What is life insurance, and who actually needs it?
Term vs whole life, without the sales pitch.
Time
An hour to think it through, a few weeks to get approved
Cost
Depends on age, health, and coverage amount
DIY?
DIY possible, an agent can help
Urgency
Matters most when someone depends on your income
What's probably happening
Life insurance pays a lump sum to the people you name, called beneficiaries, if you die. Term life covers you for a set period, such as 20 years, and is usually the simpler and cheaper option. Whole life lasts your entire life and builds a cash value, but it typically costs much more for the same coverage.
How urgent is it
If nobody relies on your income, you may not need a policy at all. If you have a partner, kids, a mortgage, or shared debts, a policy can keep them from being stuck with those costs. Premiums are generally lower the younger and healthier you are when you apply.
What to do first
Write down who would be financially affected if you were gone, and roughly what they would need to cover, such as debts, housing, and living costs for a few years.
Can I handle this myself
Many people with dependents start by comparing term policies. Get quotes for the same amount and length from a few insurers. Check whether your employer already offers group life insurance, and note that it usually ends when you leave the job. Name your beneficiaries clearly and keep them updated.
When to call a professional
If you are weighing whole or other permanent policies, have a business to protect, or have a complex estate, talk to a licensed agent or a fee-only advisor, and ask them to explain every fee in writing.
What it might cost
Cost rises with age and health issues, and with the amount and length of coverage. Term policies are usually the lower-cost way to get a large amount of coverage for a set number of years.
What to gather first
Basic personal and health information, beneficiary names and contact details, and sometimes a medical exam or records.
Mistakes to avoid
Buying more complicated coverage than you need, not telling the truth on the application, and forgetting to update beneficiaries after a major life change.
Sources
General educational information, not individualized tax, legal, or financial advice for your situation.
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