How to Buy Life Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

How to Buy Life Insurance

Step 1: Assess Your Needs

  • Identify your beneficiaries: Determine who will receive the life insurance payout. This could be a spouse, children, or other family members.
  • Calculate coverage amount: Consider debts, income replacement, and future expenses (like education) to estimate the coverage you need.

Step 2: Choose the Right Policy

Step 3: Compare Quotes

Step 4: Apply for a Policy

  • Complete an application form providing personal, health, and financial information.
  • Be honest in your application to avoid issues with policy approval or future claims.

Step 5: Undergo a Medical Exam (if required)

Step 6: Review and Sign the Policy

  • Once approved, review the policy details carefully.
  • Sign the policy and pay the initial premium to start the coverage.

Step 7: Update as Needed

  • Review and update your policy periodically or after major life events (e.g., marriage, childbirth).
How To Buy Life Insurance


Choosing the right life insurance policy involves assessing your needs, comparing options, and understanding policy details. Regular reviews ensure your coverage continues to meet your evolving needs.

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Frequently Asked Questions

What are three things you need to consider when buying life insurance?

To determine how much life insurance you require, consider various aspects, including your age, health condition, life expectancy, income, debts, and assets. Less coverage could be adequate if you have accumulated a significant retirement fund and have minimal debts.

How does buying life insurance work?

A life insurance policy is a contract between you and an insurance company. You are required to make regular payments known as premiums. In exchange, the insurance company guarantees to pay your beneficiaries a lump sum (a death benefit) after you pass away. Your beneficiaries can use the money in any way they desire.

What should you consider before you buy life insurance?

Carefully assess your financial situation and needs before purchasing a policy. Ask yourself the following questions: What costs and difficulties will your family face in the event of your passing? How will the loss of your income impact your family?

What happens if you lie on a life insurance application?

If an applicant offers false information on a policy application, the application may be denied, the policy may be canceled immediately with no warning, and the beneficiary of the applicant’s death benefit might be refused.

Why is an applicant’s signature required on a life insurance application?

Signatures are required on life insurance applications for a couple of reasons. The first is to confirm the applicant’s identity. We want to make sure that they are who they say they are, and this can be done through their signature. If someone is submitting an application for you without your knowledge, then there would be no way of confirming that it was really you since you can’t sign anything with your name if it isn’t yours! Another reason why signatures are required on life insurance applications is that we need proof of an agreement between the parties involved in the transaction. This helps protect both sides from not understanding what is being agreed upon or not agreeing at all.

What are the steps on how to buy life insurance?

Life insurance can be purchased by following a few simple steps. Firstly, evaluate your needs and determine the coverage amount required. Next, research and compare policies from various insurers to find the best option. Then, complete the application process, providing necessary information and undergoing any required medical exams. Finally, review the policy details and make the purchase.

What is the life insurance underwriting process?

The life insurance underwriting process is a thorough evaluation of an applicant’s health, lifestyle, and financial situation to determine their risk level. It involves reviewing medical records, conducting screenings, and assessing the applicant’s overall health. This process helps insurance companies determine the premiums and coverage amounts for the policy.

What are the steps to follow on how to shop for life insurance?

When shopping for life insurance, it’s important to consider factors such as coverage needs, budget, and the type of policy. Start by evaluating your financial situation and determining the amount of coverage needed. Then, compare quotes from different insurance companies to find the best rates and policies that align with your needs and goals. Additionally, it’s advisable to work with a licensed insurance agent who can guide you through the process.

What are the requirements for life insurance?

The requirements for life insurance typically include the applicant’s age, health condition, and lifestyle choices. Insurance companies may request medical exams and assess factors such as smoking habits, occupation, and travel history. Additionally, financial considerations like income and debt may be considered when determining eligibility and premium rates.

What process is used for medical underwriting for life insurance?

Medical underwriting for life insurance is a process where an insurer assesses an individual’s health condition before providing coverage. It involves evaluating medical records, conducting medical exams, and considering risk factors. The purpose is to determine the premium rates and eligibility for coverage based on the applicant’s health history.

What factors to look for when buying life insurance?

When buying life insurance, it is important to consider several factors. Look for a policy that meets your specific needs, such as term or whole life insurance. Additionally, evaluate the coverage amount, premium cost, and any exclusions or limitations. Research the insurance provider’s reputation and financial stability before making a decision.

What are the benefits of buying life insurance?

The benefits of buying life insurance include financial security for loved ones, peace of mind, and potential tax advantages. Life insurance can provide a financial safety net to cover expenses like mortgage payments, education costs, and funeral expenses. It can also serve as an inheritance, allowing beneficiaries to maintain their standard of living after the policyholder’s passing.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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