Are you looking to get the best possible rate on your Life Insurance policy? If so, you should check your finances and aim to have a strong credit score. It's important to understand the different factors that affect your monthly premiums and what you can do to get the best value possible.
The Relationship Between Credit and Life Insurance PremiumsIf you have a very low credit score, it's often a red flag for life insurance carriers because it means you might not be able to make your monthly payments. Moreover, many insurance carriers see a link between how people handle their finances and their risk of dying early. These two factors mean that people with low credit present a higher risk to insurance carriers, which means people with bad credit may have to pay a higher monthly premium.
It is important to note that a low credit score alone will most likely not prevent someone from qualifying for life insurance. While there are some carriers that do not do a credit check, there are certain carriers that do a full financial background check before issuing a policy.