Best Life Insurance Companies That Don’t Check Credit History (2021)

You won't find life insurance companies that don't check credit history outside of California, Hawaii, Massachusetts, Michigan, and Washington. Life insurance companies check your credit history to see if you have any significant debts or bankruptcies. But if you have good credit, you can save at least 5% on life insurance. Shop around and compare multiple life insurance companies to get the best rates.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Dec 14, 2021

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The Highlights

  • Insurance companies use credit history to correlate risk
  • Age, health, policy type, death benefits, and company determine life insurance cost
  • Companies that don’t require credit checks may have more expensive monthly rates

Are you searching for life insurance companies that don’t check credit history? Unfortunately, your credit score isn’t a significant factor when determining life insurance coverage.

Some life insurance companies may consider your credit history as a factor. But which life insurance companies check credit history? Don’t worry – we’re here to help.

Our guide has everything you need to know about life insurance companies that check credit history and life insurance companies that don’t.

After learning about life insurance companies that don’t check credit history, enter your ZIP code in the free comparison tool above to compare multiple insurance companies in your area.

What are the best life insurance companies that don’t check credit history?

Credit history is one of the factors that determine life insurance eligibility. But it’s a vague characteristic among life insurance companies.

Your credit score isn’t a significant factor for life insurance rates, but insurance companies may use it to determine your risk.

The closest thing to no-credit-check life insurance is no medical exam life insurance.

However, five states have outlawed credit-based insurance. Here are the states that banned credit as a factor for insurance.

  • California
  • Hawaii
  • Massachusetts
  • Michigan
  • Washington

You won’t find any insurance companies outside of these states that don’t check your credit.

The more prominent companies follow the insurance law of these states, but it’s open season for credit-based insurance in all other states.

What about life insurance companies that do check your credit score? 

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Why do life insurance companies check credit history?

According to the Federal Trade Commission, credit history correlates to your risk of filing claims.

Here’s a list of life insurance companies that check your credit score.

  • Haven Life
  • AARP
  • Ethos
  • Mutual of Omaha
  • USAA
  • Erie Insurance
  • Country Financial
  • John Hancock
  • Nationwide
  • Securian Financial

Mutual of Omaha life insurance is one of many companies that use your credit history to determine rates.

USAA life insurance is only available to veterans and their immediate families. Therefore, the best options are companies that open their business for everyone.

What factors determine life insurance rates?

Credit scores don’t affect your life insurance rates like other factors. Life insurance companies are more concerned about these factors:

  • Age
  • Gender
  • Health (smoker or non-smoker)
  • Policy Type
  • Policy Term
  • Coverage Amount (death benefits)

Senior policyholders pay more for life insurance, but younger customers have cheaper life insurance rates.

Life insurance rates can increase by at least 10% regardless of age if you’re a smoker.

Your monthly life insurance premiums may decrease by at least 5% if you have a good credit score.

For instance, Prudential life insurance is about $16 a month for 25 to 39 years old. But when you’re a smoker, you could pay at least $25 per month.

Do life insurance companies check my credit for permanent life insurance?

The short answer is yes. Permanent life insurance has accumulated cash values. Also, some permanent life insurance policies have investment opportunities.

Permanent life insurance is more expensive. However, your credit history is a negligent factor.

For example, life insurance companies with universal life insurance manage accumulated cash accounts and investment portfolios. Therefore, policyholders must have a good grip on their credit scores.

Debts, bankruptcies, and other financial hangups may affect your qualifications for long-term life insurance.

Overdue debts and bankruptcies are red flags that affect your eligibility for specific life insurance types.

If you can’t afford a permanent life insurance policy, your life insurance company may give you an option to transfer to term life insurance instead of canceling your policy.

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Life Insurance Companies That Don’t Check Credit History: What’s the bottom line?

Having good credit makes shopping for life insurance more accessible. In addition, high credit scores are associated with lower prices.

But the best insurance companies usually check credit scores to gauge your risk even though it won’t impact your life insurance rates much.

Now that you know more about life insurance companies that check credit history use our free comparison tool below to compare multiple insurance companies in your area.

Frequently Asked Questions: Life Insurance Companies That Don’t Check Credit History

Do you want to know more about credit and insurance? Read the answers to frequently asked questions below for more details.

#1 – What are credit insurance scores?

Credit insurance scores show your performance with insurance companies. A good insurance credit score has timely and successful payments. Also, an excellent insurance credit score has very few claims.

#2 – Is there a difference between credit-based insurance scores and credit scores by lenders?

The answer is yes. C.L.U.E. and A-PLUS manage insurance credit reports. But credit scores associated with lenders are monitored by FICO, Experian, Equifax, and TransUnion.

#3 – Do insurance checks on credit affect my overall score?

The answer is no. Insurance checks on credit are known as soft credit checks (also called soft inquiries).

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