What you need to do to get a life insurance policy

Getting a life insurance policy involves three main steps: choosing a type of policy, completing an application with medical and financial information, and undergoing underwriting — the process where the insurance company decides whether to approve you and at what price. Most policies take two to six weeks from application to approval, though some simplified policies can be issued in days. You do not need a broker or agent to buy directly, but many people use them because they can explain the differences between policies and help you compare quotes from multiple companies.

The process differs slightly depending on whether you choose term life insurance (coverage for a set number of years, usually cheaper) or permanent life insurance (coverage for your whole life, more expensive but builds cash value). Both require you to answer health questions, and both may require a medical exam. The company uses your answers and exam results to assess your risk and set your premium — the monthly or annual payment you make to keep the policy active.

Key Takeaways

  • You will need to provide your medical history, current health status, occupation, and sometimes financial information before the insurance company will issue a policy.
  • Most policies require a medical exam, though some simplified or may provide-issue policies skip the exam but charge higher premiums.
  • Term life insurance covers you for a specific period (10, 20, or 30 years) and costs less; permanent life insurance covers your whole life and costs more but builds cash value.
  • You can buy directly from an insurance company online or by phone, or work with an independent broker who can quote multiple companies at once.
  • Underwriting typically takes two to six weeks, and your policy does not become active until you pay the first premium and the company approves you.

Choosing between term and permanent life insurance

Term life insurance is the most common choice because it is the cheapest option. You pick a term length — usually 10, 20, or 30 years — and pay a fixed premium for that entire period. If you die during the term, your beneficiary receives the death benefit. If you outlive the term, the policy ends and you receive nothing. Term policies are straightforward: you know exactly what you are paying and for how long.

Permanent life insurance — which includes whole life, universal life, and variable universal life — covers you for your entire life as long as you pay the premiums. These policies are more expensive but they build a cash value component that you can borrow against or withdraw. Some people use permanent policies as an investment tool alongside life coverage, though the returns are typically modest. Permanent policies are better suited to people who want lifelong coverage or who have significant assets to protect across generations.

Most people starting out choose term life because it is affordable and straightforward. You can always convert a term policy to permanent later, and many term policies include a conversion option that lets you do this without another medical exam.

What information you will need to provide

When you apply, the insurance company will ask for your medical history, current health status, and lifestyle information. Be prepared to answer questions about any diagnosed conditions, medications you take, surgeries you have had, and whether you smoke. They will also ask about your family's medical history — whether parents or siblings have had heart disease, cancer, diabetes, or other serious conditions — because some conditions run in families and affect your risk profile.

You will also need to provide your occupation and work environment, because some jobs carry higher risk. You will need to list your beneficiary — the person or people who will receive the death benefit if you die — and their relationship to you. Some companies ask about your income and existing life insurance coverage to make sure the death benefit you are requesting is reasonable relative to your financial situation. This is called underwriting for insurable interest: the company wants to prevent people from buying policies on others as a form of betting or fraud.

Have your Social Security number, driver's license, and medical records available when you apply. If you see a doctor regularly, the company may request records from your doctor directly. You do not need to provide these yourself, but having them on hand speeds up the process.

The medical exam and underwriting process

Most traditional life insurance policies require a medical exam. The exam is usually simple and free: a nurse or technician visits your home or a local clinic, takes your height and weight, blood pressure, and pulse, and draws blood and urine samples. The exam typically takes 20 to 30 minutes. The insurance company pays for it, not you.

After the exam, the underwriting department reviews your application, medical records, exam results, and any other information they requested. They assess your health risk and decide whether to approve the policy, approve it with conditions (such as a higher premium), or deny it. This process usually takes two to six weeks, though some companies offer expedited underwriting that can shorten this to one to two weeks.

If the company denies your application or offers a premium much higher than you expected, you have options. You can ask for a detailed explanation of why, request reconsideration if you believe information was wrong, or shop with other companies — different insurers assess risk differently, and one company's decline does not mean you cannot get coverage elsewhere. Some companies offer may provide-issue policies that do not require a medical exam or health questions, though these charge significantly higher premiums and have lower death benefits.

