How does your credit score help set your life insurance rate?
First, off I'd like to state that not all insurance companies use your credit score as a factor when it comes to setting your life insurance rates. About 8-28% of insurance companies use your credit score to set up your life insurance premiums. You can find this information on the latest 2017 survey conducted by the insurance trade industry organization LIMRA.
About 18% of insurers admit to using your credit score to set your premiums, they are either looking at your credit report or your credit score to help them make a decision or sometimes they are using both.
The numbers of insurance companies grow as the other companies use consult industry data from LexisNexis Risk Solutions. About a third of insurance companies said they use LexisNexis services on their potential clients.
Most people don't know that this company LexisNexis maintains extensive records on you and the history of claims you have made if you own a home and a car. On your home and car insurance LexisNexis saves a seven-year record report on you, this report contains any claims you have made on policies. If you are interested to see what they have on you can take a look at the information they have on you for free here: LexisNexis Free Personal Report (you are entitled to 1 free report once a year!)
There is also another organization that keeps records on you called the MIB group also known as the Medical Information Bureau Group. This group tracks everyone who applies for life insurance and has any former underwriting for life insurance, health insurance, and disability insurance and holds your records for up to 7 years. You can also see what the MIB group has on you for free just call 866-692-6901 you can also fill out this form and send it to them as well: Free Annual Medical Report
You should be aware of how some insurance companies set your life insurance rates. If they take your credit reports and your credit score as a factor this can negatively impact your application for life insurance. Choose your insurance company carefully. I highly recommend shopping around before you make a decision for your families future. Our company does not use your credit score or your credit report to set your life insurance rates, we do disclose to you that we use the MIB group to perform a background check on your previous underwriting history to see if there are any fraudulent activity but that is all we check. Give me a call it only takes less than 5 mintues for a quick quote there is no obligation. I am here to provide education and help individuals and families secure a solid financial future.
Rene Gonzales
Financial Advisor
c. 512-568-7203
e. [email protected]
www.primerica.com/ReneGonzales
License Number: 2265292