How to shop for life insurance

Step one: size the obligation, not the premium

Work out what would actually need covering — debts that don't disappear, income that would stop, costs that would start. Then subtract what already exists: savings, existing policies, coverage through work, and your partner's earning capacity.

What's left is the gap. That number, not a multiple of your salary, is what you're shopping for.

Step two: match the shape to the obligation

Now decide the structure, because it follows from the obligation rather than from preference.

• A need with an end date — a mortgage, children at home — points to term
• A need with no end date — final expenses, a lifelong dependent — points to permanent
• A need that steps down in stages may suit two terms of different lengths
• If health is a concern, ask about conversion privileges before anything else

Step three: get quotes on identical terms

Only now does price become meaningful. Give every quoter the same face amount, the same term, and the same honest health picture.

Watch for the assumed health class in particular. A quote assuming the best available class will always undercut one assuming a standard class, and that difference is an assumption rather than a better deal.

Step four: apply, then wait properly

Answer the application accurately — it's the contract, and the contestability period means an error found later can cost your family the claim.

Do not cancel any existing coverage until the new policy is issued and in force. Not when you apply, not when you're told it looks good.

Step five: put it where it can be found

Confirm the beneficiaries, tell at least one person the policy exists and which insurer holds it, and store the documents somewhere findable.

A policy nobody knows about doesn't get claimed. This step costs five minutes and determines whether the previous four mattered.