What it Was Like Purchasing My First Life Insurance Policy
illustration of a family hugging

Money at 30: What it Was Like Purchasing My First Life Insurance Policy

A few weeks back, I reviewed a platform called Everplans that helps you organize important documents and info for your loved ones lest anything happen to you. On the heels of that, I penned a post all about preparing your finances for after your death. During the process of writing these articles, I couldn’t help but think about how I had yet to purchase a life insurance policy of my own.

That changed last week. On a whim, I went shopping for a policy and, within a few minutes, I was insured. So what was it like purchasing a term life insurance policy? What exactly did I buy? And what might I do differently in the future? Let me go ahead and answer those questions and more.

Purchasing the policy

Keeping with the “Well, I just wrote about this so…” theme, I started and ended my search by heading to Lemonade. While the company is best known for its renters insurance, they’ve expanded their offerings in recent years to include life insurance — as well as pet insurance, which I’m also currently considering. Anyway, I’ll do a full review of Lemonade life insurance in the future but, for now, I’ll just say that the process was very easy.

To get a quote, I had to answer a number of questions covering my health, family history, planned trips, and other such topics. Once this was done, I could not only get an overall quote but also toggle between different policy amounts and lengths to find the best option. Finally, after making my pick (don’t worry, I dish on what that was in a moment), I entered my credit card to seal the deal. Within minutes, my policy documents were already in my inbox. In other words, it was also quite simple and not nearly as scary as it might sound.

How much do you buy? And how long?

Surprisingly, something I didn’t put much thought into before getting a quote was how much life insurance coverage I’d actually need. So, I did what any person in my position would do: I Googled it. One of the first results I came across was a Dave Ramsey life insurance calculator. After answering some questions about my financial situation, I received… a prompt to enter my email address to continue. While slightly annoyed (albeit not surprised), I decided I was curious enough to continue and get my result. Based on my answers, the recommendation they came back with was a $450,000 policy.

That is not what I got. Granted, while I think that figure might be reasonable, I also get the feeling that Mr. Ramsey and I are viewing the need for life insurance differently (certainly wouldn’t be the first time I’ve disagreed with the man). Thus, while I appreciated the tip, I decided to go another way.

I’ll be honest and say that my decision really came down to getting a good monthly price while having a “decent” amount of coverage. With our household income coming in at around $50,000 right now, I thought double this would be sufficient in paying for any funeral expenses and helping my wife out for a couple of years — especially since, in theory, my wife could keep working so it’s really only my salary that would need replacing. In turn, I landed on $100,000 as my policy size.

As for the length of the policy, my initial thought was to just go with a simple 10-year plan. However, while playing with the slider Lemonade offered, I realized that a 20-year policy would only cost me 75¢ more per month. Since the idea is to lock in a good rate for as long as possible, I figured this was a pretty solid deal.

To recap, I ended up buying a 20-year, $100,000 policy for a total of $15.75 a month. And with that, I now have term life insurance.

The reverse

Now, you may be wondering if we also purchased a policy for my wife that would go toward assisting me if anything were to happen to her. The answer to that is “not yet.” Why? Well, while I know we really should as it only makes sense, I’ll admit that I’m still wrapping my mind around the idea of paying monthly for something I’m likely never going to see benefit from. Ultimately, I’m sure she will end up getting a policy of her own but, for now, at least we got me covered.


At the age of 36, I’ve now officially purchased my first ever term life insurance policy — and it wasn’t nearly as difficult as I might have feared. In the end, I’m happy with my selection and feel good knowing that I won’t be leaving my wife in a bind should I pass away unexpectedly. Nevertheless, as someone who pays attention to nearly every dollar he spends, I have to admit that paying $15.75 a month for something as intangible as life insurance doesn’t exactly sit well with me. As a result, not only am I dragging my feet on having my wife purchase a policy of her own but I also wonder if I may have skimped a bit on mine. On that note, the good news is that I can cancel my policy at any time, giving me another chance at getting it right. In any case, I’m glad to have now crossed this money milestone off of my list.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

2 Qatar Airways Privilege Club Credit Cards

Cardless Launches Two Qatar Airways Co-Branded Credit Cards

The FinTech startup Cardless is partnering with Qatar Airways to offer two new co-branded cards to the American market. About the cards: Recently, Cardless introduced its two latest rewards credit cards: The Qatar Airways Privilege Club Signature Card and the Qatar Airways Privilege Club Infinite Card. Starting with the Signature card, it earns 4x Avios on Qatar Airways purchases plus 2x Avios on dining purchases, and 1x Avios on all...
Yendo logo and credit card

Vehicle-Secured Credit Card Company Yendo Raises $165 Million

A FinTech that offers the first-ever credit card secured by a customer's vehicle has announced its latest round of funding. About the round: This week, Yendo announced that it had raised $165 million. However, this includes $150 million in debt financing and $15 million in equity. The debt portion was led by i80 group, while the strategic investors that participated in the equity round were not disclosed. Yendo previously raised...
woman holding her hands to her temple thinking

Lessons From a First-Time Home Buyer: Worst Time to Buy a House? There Are Always Exceptions

If you've been thinking about buying a house, looking at the news lately has likely disheartened you. As CNN reports, a recent Gallup poll found that 76% of Americans believe it's a bad time to buy — with only 21% saying it's a good time. There are several reasons for that sentiment, with the top two being the combination of high interest rates and high home prices. So, are you...

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...