How to Buy Life Insurance in 2025

Life insurance is one way to make sure your family is financially sound if something happens to you. The hard part is figuring out how to get life insurance: You need coverage that fits your life, not what your neighbor has.

In this guide, you’ll get step-by-step instructions for buying life insurance, learn the types available, how to calculate your coverage amount, what affects your rates, and what average costs look like.

How to get life insurance in 8 steps

Follow the eight steps below to get a life insurance policy:

1. Decide if you need life insurance. If other people depend on your income, you may need coverage.

2. Choose a type of life insurance. Options include term, whole, universal, and more.

3. Decide how much life insurance you need. Consider debts, income replacement, and future expenses.

4. Research life insurance providers. Look for financially stable companies.

5. Compare multiple quotes. Different companies offer different rates.

6. Complete an application. Be ready with your health and financial details.

7. Take a medical exam. Most policies require a health check.

8. Pay your premium. Make your first payment to activate your coverage.

1. Decide if you need life insurance

Most people need life insurance when others depend on their income to support a family, pay a mortgage, or cover college costs.

But life insurance decisions are about more than a paycheck — stay-at-home parents may need coverage, too. Think about it: child care, housekeeping, cooking, shopping, and managing the household all have financial value. If you were suddenly gone, the surviving parent may need to cover these costs while keeping their own job.

2. Choose a type of life insurance

Two main types of life insurance are available: term life and whole, or permanent, life.^[1] Term life is straightforward coverage for a set period, while whole life lasts your entire lifetime and builds cash value. Here’s a closer look at each type.

3. Decide how much life insurance you need

To calculate how much life insurance you need, the old rule of thumb was to multiply your income by 20.^[3] A more accurate approach is to calculate what your family needs.

The tricky part is to get enough coverage to take care of your family without overpaying for protection you don’t need.

Start by adding up the big stuff: your remaining mortgage, any other debts, and future expenses, like getting the kids through college. Then, think about how many years your family would need income replacement to maintain their lifestyle.

You must also consider hidden costs, like who would handle child care, housekeeping, and home maintenance if you’re not around.

4. Research life insurance providers

When figuring out how to get life insurance, you’ve got options. You can purchase a policy directly from an insurance company or work with an independent agent who can shop multiple insurers and help you compare policies.

Either way, customer service is an important consideration. We’ve researched the top five companies from the J.D. Power 2024 U.S. Individual Life Insurance Study:

• State Farm: Scores 699 out of a possible 1,000 for customer satisfaction. If you bundle life insurance with your State Farm auto policy, you can get a discount on both coverages.

• Guardian Life: Scores 685 out of a possible 1,000 for customer satisfaction. Guardian stands out for inclusive policies, including coverage options for people living with HIV — something many insurers won’t do.

• MassMutual: Scores 673 out of a possible 1,000 for customer satisfaction. MassMutual’s LifeBridge program provides free $50,000 10-year term policies to low-income parents, with benefits going directly to a trust for children’s education expenses.

• Northwestern Mutual: Scores 670 out of a possible 1,000. Northwestern Mutual has the lowest complaint ratio among these top five insurers, according to the National Association of Insurance Commissioners (NAIC).

• Nationwide: Scores 666 out of a possible 1,000 for customer satisfaction. Nationwide offers no-medical-exam term life coverage of up to $1.5 million for people who want to skip the health check.

5. Compare multiple quotes

Comparing life insurance quotes is like shopping for anything else — you can do it online or talk to an agent who’ll handle the details for you. Whichever path you choose, be honest when answering the questions they ask.

Sugarcoating your health history or “forgetting” to mention your mountain climbing hobby can get you a cheaper quote, but it could leave your family without coverage if they need to file a claim.

Here’s what companies typically ask for:

• Personal details: Age, gender, height, and weight

• Health history: Medical conditions, medications, and family health background

• Lifestyle information: Tobacco and alcohol use, hobbies, occupation, and driving record

• Coverage needs: Policy amount and term length

6. Apply for life insurance

The life insurance application has many of the same questions as the quote application, but it asks for additional details. The more accurate your information is now, the smoother things will go when the insurance company reviews everything.

Applying for life insurance happens in a few steps:

• Complete the paperwork. List your health history, doctors, and any other insurance policies you have.

• Name your beneficiaries. Decide who gets your policy’s death benefit and if you want backups (just in case).

• Arrange payments. Set up how you’ll pay your premiums — monthly, quarterly, or yearly.

Be prepared for a phone call. The insurance underwriter will probably want a quick chat to review your application and schedule your medical exam.

7. Take a medical exam

Most life insurance medical exams are simpler than your annual checkup. To prepare, avoid high-cholesterol foods, alcohol, and intense workouts the day before. It also helps to get a good night’s sleep and skip your morning coffee on exam day.

The insurance company usually sends a medical professional right to your home. The exam only takes about 30 minutes and has two parts: a questionnaire and a physical exam. They’ll start with some health history questions — be completely honest here about medications, recent hospital visits, and any medical conditions.

Then comes the quick physical, where they’ll check your height, weight, blood pressure, and pulse. They’ll also take blood and urine samples to check things like cholesterol, blood sugar, and nicotine levels.

8. Pay your life insurance premium

Your coverage will activate as soon as you make your first premium payment. Most companies give you a few ways to handle this: once a month, once every three months, or once a year. Monthly payments might be easier on your budget, but paying annually often lowers your premiums with a discount.

Factors that affect life insurance

Insurance companies look at specific pieces of your life to figure out what to charge you for a policy — each piece helps create the full picture of your coverage needs and costs.

Some factors you can control, others you can’t. Here’s a look at what goes into your premium calculation:

• 

  Age

  Your risk of health issues increases as you get older, which is why younger folks usually get lower rates.

• 

  Health history

  Current health, past conditions, and family history all play a part.

• 

  Lifestyle choices

  Smoking, skydiving, and racing motorcycles increase your risk of death — and your life insurance rates.

• 

  Career

  Some jobs are riskier than others. For example, office work typically means lower rates than construction or firefighting.

• 

  Policy type

  Term life is usually less expensive than permanent coverage, and the more protection you want, the bigger the price tag will be.

How much life insurance costs

Your personal story — everything from your birth date to your weekend hobbies — shapes your premium. But the good news is that term life insurance often costs less than people expect.

For a rough idea of what real people pay, take a peek at the rates below.

Whole life insurance gives you coverage that lasts your entire lifetime. It also includes a built-in savings account. It costs more than term life insurance, but it builds cash value over time. Your actual rate depends on your specific situation, but these rates provide a solid starting point.

How to get life insurance FAQs