Getting Life Insurance is Easier Than You Think

We all hope to live a long and healthy life. But planning for the unexpected is one of the most important things you can do for the people who depend on you. Life insurance exists to provide financial protection for your loved ones if something happens to you and getting life insurance is easier than you think.

Here is a straightforward, step-by-step guide to obtaining life insurance coverage.

Step 1: Determine Your Budget and Coverage Amount

Before comparing policies, it helps to have a clear sense of how much coverage you need and what you can reasonably afford in premiums.

A commonly referenced guideline is to carry life insurance coverage of 10 to 15 times your annual income, though the right amount varies based on your individual circumstances. Factors worth considering include your outstanding debts, whether you have dependents, your income replacement needs, and any long-term financial obligations such as a mortgage or college funding goals.

A financial professional can help you work through these variables and arrive at a coverage amount that makes sense for your specific situation rather than relying on a general rule of thumb.

Step 2: Compare Different Policy Types

Understanding the main types of life insurance is essential before evaluating specific policies. The three most common are:

• Term life insurance provides coverage for a defined period, typically 10, 20, or 30 years. It’s generally the most affordable option and is well-suited for income replacement, mortgage protection, or covering a specific financial obligation over a set timeframe.
• Whole life insurance provides lifelong coverage and includes a cash value component that grows over time. Premiums are higher than term life but remain fixed, and the policy does not expire as long as premiums are paid.
• Universal life insurance is a form of permanent coverage that offers more flexibility in premium payments and death benefit amounts. It also builds cash value, with growth tied to interest rates or market indexes depending on the policy type.

Each type carries different features, costs, and trade-offs. Comparing them carefully,  ideally with professional guidance, will help you identify which structure aligns with your goals.

Step 3: Ask the Right Questions Before Choosing a Provider

Once you’ve narrowed down the type of policy you’re looking for, the next step is evaluating providers. Reputation, financial strength, and customer service record all matter. This is a long-term contract, and the company needs to be reliable when a claim is eventually filed.

Some questions worth asking include:

• What is the premium for this policy, and is it guaranteed to remain fixed?
• Are there riders available, such as disability waiver of premium, accelerated death benefit, or long-term care provisions?
• What is the company’s financial strength rating from agencies such as AM Best, Moody’s, or S&P?
• What is the expected approval timeline for this type of policy?

Step 4: Complete the Application

Most life insurance applications today are completed online, though some insurers still offer phone or in-person options. The application will typically ask for personal information, health history, lifestyle details, and financial information relevant to the coverage amount requested.

Review all materials carefully before submitting. It’s important to read the terms and conditions thoroughly, as they outline the coverage details, any exclusions, and the conditions under which a claim can be made. If anything is unclear, ask before signing.

Step 5: Understand the Underwriting Process

The underwriting process. The insurer’s review of your application and health risk has changed in recent years. While traditional underwriting once required a phone interview and an in-person medical exam including blood work and other screenings, accelerated underwriting is now widely available and has fundamentally changed the experience for many applicants.

Today, there are generally three underwriting paths:

• Accelerated underwriting: Available to many healthy applicants, this process uses data analytics, prescription history, motor vehicle records, and other digital sources to assess risk without a medical exam. Approval can take days rather than weeks, and some policies are approved within 24 to 48 hours. Coverage amounts available through accelerated underwriting have expanded considerably, with some carriers now offering it for policies up to several million dollars.
• Simplified issue: Requires answers to a health questionnaire but no medical exam. Approval is typically faster than traditional underwriting. Though coverage limits are generally lower and premiums may be higher to account for the reduced information available to the insurer.
• Traditional (fully underwritten): Involves a complete medical exam, blood work, and a thorough review of health history. This process takes longer, typically four to six weeks or more,  but generally produces the most competitive rates for healthy applicants and allows for the highest coverage amounts. Complex cases or those involving specific health conditions may still follow this path.

Which path applies to your application will depend on the policy type, coverage amount, your age, and the insurer’s guidelines. Your financial professional or the provider can walk you through what to expect before you apply.

A Few Final Reminders

Once your policy is issued, the work isn’t entirely done. Review your coverage annually. Any time a major life event occurs such as marriage, the birth of a child, a home purchase, a change in income, or retirement, your coverage needs change as well and your policy should reflect that.

Unsure of where you stand with life insurance? Heads over to our Protection Planning page and take our life insurance assessment quiz. Get your persona and score. Then set up an appointment with a qualified financial professional to help you evaluate your options.