Purchasing life insurance is an important financial move to protect your loved ones.
But you may be wondering – how complicated is the life insurance buying process?
Will it take weeks of paperwork and medical exams?
Or can you get covered with just a few clicks?
The good news is that it’s easier today than ever before to get life insurance coverage.
Here’s a look at what to expect as you shop for a policy.
Getting Quotes
The first step is requesting quotes for a term or permanent life insurance.
It only takes about 15 minutes to complete the quote process online or over the phone.
You’ll provide basic personal information like age, gender, and if you smoke.
You’ll also choose the amount of coverage you want and your preferred policy type.
After entering these details, you’ll quickly receive customized rate estimates.
Quoting is fast and comes with no obligation to purchase.
Gather results from about five companies to find your best options.
Compare not just premium costs, but also insurer financial strength ratings and customer satisfaction scores.
Filling Out Applications
Once you select an insurer, you’ll fill out their life insurance application form. This collects more details the company uses to evaluate and officially rate your policy.
Applications take around 15 to 30 minutes to complete.
They’ll ask for:
- Full legal name and contact information
- Date and place of birth
- Social Security number
- Employer name and occupation details
- Information on height, weight, and health habits like smoking
- Family medical history
- Beneficiary designation
- Budget details and existing insurance policies
Applications may be paper forms, but most companies allow online submissions for convenience.
Take your time providing accurate details to get the coverage properly issued.
Undergoing Underwriting
After receiving your application, the insurer will underwrite your policy. This means analyzing your specific risk factors to set accurate premiums and coverage terms.
The underwriting process usually involves:
MIB report check – The Medical Information Bureau maintains a database of applicant medical histories that insurers can access.
Prescription history review – Companies will look for any medications you take regularly.
Motor vehicle record check – They’ll examine your driving history and any related violations.
Streamlined no-exam underwriting is increasingly common for policies under $1 million.
For higher amounts, you may need to also provide blood and urine samples and results from a medical exam.
The easier underwriting gets, the faster you can complete the purchase process.
Many policies now issue in just days or weeks instead of months.
Signing Your Policy
The final step is signing documents to put your new life insurance coverage officially in force. This may require:
- Review your policy contract to ensure it matches what you requested.
- Signing forms to authorize automatic premium deductions from your bank account.
- Returning the documents by mail or electronically signing them online.
Once the insurer processes your signed paperwork, you’ll receive a final copy of your policy outlining the coverage details and effective date.
Place it with your other important documents and notify beneficiaries.
Ongoing Policy Management
One final convenience factor to consider is how easily the insurer makes ongoing policy management after purchase. Look for companies that provide:
- Online account access at any time to view your policy, change beneficiaries, and handle other tasks.
- Premium invoices and reminders are sent electronically to avoid missed payments.
- Hassle-free options to adjust coverage amounts as your needs change.
- Strong customer service you can depend on throughout the life of your policy.
The Bottom Line
While buying life insurance used to be a lengthy chore, insurers now streamline the process with online quotes, applications, and account management.
Today it may only take you a few weeks from starting quotes to getting covered.
Focus your shopping efforts on identifying the right type and amount of coverage for your situation.
Then select a top-rated insurer that checks all the boxes on reliability, cost, and convenience.
With a little time invested upfront, you can easily gain valuable protection for family finances.