change or expand how it works. Common riders include conversion options, waiver of premium, or child coverage, and in most cases, must be added when you buy the policy.
- Beneficiary: The person or people you name to receive the death benefit when you die. You can usually update beneficiaries at any time.
- Grace Period: A short window, often around 30 days, after a missed premium payment during which coverage remains active and the payment can still be made.
- Free-Look Period: A limited time after purchasing a policy, commonly 10 to 30 days, when you can review the coverage and cancel for a full refund if it doesn’t meet your needs.
- Underwriting: The process insurers use to evaluate an application and determine eligibility and pricing. Depending on the policy type, underwriting may involve reviewing basic application information, health questions, or additional data, and not all policies require the same level of review.
Key Factors to Evaluate Before Buying Life Insurance
Before purchasing life insurance coverage, it helps to step back and look at a few personal and practical factors that shape your options. These considerations can help determine how much life insurance makes sense and what you’ll pay for it.
- Current Age: Age plays a major role in how life insurance is priced. In general, buying earlier can mean lower premiums and more coverage options, since insurers are assessing risk over a longer time horizon.
- Medical History: Your health history can influence eligibility and cost, including for many no-exam policies. Health conditions, medications, and lifestyle factors may affect underwriting outcomes and available options. Some policies, such as guaranteed issue, don’t use health information for approval but often come with lower coverage limits or higher costs.
- Financial Needs and Dependents: Consider who relies on your income and what expenses would remain if you weren’t there. This includes everyday living costs, housing, childcare, education, and any outstanding debts you’d want covered.
- Insurer Reliability and Financial Strength: Life insurance is a long-term commitment, so the insurer’s financial stability matters. Looking at an insurance company’s financial strength ratings can help you assess its ability to pay claims in the future.
> Read: Reasons Life Insurance Won't Pay Out
5 Simple Steps to Get Life Insurance
As you start to shop for life insurance, breaking down the process into a few clear steps can help. This approach makes it easier to choose the right coverage, compare options, and move from getting a quote to having an active policy.
Step 1: Decide How Much Life Insurance You Need
First, consider what the coverage is meant to protect. Many people start with income replacement, but it also helps to factor in outstanding debts, housing costs, and future expenses like education. The goal is to determine a realistic estimate of what your family would need to stay financially stable if you weren’t there. A life insurance calculator can help guide you.
Step 2: Choose the Right Type of Life Insurance
Next, decide which type of policy fits your needs and budget.
- Term life insurance is a popular choice because it’s straightforward and cost-effective. A term life policy offers coverage for a set period, such as 10, 20, or 30 years.
- Permanent options like whole or universal life provide lifelong coverage and include a cash value component, but typically come with much higher premiums.
Choosing the right type depends on how long you need coverage and what you want the policy to do.
Step 3: Compare Quotes From Multiple Insurers
Rates can vary from one insurer to another, even for the same coverage. Comparing life insurance quotes helps show how different companies price your age, health profile, and coverage needs. It’s also worth looking beyond the monthly premium to consider insurer financial strength and policy features. Ease of ongoing policy management matters too, including whether changes can be handled online or require working through an agent.
Step 4: Apply and Complete the Underwriting Process
Once you’ve chosen a policy, you’ll complete an application with basic personal and health information. Depending on the policy and coverage amount, underwriting may involve health questions, data review, or a medical exam. Many modern applications use accelerated underwriting, which can shorten the process and, in some cases, eliminate the need for an exam.
Step 5: Review the Policy and Activate Coverage
After approval, review the policy details carefully, including coverage amount, term length, riders, and exclusions. Coverage typically begins only after you sign the policy documents and pay the first premium. Once that’s complete, your life insurance protection is officially in place.
How to Buy Life Insurance Without a Medical Exam
Not all life insurance policies require a medical exam. Depending on the coverage you’re applying for and how the insurer evaluates risk, approval may happen through one of these no-exam pathways:
- Accelerated Underwriting: Insurers evaluate your application using health questions combined with third-party data, such as prescription history and available medical records. This approach can speed up approval and avoid a medical exam for many applicants, while still allowing for higher coverage amounts and more competitive pricing than other no-exam options. If the review doesn’t provide enough information, additional records or a medical exam may still be required.
- Simplified Issue: Simplified issue coverage is typically based on answers to a limited set of health questions, without pulling medical records or other external data. Because the insurer has less information to assess risk, coverage limits are often lower and premiums may be higher than options reviewed through accelerated underwriting. Depending on the insurer, simplified issue coverage may be offered as term or permanent insurance.
- Guaranteed Issue: Guaranteed issue coverage is offered without health questions or medical exams. These policies are typically structured as smaller permanent policies, with lower face amounts and higher costs. They’re generally intended for buyers who may not qualify for coverage that involves health-based underwriting.
Expert Tip
How can I ensure I buy the right amount of life insurance coverage without overpaying?
Start by taking a good look at your existing situation, and think about what would happen if you were no longer here. Add up what would need to be protected, such as income for a surviving spouse, remaining debt balances, and specific goals like education or ongoing care.
