How Will My Credit History Impact My Life Insurance Rate?

Lisa Broadbent • December 5, 2023

REFERENCE SOURCE:  WWW.INSURANCENEIGHBOR.COM

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 offer 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.

Call Lisa Broadbent Insurance at (302) 731-0044 to discuss your life insurance options with our team of experts today.

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Taking precautions to prevent ice dams is an important part of preparing your home for winter weather. Knowing what an ice dam is , minimizing the conditions that allow one to form and removing an ice dam as soon as you spot one can help prevent serious damage to both the roof and the inside of your home. Take action before snow starts falling An ice dam may develop during the cold winter months if warm air from your home or attic melts snow on your roof. In freezing temperatures, the melted snow may refreeze once it reaches the colder edge of the roof. Keeping the temperature of your attic at 32°F or below can help prevent snow from melting and ice dams from developing. The following are some steps you can take to help prevent the snow melting-and-freezing cycle that often causes ice dams: Insulate your attic. Be sure your attic is properly insulated to help prevent warmth from escaping through ceilings. Whenever possible, an insulation value of R-40 is recommended. Prevent air leaks. Check and seal any openings where warm air or heat could escape into the attic, such as insulating or caulking around vent pipes, exhaust fans, chimneys, attic hatches and/or light fixtures. Improve ventilation. Increase the number or size of attic, roof or soffit vents that allow cold air to circulate and flush warmer air out during the winter. Install a water-repellent membrane. When replacing the roof covering, install a water-repellent membrane underneath the shingles. This acts as an extra barrier that helps prevent water from seeping inside the building should an ice dam form. Tips to help prevent ice dams through the winter Ice dams can sometimes form despite your best efforts to keep your roof at the proper temperature. Be sure to monitor the weather and maintain your roof throughout the colder winter months for additional protection against ice dams, such as: Clear gutters and downspouts. Prevent water from accumulating and possibly freezing in your gutters by cleaning leaves, debris and snow accumulation from in and around gutters and downspouts. Making sure that your gutters are properly pitched can also help prevent the collection of water in low spots and help reduce the potential for ice buildup in gutters. Remove snow accumulation from your roof after every storm. Whenever possible, use a roof rake to clear snow about three to four feet from the edge of your roof soon after each storm. Snow accumulation along the edge of your roof increases the likelihood of an ice dam developing, which prevents water from draining off the roof. This water can then back up underneath roof shingles and make its way into your home. Remove ice dams as soon as you spot them. Check your roof often and know how to help identify and remove an ice dam. CAUTION: Avoid using a ladder in snowy and icy conditions. This can be extremely dangerous and is best left to the professionals. For questions or concerns about insurance to protect your home’s roof, please contact us at 302-731-0044 , or email lisa@broadbentins.com . Our agents and staff are available Monday-Friday, 8 a.m. to 5 p.m. ET, with the exception of holidays.