Life Insurance Shopping Checklist

Shopping for life insurance can feel like a big, uncomfortable project. Breaking it into steps makes it manageable. Use this checklist to prepare, compare offers fairly, and review the policy before you sign.

Decide what you need

• Estimate a coverage amount — use a needs-based approach that accounts for income, obligations, and existing savings (see our coverage amount guide).
• Choose a time frame — how many years would your family need support?
• Pick a policy type to explore — term, permanent, or both.
• Set a monthly budget — what you can comfortably pay for many years, not just this year.

Understand the main policy types

• Term life — covers a set period, such as 10, 20, or 30 years. Usually costs less per dollar of coverage than permanent policies. Pays only if you pass away during the term.
• Whole life — permanent coverage with fixed premiums and a cash value component that grows over time. Usually costs more.
• Universal life — permanent coverage with more flexible premiums and death benefits; cash value growth depends on the policy design.
• Group life through work — often low cost or no cost, but typically tied to your job and may not be enough on its own.

Gather your information

• Personal details — date of birth, height, weight, and address.
• Health history — conditions, medications, surgeries, and your doctors’ contact information.
• Family health history — some applications ask about parents and siblings.
• Lifestyle details — tobacco or nicotine use, driving record, travel, and hobbies like scuba or aviation.
• Income and financial information — insurers may ask to confirm the amount is reasonable for your situation.
• Beneficiary names and details — full legal names and birth dates.

Compare offers fairly

• Use the same coverage amount and term length for every offer.
• Note the health rating class used — early price estimates are often based on an assumed class, and the final price depends on underwriting.
• Check each insurer’s financial strength rating — independent rating agencies publish these.
• Look up complaint records — your state’s department of insurance and the National Association of Insurance Commissioners provide complaint data.
• Confirm the agent or company is licensed in your state.

Review riders and options

• Waiver of premium — may cover premiums if you become disabled and cannot work.
• Accelerated death benefit — may allow early access to part of the benefit if you are diagnosed with a terminal illness.
• Conversion option — lets you convert term coverage to permanent coverage later without a new medical exam, within certain limits.
• Child or spouse riders — small amounts of coverage for family members.
• Return of premium — refunds premiums if you outlive a term policy; usually adds significant cost.
• Ask what each rider costs — and whether you truly need it.

Prepare for underwriting

• Ask whether a medical exam is required — some policies use no-exam underwriting, which may affect price or coverage limits.
• Schedule the exam for a morning — many people fast beforehand and avoid caffeine and heavy exercise.
• Answer every application question honestly — misstatements can lead to a denied claim later.
• Expect a records check — insurers may review prescription history, medical records, and driving records with your permission.

Before you sign

• Read the final offer — confirm amount, term, premium, and rating class.
• Review the contestability period — usually the first two years, when the insurer can investigate claims more closely.
• Check the suicide clause and exclusions — standard provisions that vary by state.
• Understand the free-look period — many states give you a window, often 10 to 30 days, to cancel for a refund.
• Keep existing coverage until the new policy is in force — avoid a gap.

After you buy

• Store the policy safely — and tell your beneficiaries or executor where to find it.
• Set up automatic payments — a lapsed policy can end your coverage.
• Review beneficiaries after major life events.

General education only — not personalized insurance, legal, or financial advice. CoverFind is not an insurance agency and does not sell policies.