 TITLE: Does Life Insurance Require a Credit Check? CONTENT: Do Life Insurers Check Your Credit?\n-----------------------------------\nTraditionally, not many life insurance companies used a credit check when evaluating potential new customers. However, the traditional underwriting process—which can involve medical exams and waiting for test results—may take a long time. While no-exam policies are available, they may only be offered to healthy and low-risk people, or could be more expensive than a policy that requires an exam.\nThe use of a credit check, along with other data that can be quickly gathered and reviewed, is one way insurance companies are trying to automate and accelerate underwriting. Depending on what the automated process determines, applicants may be able to get approved with limited (or no) medical exams. As a result, it can be easier for more people to quickly qualify for life insurance with lower premiums.\nLIMRA, a global trade association for life insurance companies, and Munich Re, a German insurance company, conducted surveys of insurance companies' accelerated underwriting programs. They found the use of credit records grew from 18% of companies in 2017 to 49% in 2019. A separate Munich Re Life US survey of 28 insurance companies in late 2018 found that over 90% of the companies are either using or considering using credit-based scoring during underwriting.\nWhen a life insurance company checks your credit, it may be looking for particular information from within your credit history. For example, a bankruptcy filing in your credit report could impact your ability to be approved for a policy and its cost.\nOr, the company may receive a credit-based insurance score that attempts to predict the likelihood that someone will miss a premium payment. It can use the score to help determine if it should require a medical exam, issue a policy and how much to charge in premiums. END