How to Get Life Insurance: A Step-by-Step Guide

Key takeaways

• Start the process by deciding on a coverage amount and policy type.
• Work with an experienced life insurance agent to identify companies likely to give you competitive quotes.
• Be prepared for the life insurance company to run extensive checks on your medical history and other records.

Advances in underwriting techniques and technology have made the life insurance buying process much easier and faster than has been in the past. Knowing how to purchase life insurance and some key strategies can help you find an insurance company and policy that best suit your circumstances and expectations.

1. Calculate how much coverage you need

Start the insurance-buying process by calculating how much life insurance you need. Consider why you are buying the coverage—whether it’s to replace income for your dependents, pay off outstanding debts, pay for future needs like college or final expenses, or leave a legacy for your kids or grandkids. There are many free life insurance calculators online, and your agent can also assist in calculating a sufficient coverage amount.

1. Determine what type of life insurance to buy

Then determine what type of life insurance you need. There are two main policy categories:

• Term life insurance is a cost-effective way to get coverage for a specific time period. It allows you to lock in rates for the level term period, such as 10, 20 or 30 years. At the end of the term, if you still need coverage, you can typically renew the policy every year at a higher rate or convert it to permanent coverage. (Or shop for a new policy.)
• Permanent life insurance usually costs more but provides lifetime coverage and includes a cash value account that can grow over time. There are several types of permanent life insurance, and life insurance cash value growth depends on the type you choose.

1. Compare life insurance quotes

Compare life insurance quotes from several companies to find policies and insurers best suited for your budget and risk profile. You can get initial quotes on an insurer’s website, a quote-comparison site or by working directly with an agent.

Independent agents, who work with multiple insurers, can gather quotes from several companies and direct you to companies that might be a good match for you.

As you collect quotes, “Prepare to be asked health, lifestyle and financial questions,” says Bob Bland, CEO of LifeQuotes, a national life insurance brokerage. “Answer every question honestly, especially about weight, tobacco use and health history, so you can get an accurate preliminary quote.”

As part of the quote-comparison process, also consider the following when identifying best life insurance company for you:

• Life insurance riders, or policy add-ons available—either for free or at an additional cost
• Term life insurance conversion features , which let you convert a term life policy to permanent insurance if your needs change in the future
• Complaint record , such as that made available by the National Association of Insurance Commissioners
• Insurer’s financial strength, as determined by ratings agencies such as AM Best
• Cash value growth , including guaranteed values and nonguaranteed projections for a permanent life insurance policy, which you can review in a life insurance illustration
• Internal policy chargesfor permanent life insurance, which can reduce cash value growth

1. Choose one company and submit an application

Even if you get quotes from several insurers, apply only to one company. Application activity is tracked by MIB, formerly known as the Medical Information Bureau, where insurers share information, and it will know if you’ve applied to other life insurance companies.

“Multiple applications at once in the marketplace can make it look like you are desperate or sick,” observes Bland.

At this time, expect to answer additional questions about your health, family medical history, driving record, hobbies, travel and finances.

It’s important to answer these questions truthfully, as they will be used to assess your risk and determine your final life insurance cost. Your answers to these questions might also determine the next steps in the process, such as whether you’re eligible for a no-exam life insurance application process.

In addition, Bland notes that you should “expect to be asked to sign a HIPAA consent form, which gives the life insurer permission to run extensive checks on your background as part of their underwriting.”

These checks include access to medical, prescription-drug, motor vehicle and other records. Be prepared to provide your driver’s license number and contact information for your doctors.

You’ll typically list your intended life insurance beneficiaries on the application.

1. Take a life insurance medical exam, if required

Fewer companies are requiring life insurance medical exams these days for eligible applicants thanks to the use of third-party data sources, such as prescription-drug databases and public records. But you might have to take one depending on:

• Your answers to the health questionnaire, especially questions about pre-existing medical conditions.
• Your desired coverage amount, often if you want more than $2 million to $4 million in coverage
• Your age, with eligibility for no-exam underwriting often ending for buyers between ages 50 and 70, depending on the insurer

See our tips for preparing for a life insurance medical exam.

1. Review the final quote and pay your premium

Once the life insurance underwriting process is complete, the insurer will issue a final quote and formal policy offer. If you’re pleased with the quote and wish to proceed, you can sign the policy documents.

At that point, you’ll also need to make your first premium payment. A policy is not in force until the critical first premium is paid, says Bland. Ask your agent to confirm that the coverage is in effect. “Oddly enough, life insurers don’t actually send ‘You are covered’ kinds of communications, so ask your agent for a confirmation,” he says.

It might take a few weeks for the policy to be issued if you have to take a life insurance medical exam. But many insurers let you pre-pay the anticipated premiums so you’ll have temporary coverage while you wait, says Douglas Miller, wealth management adviser with Northwestern Mutual in Campbell, Calif. If the final quote ends up being higher than expected, you can drop the policy and get the premiums refunded if you decide not to keep the coverage.

Most states require insurers to offer a “free-look” period, during which you can cancel coverage without penalty and receive a refund on premiums paid. The free-look period typically lasts from 10 to 30 days, but can vary, so always check with your insurer.

1. Get a copy of your new policy

You should receive the entire policy documentation, including coverage details, your premium schedule and beneficiary details. If you don’t automatically receive that information, request it from your insurer.