Where to buy a life insurance policy

You can buy directly from an insurance company through their website or by calling their sales line. Major insurers like State Farm, Prudential, MetLife, and Nationwide all sell online and by phone. Buying direct is straightforward if you know what type and amount of coverage you want, and you can often get a quote in minutes.

You can also work with an independent insurance broker or agent. Brokers represent multiple insurance companies and can show you quotes from several at once, which saves time if you want to compare. Agents typically represent one company. Brokers and agents are paid by commission from the insurance company, not by you — the premium you pay is the same whether you buy direct or through a broker. Some people prefer working with a broker because they can explain the differences between policies and help you choose the right amount of coverage.

Online insurance marketplaces like PolicyGenius, Term4Sale, and SelectQuote let you enter your information once and receive quotes from multiple companies. These sites do not sell the policies themselves — they connect you to insurers or brokers — but they can speed up the comparison process.

Paying your first premium and activating your policy

Your policy does not become active until two things happen: the insurance company approves you and you pay your first premium. Most companies allow you to pay by bank account withdrawal, credit card, or check. Some offer a grace period — usually 30 days — during which you can pay the first premium after approval. If you die before paying, the policy is not in force and your beneficiary will not receive the death benefit.

Once you pay and the company confirms receipt, your coverage begins. You will receive a policy document in the mail that outlines the terms, your death benefit amount, your premium, and the conditions under which the company will pay out. Read this carefully and keep it in a safe place. Your beneficiary will need to know where to find it if something happens to you.

After your policy is active, you will receive a bill each month or year (depending on your payment schedule) reminding you when the premium is due. If you miss a payment, most policies have a grace period — usually 30 to 31 days — during which you can still pay without losing coverage. If you do not pay within the grace period, the policy lapses and you lose coverage.

What to do if you are denied or quoted a high premium

If an insurance company denies your application or quotes a premium that seems too high, do not assume that is your only option. Different companies use different underwriting standards, and one company's assessment of your risk may differ significantly from another's. Shopping with multiple companies often yields different results.

If you have a health condition that led to a denial or high quote, ask the company for a detailed explanation. Sometimes denials are based on incomplete or incorrect information that you can correct. You can also work with a broker who specializes in people with health conditions — they know which companies are more lenient with certain conditions and can steer you toward companies more likely to approve you.

may provide-issue policies are another option if you cannot get approved for standard coverage. These policies do not require a medical exam or health questions, so approval is nearly automatic. The trade-off is that premiums are much higher and death benefits are lower — often capped at $10,000 to $25,000 depending on the company. Some may provide-issue policies also have a waiting period, usually two years, during which the company will not pay the full death benefit if you die of natural causes (though they will pay if you die by accident).

Frequently Asked Questions

How much life insurance do I need?

A common rule of thumb is 10 times your annual income, though the right amount depends on your situation. Consider your debts (mortgage, student loans, credit cards), your family's living expenses, and any major costs you want covered (college for children, funeral expenses). A financial advisor or insurance broker can help you calculate a specific number based on your circumstances.

Can I get life insurance if I have a pre-existing health condition?

Yes, but your premium will likely be higher than someone without that condition. The company will ask detailed questions about your condition, how long you have had it, what treatment you receive, and how well controlled it is. Some conditions result in denial from standard insurers, but may provide-issue policies are available as an alternative, though at much higher cost.

What happens if I lie on my life insurance application?

If the insurance company discovers you lied or omitted material information, they can deny your claim or cancel your policy. This is called contestability, and most policies allow the company to investigate and contest claims within the first two years. Be honest on your application — the company will verify information through medical records and other sources anyway.

Can I change my beneficiary after I buy the policy?

Yes. You can change your beneficiary at any time by contacting the insurance company and submitting a change-of-beneficiary form. You do not need the old beneficiary's permission. This is useful if your circumstances change — for example, if you marry, divorce, or have children.

Do I need a broker, or can I buy directly?

You can buy directly from an insurance company if you know what type and amount of coverage you want. A broker is useful if you want to compare multiple companies quickly, if you have health conditions and need guidance on which companies to approach, or if you want help understanding the differences between policies. Brokers do not charge you directly — they are paid by commission from the insurance company.