How to Buy Life Insurance

I've helped thousands of families buy life insurance since 2004, and the same mistakes come up every time: applying with the wrong carrier for their health profile, not knowing what rate class they'll qualify for, or buying too little coverage because they anchored on the cheapest quote. A healthy 35-year-old can lock in $500,000 of term coverage for around $25 a month—but that number swings dramatically based on where and how you apply. Getting it right isn't complicated, but it requires a few things most agents won't tell you upfront. This page covers the exact process I use with every client, from estimating coverage needs to submitting the cleanest possible application.

1. They don’t know what a rate class is

Just exactly what is a rate class? The quick answer is that it is a way of coming up with how much risk an insured will pose to an insurance company, and in turn, how much to charge in premium.

There are four rate classes offered. Plus a smokers rate class.

• Preferred Plus
• Preferred
• Standard Plus
• Standard
• Preferred Smoker
• Standard Smoker

We ran some quotes on our quote engine, and you can see in the GIF below how a rate class will affect the price for the same exact policy.

So how do you know what rate class you qualify for before you apply for coverage? You don't.

An Insurance Geek can help you narrow down which carriers may offer you the best rate class before you apply for coverage. However, until the application is submitted and the underwriting process is completed, you don't know what rate class you will qualify for.

You can learn much more about the ins and outs of a rate class in this article here.

2. They buy the wrong type of life insurance

There are two different types of life insurance.

• Term Life Insurance
• Permanent Life Insurance

Most people have heard about whole life insurance, which is one type of permanent coverage.

Whole life insurance is the most expensive type of life insurance. Very few people need this type of policy; however, many people buy it. The only time whole life is necessary is during estate planning type situations, and even then there are cheaper and better permanent options.

Term life insurance is much more appropriate than permanent insurance for young families who need more death benefits to protect their loved ones, especially when you are young and have less free cash flow to pay for the premiums. If your main goal is paying off the house, compare a level term policy to mortgage protection insurance before you buy from a lender mailer.

Take a look at the image below where you can see the cost difference between a term and a whole insurance policy.

You can learn more here about term vs. permanent life insurance.

3. They jump from site to site

Going from one website to the next is not how you lower your Cost of life insurance.

It's a great way to spread your information all over the web and get confused, though.

You don't need to do this. Here is why...

Every product an insurance carrier offers has something called a base rate. Each carrier has to file the base rates in each state they do business. This means that the price will not be different from one site to the next. As long as you are comparing the same parameters which are age, gender, tobacco use, rate class, product type, and death benefit.

Going from website to website is a complete waste of time, and all you really do is spread your information all over the web and will probably have your information sold to many people.

When you buy life insurance you don't need to do this. You can compare and buy life insurance on the tools we built for our customers that shop all the carriers at once. Size your need first with our life insurance calculator, then run quotes for that amount.

4. They wait too long

The older you get, the more life insurance cost. You can see the cost difference below of waiting just ten years to buy a 30-year term policy. You are going to pay significantly more by waiting to buy life insurance.

Also, as we age, our health can change quickly. So you also run the risk of becoming uninsurable by waiting. It's best to lock in rates when you are young and healthy.

If you have put off buying life insurance it's ok. We can still find you the best rates at your current age and you will know you have locked in rates at the lowest cost.

5. They buy from a captive agent

A captive insurance agent is an agent who is contracted with one insurance carrier and is only allowed to sell that carrier's insurance products.

Some examples of captive agents are State Farm, Farmers, Allstate, and American Family.

A captive insurance agent will only be able to get you one quote.  This is a great way to pay too much for insurance as they have much higher rates than an independent agent can find for you.

You can see some of the cost differences below on a 20-year term policy.  You can see how much more you will pay if you choose a captive agent.

Sample rates generated using our quoting platform across 30+ carriers as of March 2026. Actual premiums vary by health class, state, and carrier underwriting.

6. They don’t work with an Insurance Geek

Working with an Insurance Geek can help to narrow down the options, as well as assist with the application process.

At Insurance Geek, we offer life insurance from more than 30 different carriers—we also publish best life insurance companies rankings so you know who we are comparing—so finding the right policy can be much more comfortable than doing all of the research on your own.

When you use our tools you can quickly compare side-by-side comparisons of both coverage and quotes, and will also guide you through the entire process so that all of your questions are answered. With Insurance Geek, finding the right coverage is only a few clicks away.