How to buy life insurance
Buying life insurance means getting a quote from an insurer, answering health questions on an application, undergoing a medical exam if required, and signing the policy documents. The whole process usually takes two to six weeks. You pick a coverage amount (called the death benefit), choose between term life and permanent life, decide how long you want coverage, and then submit your information to the insurance company for review.
The insurer will assess your health, age, and risk factors to set your premium — the monthly or annual payment you make to keep the policy active. Once approved, you pay your first premium and the coverage begins. If you die while the policy is in force, the insurer pays the death benefit to whoever you named as beneficiary, and that money is not subject to income tax.
Key Takeaways
- You will need to choose a coverage amount (death benefit), a policy type (term or permanent), and a term length before you request a quote.
- The application requires personal health history, current medications, occupation, and sometimes permission for a medical exam or records review.
- Underwriting — the insurer's review of your health and risk — typically takes one to three weeks and determines your final premium rate.
- You can buy directly from an insurer's website, through an independent agent who represents multiple companies, or through your employer if they offer group coverage.
- Once approved and your first premium is paid, coverage is active immediately, and you can name or change your beneficiary at any time.
Decide what type and amount of coverage you need
Term life insurance covers you for a set number of years — typically 10, 20, or 30 years — and costs less per month than permanent coverage. If you die during the term, your beneficiary gets the death benefit. If the term ends and you are still alive, coverage stops and you get nothing back. Term is the most common choice for people protecting a mortgage, young children, or income replacement.
Permanent life insurance (whole life or universal life) covers you for your entire life as long as you pay premiums, and it builds cash value over time that you can borrow against. It costs significantly more than term but never expires. Permanent coverage makes sense if you have ongoing estate tax concerns or want a policy that lasts your whole life.
For the death benefit amount, most people use a rule of thumb: 5 to 10 times your annual income, or enough to cover your mortgage, replace lost income for your family for several years, and pay final expenses. A mortgage broker, financial planner, or insurance agent can help you work through the number based on your specific debts and dependents.
Gather the information you will need to apply
Insurance companies ask for your medical history, current health status, medications, and lifestyle habits. Have ready your date of birth, Social Security number, occupation, and income. You will also need to list any serious health conditions you have had, surgeries, hospitalizations, or ongoing treatments. Be honest and complete — insurers verify this information and can deny claims later if you omit or misstate facts.
If you smoke, drink heavily, or have a dangerous occupation or hobby (like piloting aircraft or professional racing), disclose it. These factors raise your premium but do not automatically disqualify you. You will also need to name your beneficiary — the person or people who receive the death benefit if you die. You can name a spouse, adult child, parent, trust, or charity, and you can change your beneficiary at any time.
Request quotes from multiple insurers
You can get quotes directly from insurance company websites (Term4Sale, PolicyGenius, and Ethos are common online platforms), through an independent insurance agent who works with multiple carriers, or through your employer if group life is offered. Online platforms often give you a quote in minutes based on your age and health history without a full application. An agent can walk you through options and answer questions but may take longer to produce quotes.
Compare the monthly or annual premium, the death benefit, the term length, and any riders (add-ons like waiver of premium if you become disabled). Rates vary significantly between insurers for the same person, so getting three to five quotes is worth the time. Once you pick a quote you want to move forward with, you will submit a full application to that insurer.
Complete the application and medical underwriting
The application asks detailed questions about your health, family medical history, medications, alcohol and tobacco use, occupation, and sometimes hobbies or travel. Answer every question completely and accurately. Lying or omitting information is called misrepresentation and gives the insurer grounds to deny a claim years later.
Depending on your age, health, and the death benefit amount, the insurer may order a medical exam. For smaller policies or younger, healthier applicants, they may only request permission to review your medical records with your doctor. A medical exam typically includes height, weight, blood pressure, blood work, and urine tests. The insurer pays for the exam and schedules it at a location near you. This process is called underwriting and usually takes one to three weeks.
Review and sign your policy documents
Once underwriting is complete, the insurer sends you the policy documents, which spell out the death benefit amount, premium, term length, when payments are due, what conditions void the policy, and your rights as a policyholder. Read through these carefully. The Declarations page summarizes the key terms. If anything is wrong — your name misspelled, the wrong beneficiary listed, the wrong coverage amount — contact the insurer before signing.
Sign and return the documents as instructed. Some insurers accept electronic signatures; others require a wet signature mailed back. Once the insurer receives your signed documents and your first premium payment, your coverage is active. You will receive a policy number and can log into an online account to manage your policy, update your beneficiary, or make premium payments.
Set up premium payments and keep your policy active
You choose how often to pay — monthly, quarterly, semi-annually, or annually. Most people set up automatic payments from a bank account so they do not miss a due date. If you miss a payment, most policies have a grace period (usually 30 days) during which you can still pay without losing coverage. After the grace period, the policy lapses and coverage ends.
If your policy lapses, you can usually reinstate it within a set window (often three years) by paying back premiums plus interest and submitting to a new medical exam. It is simpler to keep payments on track. Review your policy annually to make sure the death benefit and beneficiary still match your life circumstances. If you marry, have children, pay off a mortgage, or experience other major changes, you can increase or decrease your coverage or change your beneficiary without reapplying.
Frequently Asked Questions
Do I need a medical exam to buy life insurance?
Not always. Policies under $250,000 or $500,000 (the threshold varies by insurer) and applicants in good health often skip the exam. The insurer may only request permission to review your medical records. Larger policies or applicants with health conditions are more likely to need an exam. You can ask the insurer whether an exam is required before you apply.
How long does it take to get approved and have coverage start?
The typical timeline is two to six weeks from application to approval. Underwriting takes one to three weeks. Once you sign the policy and pay your first premium, coverage is active immediately. Some insurers offer expedited underwriting or same-day approval for smaller policies or very healthy applicants, but this is not standard.
What happens if I am denied coverage?
If an insurer denies your application, they must tell you why. You can appeal or ask for reconsideration, especially if new information has changed. You can also apply to a different insurer — underwriting standards vary. If you have serious health issues, a may provide issue policy (which does not require medical underwriting) is available but costs much more and has a lower death benefit cap.
Can I change my beneficiary after I buy the policy?
Yes. You can change your beneficiary at any time by contacting your insurer or updating it online through your policy account. The change takes effect once the insurer processes it. If you go through a major life event like divorce or remarriage, review and update your beneficiary to make sure it reflects your wishes.
What if I want to cancel my policy?
You can cancel anytime by notifying your insurer in writing or through your online account. Once cancelled, coverage ends and you receive no refund of premiums paid (unless you cancel within a free look period, usually 10 to 30 days after the policy starts). If your permanent life policy has built cash value, you may be able to withdraw or borrow against it before cancelling.