You can buy term life insurance directly from insurers, through agents, or via online brokers

Term life insurance is sold through three main channels: directly from insurance companies, through independent agents or brokers, and through online platforms. Each route has different costs, service levels, and how quickly you move through the process. The cheapest policies usually come from direct online purchases, but some people prefer working with an agent who can answer questions in real time.

Your choice often depends on whether you want to compare many companies at once, get personalized guidance, or move as fast as possible. All three channels sell the same underlying product — a policy that pays a death benefit if you die within the term you choose — but the experience and final price can differ significantly.

Key Takeaways

  • Buying directly from an insurer's website is usually cheapest because you skip the middleman, but you compare only that one company.
  • Independent agents and brokers represent multiple insurers and can show you options, but their commission is built into your premium.
  • Online brokers and comparison sites let you see quotes from many companies in one place without talking to a person.
  • Most insurers require a health questionnaire and some require a medical exam, which takes one to two weeks before coverage starts.
  • Employer-sponsored term life is often the cheapest option if your workplace offers it, because the group rate is lower than individual policies.

Buying directly from an insurance company website

Going to an insurer's website — such as State Farm, Prudential, Mutual of Omaha, or Term4Sale — and buying online is usually the lowest-cost route. You answer health questions, choose your coverage amount and term length, and receive a quote within minutes. If you accept, the company sends you documents to sign electronically, and you can often complete the entire process without speaking to anyone.

The downside is that you see only that one company's rates and terms. If you want to compare, you have to visit multiple websites separately. Direct purchase also means you are responsible for knowing what coverage amount makes sense for your situation — the insurer's website will ask, but won't advise you on the answer.

Most direct online purchases still require underwriting, which means the company reviews your health history and may order a medical exam. This takes one to three weeks. Some insurers offer "simplified issue" or "no medical exam" policies that skip the exam but charge higher premiums and have lower maximum coverage amounts.

Using an independent agent or broker

An independent agent or broker represents multiple insurance companies and can show you options from several of them. You typically call or meet with the agent, discuss your situation, and they provide quotes from three to five insurers. The agent handles the paperwork and follows up with the insurance company on your behalf.

The commission the agent earns is included in your premium — you do not pay it separately, but it does make the policy slightly more expensive than buying direct. However, an agent can answer questions about what coverage amount you need, explain the difference between term lengths, and help you understand what happens when your term ends. For someone buying life insurance for the first time, this guidance can be worth the small cost difference.

Agents are regulated by your state's insurance department. You can find licensed agents through the National Association of Insurance Commissioners (NAIC) website or by searching your state's insurance commissioner's office.

Online brokers and comparison platforms

Websites like PolicyGenius, SelectQuote, and Term4Sale let you enter your information once and receive quotes from multiple insurers. You answer a health questionnaire, and the platform shows you rates from companies that will likely approve you based on your answers. You can compare side by side and choose which policy to buy.

These platforms do not charge you a fee — they earn a commission from the insurance company when you buy, just like an agent does. The commission is built into the premium, so the cost is similar to buying through an agent. The advantage is speed and the ability to see many options at once without calling multiple companies.

Be aware that not all insurers are on every platform. If you have a specific company in mind, you may still need to visit their website directly to see their exact rates. Also, the quotes you receive online are estimates based on your answers; the final rate depends on underwriting, which may take two to four weeks.

Employer-sponsored group term life insurance

If your employer offers group term life insurance, this is often the cheapest option available to you. Group rates are much lower than individual rates because the risk is spread across many employees. Many employers pay the entire premium for a basic amount of coverage — often one to two times your annual salary — at no cost to you.

You can usually buy additional coverage beyond what the employer pays for, though at a higher rate than the basic benefit. Group policies require no medical exam in most cases, and coverage starts as soon as you enroll. The downside is that if you leave the job, you lose the coverage, though many policies let you convert to an individual policy without a new medical exam.

Check your employee benefits guide or ask your HR department what term life options are available and what the employer pays for. If your workplace does not offer group coverage, you will need to buy an individual policy through one of the other channels.

What to expect during the buying process

No matter which channel you choose, the basic steps are similar. You provide your age, health history, occupation, and sometimes lifestyle information like smoking status. The insurer uses this to calculate your rate. You choose a coverage amount (usually $100,000 to $1 million) and a term length (typically 10, 20, or 30 years).

Most insurers then order underwriting, which may include a phone call with a nurse, a medical exam at your home or a local clinic, or both. This takes one to three weeks. Some companies offer "accelerated underwriting" that uses medical records and databases instead of an exam, which can cut this time in half. Once underwriting is complete and approved, your policy is issued and coverage begins.

You will receive a policy document that spells out the death benefit, the term length, your monthly or annual premium, and what situations are excluded from coverage (such as death by suicide within the first two years). Keep this document in a safe place and tell your beneficiary where to find it.

Comparing costs across channels

The same policy bought through different channels will have different prices. A 30-year-old non-smoker buying $500,000 in coverage for 20 years might pay $30 per month buying direct from an online insurer, $32 per month through an online broker, and $35 per month through an agent — the difference reflects the commission structure.

However, these numbers vary widely by insurer, your health, and your location. The only way to know the real difference is to get quotes from multiple sources. If you use an online broker or comparison site, you will see several quotes at once. If you buy direct, you have to visit each company's website separately. The time investment is usually worth it if you are buying a policy you will keep for 20 or 30 years, since even a $5 monthly difference adds up to $1,200 to $1,800 over the term.

Frequently Asked Questions

Do I need a medical exam to buy term life insurance?

Most insurers require either a medical exam or a phone interview with a nurse, which takes one to three weeks. Some companies offer "no medical exam" or "simplified issue" policies that skip this step, but they charge higher premiums and limit how much coverage you can buy. If you are young and healthy, the lower premium from a standard policy usually makes up for the wait time.

Can I buy term life insurance on someone else?

No. You can only buy a life insurance policy on yourself or, in limited cases, on a spouse or business partner if they know about it and agree. The insurer requires proof that you have an "insurable interest" — meaning you would suffer a financial loss if that person died. This rule exists to prevent people from taking out policies on strangers.

What happens to my policy when the term ends?

When your term ends, your coverage stops unless you renew or convert it. Some policies let you renew for another term at a higher rate based on your age at that time. Others let you convert to a permanent policy (whole life or universal life) without a medical exam. If you do neither, the policy straightforward expires and you have no coverage. You can always buy a new individual policy, but you will need to go through underwriting again.

Is it cheaper to buy online or through an agent?

Buying directly from an insurer's website is usually cheapest because there is no agent commission. Buying through an agent or online broker costs slightly more because their commission is built into the premium. However, the difference is usually small — $2 to $5 per month — and an agent can provide guidance that may save you money by helping you choose the right coverage amount.

How long does it take to get coverage after I buy?

Once you submit your process, underwriting typically takes one to three weeks. Some insurers offer expedited underwriting that takes five to ten business days. A few companies offer same-day or next-day coverage for simplified issue policies, but these have higher premiums. Your coverage start date is the date your policy is issued, not the date you applied.