Skip to ContentSkip to Footer

How Will My Credit History Impact My Life Insurance Rate?

man taking down notes

Your credit score carries a lot of weight in many life activities, including renting or purchasing a home, being approved for a credit card or personal loan, and will affect the interest rate you are offered when buying or leasing a car or other item.

While your credit rating does not have a direct impact on your life insurance rate, the data on your credit report, such as past or current bankruptcies, can affect the interest rate or cost or premiums, or being approved by an insurance provider. It is not uncommon for insurance providers to make a soft inquiry into your credit report during the underwriting process.

What Insurers Look for in Your Credit Report

When underwriting a life insurance policy, the insurance company will review a range of available information, including some information found on your credit report.

  • Bankruptcy: Financial obstacles and missteps can happen due to unforeseen circumstances, with the best option available being filing for a fresh financial start. For a life insurance company, however, bankruptcy is a red flag and may lead to higher premium costs. An older bankruptcy on credit report is far less likely to be considered a risk. After a bankruptcy debt discharge, waiting 12 to 24 months can allow you to become eligible for more affordable premiums.
  • Payment history: During the soft inquiry into your credit history, insurance providers often review your payment history. If you missed too many loan payments or credit card payments, this may suggest that you may be unable to cover the cost of your monthly insurance premiums.
  • Collections: Insurers may also look for any bill payments that went to collections.
  • Credit card balances: An insurance company may consider you a financial risk if you carry large credit card balances.

There are other types of credit history, such as recently opened lines of credit and how long you have had credit, which could also play a minor role in your life insurance rates. Additionally, insurers may also look at your driving record to see if you have had many tickets or accidents, which could indicate that insuring you may come with higher risks. Whatever your situation, our local agent has access to many top-rated life insurance providers, and can help you, no matter what issues get in the way, including credit problems. We always search for the best coverage at the lowest rates and have access to the best options on the market.

Your credit report is only one of several factors that providers will review to determine your eligibility and rates when you apply for life insurance. As a consumer, even if your credit report has some blemishes, other positive sources of data in other areas, your options may be more affordable. Every insurance company and policy offers various options. With the help of one of our local agents, you can have the personal guidance you need to make the best decision and find a life insurance policy that works best for you and your budget.

Get A Quote

This field is for validation purposes and should be left unchanged.

Customer Reviews


David R


Jeannie B

Will find you a policy to fit your budget.

Brady J


Penny M

Very helpful and knowledgeable about health insurance options.

David F