The 3 Steps To Buy Life Insurance For The First Time

If you’re reading this, you’re probably on the quest to buying life insurance for the first time and you’re unsure where to start.

Well, for starters, you need to understand how life insurance works and whether it’s worth it. Once you know what your options are, it’s time to buy it.

For that part of the process, we’ve created this three-step guide which covers all bases so you would know your way around pushy salesmen:

• What’s the best coverage for you?
• Finding a trustworthy broker.
• Comparing rates

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The 3 Steps To Buying Life Insurance For The First Time

Truth be told, buying life insurance for the first time isn’t really rocket science despite the bad rep. So let’s get you started.

1. Decide What Type Of Policy You Need

The very first step is deciding these three things:

1. What type of insurance you want to buy: Term Life (Minority Mindset recommendation) or Whole Life;
2. How much insurance you want to buy: 10X your annual salary is the optimum;
3. What policy term length do you want to buy: A minimum of 10 years is always a good start.

The amount of insurance you purchase and your policy term length is flexible, and you can tailor these things to fit your personal needs and budget. 

However, what type of insurance you buy shouldn’t be up to debate, though, because:

• Term life insurance has a simple structure and it’s cost-efficient;
• Whole life insurance is a high-risk investment strategy for which you have to pay for the rest of your life.

Prices vary depending on factors such as your age and health, but if you’re a healthy 35-year old man:

• Whole life insurance costs about $800/mo for the rest of your life;
• Term life insurance costs roughly $30/mo or less, for the length of your term, for the same amount of coverage as the $800/mo whole life policy.

Once you research your options and decide what type, term, and coverage you want to buy, you’re ready for the next step.

2. Find A Trustworthy Life Insurance Broker

When it comes to life insurance, the best policy is the one that offers you the coverage you’re looking for at the lowest rates.

So how do you obtain rates and compare quotes without getting hounded by salespeople?

Trustworthy insurance brokers aren’t incentivized to sell you one policy over another, which means their interest in finding you the best policy at the best price is genuine.

They are professionals who research and make recommendations with the client’s best interest in mind.

For example, Policygenius insurance brokers provide quotes by phone or online, and their services are free.

With your well-being in mind, they’re more than happy to answer your questions and do research if needed, instead of earning a quick buck. 

Once you find an insurance broker you can trust, you’re ready to compare life insurance rates. 

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3. Compare Rates

Although you can always call an insurance broker on the phone, obtaining quotes online is the easier way these days and can be done in just three minutes.

For example, all you need to start the quoting process on Policygenius is your zip code.

Next, they ask if you want human support or if you’d rather fast-track your way to rate comparisons by filling out an online application.

If you decide to apply for life insurance online, you’ll need to enter some basic information like:

• Gender
• Date of birth
• U.S. Citizen?
• Are you married?

At this point, you’re only about 2 minutes away from receiving your quote.

Next come some basic health-related questions about yourself and your family, such as:

• Have you’ve been treated or diagnosed with any serious illnesses;
• Are there any serious illnesses in your immediate family;
• Have you had your license revoked in the past five years, received more than one ticket, or been in more than one accident.

After this, you’ll select the amount of coverage you’re interested in and choose the length of your term.

Once done, your quotes appear on the screen. And if you want to continue with the application, and officially become a life insurance first-time buyer, enter your name, address, email, and phone number. 

Congratulations! You’ve just taken the financially-responsible step of protecting your loved ones.

Example Life Insurance Quote For A First Time Buyer

Here’s an example of a life insurance quote for a 35-year old non-smoking man with no serious health issues and no tickets, accidents, or license revocations in the past five years.

Sample quote from March 2022:

• Term life insurance: 10 years
• Coverage: $1 million
• Married 35 years old male
• No health issues, tickets, accidents, or license revocations

Fixed monthly payments: $21-48 or yearly: $252-559

Buying Life Insurance For The First Time – Final Thoughts

Buying life insurance for the first time should be a pretty straightforward process, so follow these tips and stay away from any broker that’s making it feel like the opposite.

Know the term and coverage you want, and compare quotes to find the best offer. That’s it.

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