This guide is general information, not insurance or legal advice. Coverage, prices and rules vary by insurer and by state, so read your policy documents and check with your insurer, a licensed agent or your state’s department of insurance before you decide.
Key facts
- Before applying, you decide how much coverage you need, whether term or permanent coverage fits, and who your beneficiary will be.
- The medical exam usually takes 15 to 45 minutes, happens at no cost to you, and can often be done at your home or workplace.
- Underwriting reviews your age, health, family history and lifestyle to set your final premium, which can differ from the initial estimate.
- Most states require a free-look period after delivery of the policy, though the length varies by state, so check your state insurance agency’s rules.
- If you are rated or declined, you can still explore other options, including policies with simplified or no health questions, which usually cost more.
Buying life insurance for the first time can feel like a black box. You fill out forms, talk to a nurse, wait, and then either get a price you did not expect or a request for more information. The process is actually a series of well-defined steps, and knowing what each one involves makes the whole thing easier to plan for.
What You Decide Before You Apply
Three decisions shape everything that follows, and it pays to make them before you start filling out applications.
- How much coverage. This is the amount the policy will pay when you die, sometimes called the death benefit. A common starting point is to think about what your household would need to replace: income, debts, and future costs. Our guide on how much life insurance you need walks through that math in detail.
- What kind of policy. Term life insurance covers you for a fixed period, typically 10 to 30 years, and premiums are typically less expensive than permanent coverage. Permanent policies, such as whole life, are designed to last your whole life and can include a cash value component. The tradeoffs are laid out in our comparison of term vs. whole life insurance.
- Who receives the money. The beneficiary is the person or entity the insurer pays. You will name at least one on the application, and you can change it later.
The idea behind all of it is simple. Insurance works by pooling risk, so many people pay premiums and the insurer uses that money to pay the losses of the few who need it. Your premium is your share of that pool, sized to your own risk.
The Application: Questions You Will Be Asked
The application starts with a questionnaire about your health, medical history, prescriptions, lifestyle and habits. Expect questions about:
- Your age, height and weight
- Whether you smoke or use tobacco, which has a large effect on price
- Medical conditions you have been diagnosed with, and medications you take
- Your family’s medical history
- Hobbies and occupations that carry extra risk, since premiums are based in part on factors like these
Answer accurately. Insurers use these answers, along with the exam results, to cross-check the information and prevent fraud. An inaccurate answer can cause problems for a claim later, so when a question is unclear, ask the agent or the insurer to explain it rather than guessing.
The Medical Exam, and When It Is Skipped
Many traditional policies require a medical exam, sometimes called a paramedical exam. It is a routine assessment, much like a yearly checkup, and the insurer arranges and pays for it. Many companies let you choose between meeting the examiner at your home or at your workplace.
The exam usually takes 15 to 45 minutes and combines a short medical history questionnaire with basic measurements such as height, weight and blood pressure, plus blood and urine samples for lab testing. The tests look for conditions that can affect life expectancy, such as cardiovascular issues, tobacco use or signs of chronic conditions.
You cannot study for it, but a few simple steps help the results reflect your actual health:
- In the 24 hours before the exam, limit salt and high-cholesterol foods and avoid alcohol
- Drink plenty of water
- Get a good night’s sleep
- Avoid strenuous exercise starting roughly 12 hours before, since it can temporarily raise your blood pressure or pulse
Have your prescription dosage information on hand if you take medications.
Smart tip
The exam works in your favor if you are in good health. Applicants in good health typically qualify for lower premiums than they would under a policy where the insurer has to guess, so the exam can be worth the small inconvenience.
Some applications skip the exam entirely. Accelerated underwriting, offered by many insurers, uses the questionnaire and other data to decide whether an exam is needed. It may be skipped based on your age, health, or a lower coverage amount, while a large death benefit or a flagged health issue can still trigger one.
How Underwriting Sets Your Final Price
Underwriting is the insurer’s process of evaluating your risk and deciding whether to cover you, at what price, and on what terms. The word has old roots: in 17th century England, private investors signed their names under posted listings of marine voyages, stating the share of risk they would take on for a fee.
Today the process is less dramatic. An underwriter, or in many cases a set of guidelines applied to your file, weighs your age, overall health, family history and lifestyle habits to estimate life expectancy. The longer the estimated life expectancy, the lower the risk and cost to insure. The result is usually one of three outcomes:
- Approval at the quoted price, when your results match what the insurer expected
- A rated policy, meaning approval at a higher premium than the initial estimate because of something in your health or history
- A decline or postponement, when the insurer decides it cannot offer coverage right now
Your quoted price before underwriting is an estimate. The final premium can move once the exam results and any records are in.
The Free-Look Period: Your Chance to Change Your Mind
After you are approved and pay the first premium, the insurer delivers the policy. Most states require a free-look period at this point, which is a window during which you can review the policy and cancel for a full refund if it is not what you expected.
Rules vary by state, including how long the period lasts, so check with your state insurance agency for the specifics where you live. Use the time to read the policy itself, not just the summary. Confirm the coverage amount, the premium, the term length, the beneficiaries, and any exclusions or conditions you do not understand. If something looks different from what you were told, ask the insurer to explain it in writing.
What Happens If You Are Rated or Declined
A rating is not a rejection. It means the insurer will cover you at a higher price, sometimes with modified terms, because of something in your results. You can accept, negotiate by providing more context or records, or walk away during the free-look period.
A decline is also not the end of the road. Insurers differ in their underwriting standards, so one company’s decline does not mean every company will reach the same conclusion. Policies that ask fewer or no health questions are another path, though that convenience usually costs more per $1,000 of coverage because the insurer must assume applicants may have medical issues. If your situation is complicated, a licensed agent or a fee-only financial professional can help you understand the options without pushing one product.
Keeping Your Policy Active After You Buy
A life insurance policy only pays if it is in force when you die, so the work does not stop at approval. Pay premiums on time, and if money gets tight, contact the insurer before letting the policy lapse, since there are usually grace provisions and alternatives to outright cancellation.
Review the policy every so often and after big life events. A marriage, a divorce, a birth or a death in the family are all common reasons to update beneficiaries. Our guide to naming life insurance beneficiaries explains how to do that and why old designations cause problems.
The most sensible first step is a small one: sit down this week and estimate what your household would need if your income disappeared. That single number drives every decision that follows, and our guide on how much life insurance you need can help you work it out.
Questions we hear
Do I have to pay for the life insurance medical exam?
No. The insurer arranges the exam through a paramedical testing company and pays the cost. You only choose the time and place, which is often your home or office.
How long does the whole buying process take?
It varies by insurer and by how much health information they need. Policies that skip the exam or use accelerated underwriting can move faster, while fully underwritten policies wait on lab results and records.
Can I get life insurance without a medical exam?
Some policies ask only a few health questions and some ask none at all. These can cost more per $1,000 of coverage, because the insurer has to assume applicants may have medical issues.
What is the free-look period?
It is a window after the policy is delivered during which you can cancel and get your premium back. States set their own rules on length, so confirm the details with your state insurance agency.