Tips on Finding a Convenient Life Insurance

Life insurance companies offer a variety of savings options to their customers. From simple “starter” plans to more comprehensive “high-yield” policies, life insurance is a safe way to protect your family and assets if you’re unable to work or decide not to care for yourself after an illness. A life insurance policy covers your loved ones should something happen to you. It can also help reduce the impact of a death on your family and friends. According to the Insurance Information Institute’s 2025 data, approximately 52% of Americans carry some form of life insurance coverage. If you don’t know where to begin, that’s ok. The best place to start looking into life insurance is with a local insurance company near you. Here are some tips on how to find the right policy for your needs:

1. Look Into Different Options

One of the easiest ways to find the best life insurance plan for your family is to look into different options. There are many other options for life insurance, and it can be hard to decide which one is best for you and your family. Before you sign up for a plan, it’s good to look into different options to see what else is out there. Major insurers like Northwestern Mutual, New York Life, and Haven Life each offer distinct plan structures worth comparing. Consider the following: Annual percentage rate (APR) — When you first decide how much you’re willing to pay per year, you’ll want to consider the APR. For example, if you choose that you wish to have $5,000 coverage, but the APR is 18%, then you’ll pay $45 per year. Minimum coverage — Some might consider this the most important, as it determines how much coverage you’re offered. It can make the difference in how much coverage you get and how much it costs. A common misconception is that everyone has to have coverage. If you’re underinsured, you might only need to purchase coverage that’s as much as you can afford to lose. Desired amount — This helps decide how much coverage you get and how much it costs. It’s important to remember that your policy will only payout if you select the maximum amount regardless of what amount is chosen. It’s a good idea to consider this amount as a percentage of your income, assets, or a specific dollar amount. The Consumer Financial Protection Bureau (CFPB) recommends reviewing policy terms carefully before committing to any coverage amount.

2. Assessing Your Needs

Once you’ve found the right policy for your family, it’s time to evaluate how well the policy is serving you. This is where assessment comes into play. Assessing your needs is the first step to finding the right policy for you. It’ll help you determine what coverage you need and should help ensure that you’re getting it. Tools like the Life Happens Life Insurance Needs Estimator can help you calculate an appropriate coverage amount based on your income, debts, and dependents. Your debt-to-income ratio (DTI) is also an important factor some insurers weigh during underwriting. Here are some common questions to help you get started: How often do I need to call claims? — This is the number you’ll be connected to in the case of an emergency. Get this dialed into your phone so you can quickly and easily be connected with any claims if something happens. How much coverage do I need? — This is the basic minimum coverage your policy should provide. While this is the most affordable option, some users report that it’s not enough coverage for their needs. According to LIMRA’s 2023 Insurance Barometer Study, the average coverage gap for underinsured American households is approximately $200,000. It’s essential to consider your specific circumstances here.

3. Shopping Around

Shopping around is another essential part of the assessment process. While most life insurance plans will provide coverage for people the same age as you, there are instances where you may need to get additional coverage for yourself or a family member. You can shop around and get quotes from different companies to find the best deal. Online comparison platforms like Policygenius and SoFi’s life insurance marketplace allow you to compare rates from multiple carriers side-by-side in minutes. Get honest and straightforward quotes, as some companies may try to upsell you on additional products or services. When shopping around, it’s essential to keep in mind that you want to find the best deal. Don’t get stuck with a plan that’s far too expensive for the coverage you want. The NAIC’s consumer portal also lets you verify that any insurer you’re considering is properly licensed in your state before you commit.

Life Insurance Policy Type Comparison

4. Get A Written Quote

Once you’ve found a plan that meets your needs and your state’s requirements, it’s time to get a written quote. This is how you’ll receive your policy in the mail. Get a written quote before you sign anything to know exactly what you’re getting yourself into. Most insurance companies will provide you with a written quote, the same process you used to shop around. Be sure to read the policy carefully to make sure you know all the coverage options and minimum coverage requirements. The USA.gov life insurance guide outlines your rights as a consumer when reviewing policy documents. Be sure to ask any questions you might have, but make sure you get a written quote before committing to anything. Keep in mind that your quoted rate may also be influenced by your FICO Score, health history, and the insurer’s internal underwriting model, as noted by Experian’s credit and insurance explainer.