Bland recommends getting two copies of the policy. “Keep one for yourself in a safe place and ask the beneficiary to keep one,” he says. That will make it much easier for your beneficiaries when they need to submit a life insurance claim.

How long does the life insurance buying process take?

The life insurance buying process can take anywhere from a few minutes to several weeks, depending on the type of life insurance underwriting and whether the insurer needs additional information from you.

“Life underwriting has undergone massive modernization in the last seven years,” says Bland. “More and more insurers are now offering the convenience of instant underwriting, either online or during a single phone call.”

You can thank Covid-19 for new, speedier life insurance processes. During Covid, life insurance companies had to use new technology and resources to figure out how to assess risks and issue more policies without requiring a medical exam. “We had to pivot to electronic delivery of policies, and that was something we developed within a matter of weeks,” says Mehran Assadi, CEO of National Life Group. For example, National Life Group’s RapidProtect instantly pings prescription-drug records and other databases for underwriting after you complete a short questionnaire. Applicants “answer 17 questions and in a matter of minutes you are underwritten and the policy is electronically issued and delivered to you via email,” he says.

Issue time by type of underwriting

Q&A

Question: How do I figure out how much life insurance coverage I need? Short answer: Start by clarifying your goals: replacing income for dependents, paying off debts, covering future needs like college or final expenses, or leaving a legacy. Use a free life insurance calculator to estimate a sufficient amount, and ask an experienced agent to sanity-check the result.

Question: What’s the difference between term and permanent life insurance, and can I switch later? Short answer: Term life is typically the most cost-effective way to lock in coverage for a set period (e.g., 10, 20, or 30 years). After the term, you can usually renew annually at higher rates or convert to permanent coverage. Permanent life costs more, lasts for life, and builds cash value that can grow over time (growth depends on the policy type).

Question: Beyond price, what should I compare when getting life insurance quotes? Short answer: Look at available riders (add-ons), term conversion features, the insurer’s complaint record (e.g., via NAIC), and financial strength (e.g., AM Best). For permanent policies, review guaranteed and non-guaranteed cash value projections in a policy illustration and note internal policy charges that can reduce growth. Independent agents can gather multiple quotes and steer you to insurers suited to your profile. Be prepared to answer health, lifestyle, and financial questions honestly to get accurate preliminary quotes.

Question: Why should I apply to only one company, and what background checks should I expect? Short answer: Application activity is tracked by MIB, so multiple simultaneous applications can make you appear desperate or unwell. Expect detailed questions about your health, family history, driving, hobbies, travel, and finances. You’ll likely sign a HIPAA consent so the insurer can check medical, prescription-drug, motor vehicle, and other records. You may need to provide your driver’s license number and your doctors’ contact details, and you’ll list your beneficiaries. Honest answers determine your final rate and whether you qualify for no-exam underwriting.

Question: Will I need a medical exam, how long does the process take, and when is coverage active? Short answer: Many applicants now qualify for no-exam underwriting, but exams may still be required based on your health answers, higher coverage amounts (often above $2–$4 million), or age (no-exam options often end between ages 50 and 70, depending on the insurer). The process can take minutes (instant underwriting online or via a single call) to several weeks if more information or an exam is needed. Your policy isn’t in force until you sign and pay the first premium; some insurers allow pre-payment for temporary coverage while you wait. If the final quote is higher than expected, you can decline and get a refund, and most states provide a 10–30 day “free-look” period to cancel for a full premium refund.

Q&A

Question: Should I work with an independent agent or get quotes directly from insurers?

Short answer: Either works, but independent agents can save time by gathering quotes from multiple companies and steering you toward insurers that fit your health, budget, and risk profile. You can also get initial quotes on insurer sites or comparison platforms—just be ready to answer health, lifestyle, and financial questions honestly for accurate estimates.

Question: Beyond price, what should I compare when shopping for life insurance?

Short answer: Review available riders (policy add-ons), term-to-permanent conversion options, the insurer’s complaint record (e.g., via NAIC), and financial strength (e.g., AM Best). For permanent policies, scrutinize policy illustrations for guaranteed and non-guaranteed cash value growth and note internal charges that can reduce cash value.

Question: Why is it best to apply to only one company at a time?

Short answer: Application activity is tracked by MIB, and multiple simultaneous applications can make you appear risky or desperate. Choose one insurer to apply with, answer all follow-up questions truthfully, and list your intended beneficiaries. Your responses help determine the final rate and whether you qualify for no-exam underwriting.

Question: What background checks and paperwork should I expect during underwriting?

Short answer: You’ll likely sign a HIPAA consent so the insurer can access medical, prescription-drug, motor vehicle, and other records. Be prepared to provide your driver’s license number and your doctors’ contact details. These checks help the insurer assess your risk and finalize your premium.

Question: Will I need a medical exam, how long does the process take, and when is coverage active?

Short answer: Many applicants now qualify for no-exam underwriting, but an exam may be required based on your health answers, higher coverage amounts (often above $2–$4 million), or age (no-exam options often end between ages 50 and 70, depending on the insurer). The process can take anywhere from minutes (instant underwriting online or via a single call) to several weeks if more information or an exam is needed. Coverage isn’t in force until you sign and pay the first premium; some insurers allow pre-payment for temporary coverage while you wait. If the final quote is higher than expected, you can decline and get a refund, and most states offer a 10–30 day free-look period to cancel for a full premium refund.