Life Insurance How to shop for online life insurance Shopping for online life insurance is a quick and seamless process. Here’s everything you need to know. Written by Huma Naeem Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Posted on: August 9, 2023 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Buying life insurance online is very similar to buying a traditional policy. Before you get started, you need to figure out how much coverage you need. And once you know the death benefit amount and term length, you should compare quotes from multiple insurers to ensure that you get the best possible price. Finally, you should let your family know about the policy and leave behind written details, so they’re able to file a death benefit claim if you die. Regardless of the type of life insurance you buy, all these steps stand true. Where online life insurance differs, however, is in the actual application process. Instead of undergoing the phone interview or medical exam, you submit details about your background online. After you complete the application, you may receive an application decision in just minutes — though sometimes it can be longer. For many policies, this allows you to get coverage almost instantly. While the steps are similar to buying traditional life insurance, chances are, a little guidance can go a long way. Here’s how to shop for online life insurance and set your family’s financial future up for success. 1. Figure out how much life insurance you need Before you start shopping for coverage, you need to determine how much life insurance you need. If you buy too much, you’re overpaying, but if you don’t buy enough, your family’s financial health will be in jeopardy when you die. To figure out the exact amount of coverage you need, it’s best to talk to a certified financial planner or financial advisor. But, you can get a general idea by crunching some numbers yourself. Most people usually need 10 to 15 times their income in life insurance coverage. You can tally up a more precise amount by using the DIME method. When you’re using the DIME method, you tally up your: Debts: You’ll want your policy to cover any debts they’d have to pay off if you died. Income: Multiply your income by the number of years you plan to financially support your family. For example, if you have a newborn that you want to provide for until they turn 18, you’ll multiply your income by 18. Mortgage: Make sure your policy covers the balance left on your mortgage. Education expenses: If you plan to cover your children’s education expenses, you’ll want to incorporate those expenses into your policy. You’ll also want to determine how long you need coverage for, as you’ll likely have term length options. Some people only need coverage for 10 years, while others may need it for 30. Your term length should last longer than your longest financial obligation. 2. Gather all your important documents When you apply for online life insurance, you’ll be asked about your health history, prescriptions, smoking status, lifestyle choices, and more. Having documents such as your medical records handy ensures you can give the most accurate responses on your application. While you likely won’t be penalized for a small mistake, intentionally lying on your application can invalidate the policy down the line. You will also be asked to provide your Social Security number. 3. Compare quotes from multiple online insurers Each insurance company has its own underwriting department, which means they underwrite applicants differently than each other. While a medical condition or lifestyle choice may get you high premiums at one company, you may still get the most affordable rates at another. For this reason, it’s important that you don’t settle for the first quote you get. Instead, shop around and compare quotes from multiple insurers so that you can get the best possible price. 4. Apply and wait for an application decision Once you submit your application, you’ll likely receive an application decision within the hour — if not immediately. Online life insurance companies provide near instant approval, offering almost immediate coverage. Unless the insurer needs more information, you won’t have to wait long for the application decision. If you’re approved for coverage, you will also be notified of how much you’ll be charged for premiums. 5. Sign your electronic policy and pay your first premium If you’re comfortable with the terms offered by the online insurance company — namely, the cost of the policy — you’ll sign the policy and pay the first premium for your coverage to become active. Because you’re buying an online life insurance policy, all of this will be done completely online. You won’t need to print out any forms or call an agent to pay over the phone. 6. Tell your family about the policy and leave written details An online life insurance policy will only be able to provide financial support to your family if they file a claim when you die. For this reason, it’s important that you tell your beneficiaries about the policy. Without any knowledge of it, they won’t be able to get the funds that you secured for them. While you need to tell your family about the policy, you should also leave them written details with the policy information. This includes who the insurer is and what the policy number is, so that they can easily file a claim if you die. Many people leave this information in their will, but you can also leave a second copy elsewhere. Just make sure your family knows where to find the policy details. Shopping for online life insurance doesn’t have to be complicated. Our steps above prepare you for what to expect. Armed with this knowledge, you can shop for and find the best policy for you. Read more about online life insurance: What is online life insurance and how does it work? Types of online life insurance How to save on online life insurance Average online term life insurance rates Average online term life insurance quotes by age and gender How much is online term life insurance? × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Related Articles Can you hide smoking from life insurance companies? By Prachi Singh Whole life insurance: What it is and how it works By Nupur Gambhir What is universal life insurance? By Cynthia Bowman The different types of term life insurance policies explained By Nupur Gambhir Mortgage protection insurance: Who needs it and why By Huma Naeem Term Life Insurance Index: Sales rise by 1% in Q2, reaching record high By Nupur Gambhir On this page 1. Figure out how much life insurance you need2. Gather all your important documents3. Compare quotes from multiple online insurers4. Apply and wait for an application decision5. Sign your electronic policy and pay your first premium6. Tell your family about the policy and leave written details ZIP Code Please enter valid ZIP See rates