5. Don’t Be Left Without A Policy.

Once you’ve received your policy in the mail, make sure you take the time to read it carefully. This is where you make sure you understand the coverage options and requirements. It’s essential to make sure that you’re getting the policy in writing so you know precisely what each coverage option entails and why it’s necessary. If you sign a contract without reading the procedure, you could be responsible for damages, loss, or even complications if a claim is denied. The Insurance Information Institute advises that policyholders always retain a physical or digital copy of their full policy documents. It’s essential to make sure you’re clear on all the coverage requirements before signing any paperwork.

When shopping for a new policy, look over the procedure thoroughly to make sure you understand it and its requirements. This will help you save money in the long run, but it’ll also make your experience with the company less stressful. Resources like the Federal Reserve’s consumer information center and the U.S. Department of Labor’s insurance resources can help you better understand your financial protections as a policyholder.

Frequently Asked Questions

What is the best type of life insurance for most people?

Term life insurance is the best starting point for most people. It provides a straightforward death benefit for a fixed period — typically 10, 20, or 30 years — at the lowest premium cost. A 20-year, $500,000 term policy averages just $26 per month for a healthy 35-year-old. Whole life or universal life may be appropriate if you need lifetime coverage and want to accumulate cash value over time.

How much life insurance coverage do I actually need?

Most financial planners recommend a death benefit equal to 10 to 12 times your annual income. However, your specific coverage amount should also factor in outstanding debts like a mortgage, future education costs for children, and your spouse’s income. Online needs calculators from tools like Policygenius or Life Happens can help you arrive at a more precise number based on your situation.

How do I find affordable life insurance rates?

The most effective way to find affordable rates is to compare quotes from at least three different insurers. Using online marketplaces like Policygenius or SoFi’s insurance platform makes this process fast and straightforward. Your rate will also depend on your age, health status, tobacco use, and the policy type you choose, so applying while you are young and healthy typically yields the lowest premiums.

Does my credit score affect my life insurance premium?

In many states, insurers are permitted to use a credit-based insurance score — which is related to but distinct from your FICO Score — as part of their underwriting process. A higher credit score generally signals lower financial risk and may contribute to a lower premium in states where this practice is allowed. Experian notes that maintaining a strong credit profile can have a positive effect on the insurance rates you’re offered.

What is the difference between term and whole life insurance?

Term life insurance provides coverage for a set number of years and pays a death benefit only if you pass away during that term. Whole life insurance provides permanent, lifetime coverage and accumulates a cash value component that grows on a tax-deferred basis. Term policies carry significantly lower premiums, while whole life policies cost more but offer both a guaranteed death benefit and a savings element.

What is an APR in the context of life insurance?

In life insurance, APR (Annual Percentage Rate) can refer to the effective annual cost of financing premium payments or the interest rate applied when borrowing against a policy’s cash value. It is an important figure to review when evaluating universal or whole life policies, as it affects how your out-of-pocket costs accumulate over time. Always confirm the APR and any associated fees directly with your insurer before signing.

Can I get life insurance if I have a pre-existing health condition?

Yes, many insurers offer policies to applicants with pre-existing conditions, though premiums may be higher and some coverage exclusions may apply. Guaranteed issue life insurance and simplified issue life insurance are two options that typically do not require a full medical exam. Working with an independent broker who can shop your application across multiple carriers is the best way to find coverage when you have a health history.

What happens if I miss a life insurance premium payment?

Most life insurance policies include a grace period — typically 30 days — during which you can make a late payment without losing your coverage. If payment is not received by the end of the grace period, your policy may lapse. Some whole life and universal life policies allow you to use accumulated cash value to cover missed premiums, which can prevent an unintended lapse in coverage.

Is life insurance regulated at the state or federal level?

Life insurance is primarily regulated at the state level. Each state’s department of insurance sets licensing requirements, approves policy forms, and handles consumer complaints. The National Association of Insurance Commissioners (NAIC) establishes model regulations that most states adopt to create consistent consumer protections across the country. The federal government’s role is generally limited to tax treatment of policy proceeds.

How do I file a life insurance claim?

To file a life insurance claim, beneficiaries typically need to submit a completed claim form, a certified copy of the death certificate, and the original policy documents to the insurer. Most insurers process straightforward claims within 30 to 60 days of receiving all required documentation. If a claim is denied, policyholders have the right to appeal the decision and can contact their state’s department of insurance for assistance.