A Step-by-Step Guide on How to Buy Life Insurance

Couple doing online research

Thinking about buying life insurance? As many as 132 million Americans already have, according to a 2015 fact sheet from LIMRA, a worldwide insurance and financial services research organization. Their reasons for wanting to buy life insurance are probably similar to yours — to help their loved ones pay for your final expenses and replace the lost income, so that they can continue to pay the rent or mortgage and other living expenses after you’re gone. 

Amongst those reasons, you’ll notice a central theme: People who buy life insurance want to make life easier for the people they leave behind. In turn, Gerber Life would like to make it easier for you to do precisely that. Read on for a step-bystep guide on how to buy life insurance.

Step 1: Estimate how much life insurance you need.

The life insurance depends upon your unique situation. Let’s say, for example, that you have children who depend on your income. You may want to have enough life insurance coverage to help replace that income after you’re gone. If you don’t have dependents, you may simply want to purchase enough coverage to help cover the cost of your funeral and outstanding debts.
 

Step 2: Research your life insurance options.

There are different types of life insurance policies available for adults, such as term life insurance, whole life insurance, and guaranteed life insurance for seniors. There are also whole life insurance policies designed specifically for children.

Your stage in life, not just your age, can help you determine which type of policy is best for you and your loved ones. For example, if you’re seeking life insurance only until your home mortgage is paid off, term life insurance might be the right fit since it provides coverage for a specified period of time, called a “term.” However, if you want lifelong coverage that can see you through from the birth of your baby to retirement and beyond, you may want to consider whole life insurance.

Step 3: Compare life insurance policies.

As with any purchase, you want to make sure that you’re getting the most value for your hard-earned dollar. The best way to do so? Request price quotes and then compare and contrast the policies and what they cover. Always be sure to compare apples to apples, and not just the price. All policies are not created equal, even if they’re both the same type of policy.


Step 4: Research the life insurance company.

Having trouble deciding between similar policies from a couple of life insurance companies? Check their track record. You want your insurance policy, and thus the company you bought it from, to still be around when you need it. To compare insurers, you can use resources such as A.M. Best’s Consumer Insurance Center, which provides impartial ratings of insurance companies based on financial stability, management and integrity.

Step 5: Read the fine print.

Before you sign on the dotted line, make sure to read the fine print. This includes any clauses attached to the policy contract that define how it works and what it will and will not cover.

Not sure what’s covered or need explanations? Don’t be afraid to ask questions, before buying a policy. Your family’s financial future could depend on it.

Was this article helpful?
51%
49%
View All Adult Life Insurance Articles

Swipe to see our products & get a free quote

Term Life
Term Icon

Term Life Insurance

Adults 18-70

Flexible coverage at a price that’s right for you.

Whole Life
Whole Icon

Whole Life Insurance

Adults 18-70

Keep it for life and build cash value.

Guaranteed Life
Guaranteed Icon

Guaranteed Life Insurance

Adults 50-80

Coverage for adults between 50 and 80 years old.

Accident Protection
Accident Icon

Accident Protection

Adults 18-69

Help protect loved ones without busting your budget.

Grow-Up
Grow-Up Icon

Grow-Up® Plan

Children 14 and under

Valuable protection that grows with your little one.

College Plan
College Icon

Gerber Life Insurance College Plan

Children 18 and under

Safe, secure and easy way to help pay for college.

Term Icon

Term Life Insurance

Get a free instant quote

Your quote

Get a Free Quote

Have you used tobacco? *

* Indicates required field
** Currently not available in New York

Still want to learn more, view the term life product page for more information.

Whole Icon

Whole Life Insurance

Get a free instant quote

Your quote

Get a Free Quote

Have you used tobacco? *

* Indicates required field
** Currently not available in New York

Still want to learn more, view the term life product page for more information.

Guaranteed Icon

Guaranteed Life Insurance

Get a free instant quote

Your quote

Start here. It's easy!

Let us customize a Guaranteed Life Insurance quote just for you.

* Indicates required field

Still want to learn more, view the term life product page for more information.

Accident Icon

Accident Protection

Get a free instant quote

Your quote

Get a Free Quote

Just enter the state you live in to get an instant quote.

* Indicates required field

Still want to learn more, view the term life product page for more information.

Grow-Up Icon

Grow-Up® Plan

Get a free instant quote

Your quote

Get Your Free Quote Now

See how little it costs to help protect your child

* Indicates required field

Still want to learn more, view the term life product page for more information.

College Icon

Gerber Life Insurance College Plan

Get a free instant quote

Your quote

Start here. It's easy!

Tell us about yourself, and we'll customize a plan just for you:

Child's Age *
Relationship to Child *
Your Age *

* Indicates required field

Still want to learn more, view the term life product page for more information.

Get inspired with our free e‑newsletter for parents

Get our free parenting e‑newsletter with:

– Parenting advice

– Money-saving tips

– Life insurance blogs

No thank you

By signing up, you agree to occasionally receive emails from Gerber Life. Unsubscribe at any time. View our privacy policy.

We’d like to notify you about updates, videos, new products and more.

Notifications can be turned off at any time in your browser settings.