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 Premiums
If 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.
Waiting to Get Life Insurance
It's never a good idea to put off buying life insurance, even if you have bad credit. After all, you never know what life will throw at you, or when. However, if you're able to work up your credit score, you should let your insurance carrier know. You may be able to raise your status and lower your premiums.
Credit vs. Health
While your credit score may be a factor, your health and family medical history will have a much bigger impact on your monthly premiums. So, if you have poor credit but are in good health, you may still be able to qualify for a top status and also the lower monthly premiums.
For more information about Life Insurance call JCT Insurance Agency at (626)354-2000 or email jctfinancialsvc@gmail.com