How To Buy Life Insurance In 7 Steps Stress-Free

Life insurance is a crucial part of financial planning, especially if you have dependents and/or significant financial obligations. Understanding the process of purchasing life insurance may seem daunting initially. But when you look at it step-by-step it's really not as complicated or expensive as you may think. And the good news is that by the end of this article you'll know how to buy life insurance in 7 steps stress-free.

7 Stress-Free Steps To Buy Life Insurance

Whether you're thinking about buying a home and starting a family, already juggling work with 3 kids, or caring for a disabled relative, securing adequate life insurance coverage is essential. guide will walk you through seven key steps to help you navigate the life insurance purchase process with confidence. If you're ready to buy a policy right now, the best platform to shop, compare, apply, and purchase life insurance today is Policygenius.

1. Calculate Your Coverage Needs

Begin by determining the amount of life insurance coverage you need to safeguard your family's financial future. This calculation should encompass factors such as replacing lost income, settling debts, and covering ongoing expenses.

There's no exact formula to figure out how much life insurance you need because it's such a personal decision. However, there are various methods you can use to help you find a number and duration that's right for you. For example, one approach is to multiply your annual income by 10 to 15 to estimate the necessary coverage amount.

Another way is to look at your mortgage. Given mortgages are the largest debt most people carry, it's a good idea to match your life insurance term as close as possible to the years you have remaining on your mortgage.

Since you probably have other financial obligations in addition to a mortgage, another way to think about your duration matching is to think about how long it will take for you to pay off all of your outstanding debt.

Get further insights and calculation options in my detailed post on How Much Life Insurance Do You Really Need?

2. Choose A Policy Type

There are many different types of life insurance. But the type of policy that fits most people best is term life insurance. It's typically preferred for both its affordability and simplicity.

Term life insurance guarantees payment of a specified dollar amount within a documented time range, ie the term or time duration. The most common term lengths of term life insurance are 10, 20, and 30 years.

Once the end date arrives, the policyholder has the option to do nothing and have the policy expire, renew the policy for another term typically at a higher cost, or convert the policy to permanent coverage.

Conversely, permanent life insurance, which includes whole life and universal life policies, offers lifelong protection and investment opportunities. But it comes with higher premiums and may by more complicated than it's worth for your situation. When in doubt, stick buying a term life insurance policy.

3. Compare Companies and Quotes

Step three is to research and compare life insurance companies to find the best fit for your needs. Utilize online tools and independent brokers to gather quotes from multiple insurers. Consider factors such as financial stability, policy features, and customer service reputation when making comparisons.

The most efficient way to get competitive life insurance quotes today is to check online with Policygenius. It is the #1 life insurance marketplace where qualified lenders compete for your business. It's much easier to apply on Policygenius than to go to each carrier one-by-one to get a quote.

I've known the founders for years and they have truly built a fantastic resource for individuals. With so much uncertainty in the world today, if you have debt and/or children, getting life insurance is a must.

This image has an empty alt attribute; its file name is button_try-policygenius-for-free.png

4. Complete the Application Process

Next, prepare to undergo the application process–you can do this right on Policygenius' website–which involves providing personal information and undergoing medical evaluations. Here's a sample list of information you may be asked to provide

  • Age
  • Height
  • Weight
  • Previous and current medical diagnoses
  • Prescription history
  • Past surgeries
  • Family medical history
  • Lifestyle, habits, & hobbies
  • Contact information
  • Proof of identity

Be thorough and honest in disclosing details about your health, lifestyle, and habits, as these factors influence premium rates and policy approval. If you're tempted to lie, don't. Insurance fraud could result in your application getting rejected, make it harder to get approved for other policies, or result in denied claims for your beneficiaries.

5. Undergo a Medical Exam (if required)

Some insurers may require a medical examination to assess your health and determine premium rates. Alternatively, you may opt for a no-medical-exam life insurance policy, where medical history is evaluated instead. Ensure compliance with any requirements to expedite the underwriting process.

I was thrilled when I finally got affordable life insurance with no medical exam thanks to Policygenius.

6. Await Approval

By step 6 you're almost at the finish life. After you submit your application, you get to sit back and await approval from the insurance company while it goes through underwriting.

The underwriting process evaluates your risk profile and determines your final premium rates. If you have a complex medical history, be prepared for potential delays. Sometimes additional documentation or medical records may be requested which might add days or weeks to your wait time.

7. Review and Finalize Your Policy

The last step is to review and lock-in the life insurance policy after your application is approved. Upon receiving a policy offer, carefully review the terms and conditions. If everything is to your liking, then proceed with finalizing your purchase.

Ensure clarity regarding premium payments, coverage details, and beneficiary designations. Once you're satisfied, sign the policy documents, and remit the initial premium payment to activate your coverage.

Now you can really sit back and relax knowing that your loved ones will be taken care of.

Buying Life Insurance Is Pretty Stress-Free

Securing life insurance is a proactive step toward protecting your loved ones and securing their financial well-being in the event of your passing. By following the above seven steps, you can buy life insurance stress-free with clarity and confidence.

Also, remember to periodically review your coverage to ensure it aligns with your evolving needs and circumstances over time. Careful consideration and informed decision-making can help you achieve peace of mind no matter what the future may hold.

Protect Your Family And Get Life Insurance

If you're looking to get affordable life insurance, I highly recommend using Policygenius. In just minutes, they'll give you customized, real quotes. From there, you can choose the best policy that fits your needs, apply, and wait for approval.

Both my wife and I used Policygenius to boost our coverage and save on premiums. Now that we both have affordable life insurance, we feel so relieved. As parents who also have a mortgage, squaring these things away is huge.

Finally, I believe getting life insurance is one of the top financial moves I've made to reduce anxiety. This feeling of less stress is worth way more than the monthly premiums I pay for my new policy.

This image has an empty alt attribute; its file name is button_try-policygenius-for-free.png

For more nuanced personal finance content, join 60,000+ others and sign up for the free Financial Samurai newsletter and posts via e-mail. Financial Samurai is one of the largest independently-owned personal finance sites that started in 2009.