Then pressure-test the number by asking what expenses would realistically change or disappear. Finally, compare how different policy types and insurers price the same coverage amount so you’re paying for protection you’ll actually use, not excess coverage you don’t need.
Senior Director Life Underwriting
Where to Buy: Digital Platforms vs Traditional Agents
Before buying life insurance, it’s worth considering how you want to shop for coverage. The experience, speed, and level of guidance can vary depending on whether you work through an online marketplace or a traditional agent.
Digital Platforms
Digital platforms allow you to shop, apply for, and manage life insurance policy online, often with faster approvals and fewer steps. These platforms typically make it easier to compare quotes across insurers, complete applications digitally, and track your policy over time. Many use accelerated underwriting, which can shorten the approval process and, in some cases, eliminate the need for a medical exam.
Traditional Agents
Traditional insurance agents work directly with you to recommend coverage and guide you through the application process. This approach can be helpful for buyers with complex medical histories, business ownership considerations, or estate planning needs. Agents may also assist with coordinating multiple policies or explaining nuanced policy features, though the process can take longer and be more complex.
In general, digital platforms offer faster approvals and a more streamlined buying experience, while agents may be better suited for more complex situations or for people who need more guidance.
Carriers vs. Insurance Marketplaces
When buying life insurance, you may either work directly with a single insurance company or use an insurance marketplace that connects buyers with coverage from multiple carriers. Buying directly from a carrier means you’re limited to that company’s products and underwriting approach. Insurance marketplaces use digital tools to match applicants with coverage options across multiple insurers, rather than requiring them to compare carriers one by one.
Ethos uses a guided, digital experience to connect applicants with coverage behind the scenes. Instead of selecting a carrier upfront, buyers complete one application and are matched to an insurer based on their profile, helping streamline the buying process while still accessing coverage from multiple highly rated companies.
> Read:
Factors That Can Help You Get Better Life Insurance Rates
While every insurer evaluates risk differently, certain personal and lifestyle factors tend to improve your chances of qualifying for coverage and securing better rates. Understanding these ahead of time can help set realistic expectations when you apply.
Being Tobacco-Free
Not using tobacco or nicotine products is one of the biggest factors in qualifying for lower rates. Non-smokers typically have more policy options and significantly better pricing than applicants who use cigarettes, vaping products, or other nicotine sources.
Maintaining a Stable, Moderate BMI
Insurers often view a stable body weight within their preferred ranges as a sign of lower long-term health risk. Applicants whose BMI falls within those ranges may find it easier to qualify for coverage with fewer pricing adjustments.
Lower-Risk Lifestyle Habits
Regular exercise, moderate alcohol use, and avoiding high-risk activities can all support smoother underwriting reviews. These habits help insurers assess risk more confidently, which can translate into better eligibility and rates.
FAQs: How to Buy Life Insurance
The best age to buy life insurance is typically when you first have people or financial obligations that depend on you. In most cases, what prompts people to buy are life changes such as getting married, buying a home, or starting a family. From a pricing standpoint, younger applicants generally pay less and qualify for more options. Waiting can limit choices or increase costs, especially if health changes.
In many cases, yes. Insurers look at the type of condition, how severe it is, and whether it’s well-managed. Some applicants qualify through traditional or accelerated underwriting, while others may need to consider simplified or guaranteed issue options. Coverage may cost more or come with limits, but having a health condition doesn’t automatically prevent you from getting life insurance.
Approval timelines vary based on the underwriting path. Some applicants are approved in just days through accelerated underwriting, while others may wait several weeks if additional medical records or exams are required. Factors like coverage amount, health history, and responsiveness to requests can all affect timing.
It depends more on the policy and underwriting approach than the way you buy it. Online and agent-assisted applications can route you through different underwriting methods, which can affect both eligibility and the rate you’re offered, even with the same carrier.
The cleanest comparison is like-for-like: same carrier, same policy type, same coverage amount, and the same underwriting path. Independent brokers or digital services can also help you compare across multiple insurers, which may surface better pricing for some applicants.
The right choice depends on how long you need coverage and what you want the policy to do. Term life insurance is commonly used to replace income or cover major obligations for a defined period, such as raising children or paying off a mortgage.
Whole life insurance provides lifelong coverage and includes a cash value component, but at a significantly higher cost. Some people use term coverage to handle time-limited needs and permanent coverage for long-term planning, depending on budget and goals.
Yes, owning different types of life insurance is common and often intentional. For example, someone might buy a term policy to protect a major purchase like a house, and have a smaller whole life policy for lifetime coverage. People may also layer policies to cover different timeframes or goals. Insurers will still review total coverage amounts to ensure they align with income and financial need.
Most applications ask for basic personal information, employment details, and health history. Depending on the policy, insurers may also review prescription records, medical records, or request additional documentation. Not all applications require the same level of paperwork.
After approval, you’ll review the policy terms, sign the documents, and submit the first premium. Coverage typically starts once that payment is processed. From there, you can manage beneficiaries, payments, and policy details according to the insurer’s rules.
Author
Chief Underwriter
Expert review
Chief Compliance & Privacy Officer
Feb 20, 2026
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