Does anyone know if insurance companies pull a credit report when deciding to underwrite a life insurance policy? The app. I filled out said a consumer report. But, the agent said it meant an interview with friends, family members, neighbors and employers. It wasn't for a large amt, so she said don't worry about it. They do not usually pull a credit report. Is this true? I don't really know too much about this.
Most will pull a CR for life insurance, but usually if you have been with the company for a long time and have your homeowners or auto through them they will dismiss it. If she said they won't pull a report I wouldn't worry about it, they probably won't. If they do you can always go back to her and yell. Dani
Thanks Dani! I haven't done business with them before. But, I will take her word for it and I check my cr daily so I'll if there are any new inquiries. And, she'll definately hear about it from me if there is.
A consumer report IS a credit report -- just the general population has been conditioned to believe they are something different. There's no end to the information that they can collect and report -- they just have historically focused on credit related information. The interviewing you are describing is a investigative consumer report. The last I read an application for life insurance it did include consumer report, which also includes the other more niche-like CRA's, one of which is the medical information bureau. Sassy
IF THEY "PULL" FOR LIFE INSURANCE~~~YOU CAN DEMAND THE CREDIT CARD OR LOAN YOU JUST APPLIED FOR!!! You also have the right to BACK OUT...and tell them you are doing it for ONLY ONE REASON...YOU PULLED WITH-OUT LOGIC!!! No credit card or loan was applied for!!! I can't do business with an ILLOGICAL COMPANY!!!
George, I am confused by your response. Applying for loans are not the only reasons credit reports can be pulled. Reports are pulled all the time for insurance purposes and employment purposes as well.
What can they "SEE" on your credit report that gives ANY benefit as to the INSURANCE other than making a "HIT" on your F.I.C.O. score so they can charge HIGHER RATES???
Usually a credit report will only be pulled if there is reason to wonder why you are applying for the amount of insurance - meaning much more insurance than you really need. So, the average life insurance application will not generate a credit inquiry. "Consumer" reports also include your driving record, and MIB, and can include interviews with neighbors if there is a reason for that. My best story about the neighbor interviews is when my husband applied for life insurance right after we got married. Something on his driving record showed that he owned a race car (it was a show car) so the Equifax guys called some of our neighbors (yes, it's Equifax) and asked about my hubby's racing - of course they all said they had seen the car, and it was bright blue, and had a loud engine, etc, etc. and the insurance company turned him down. He disputed (you can do that) and in the end, it came out that they thought his show car was a race car. It was a 32 Chevy Coupe with a Corvette chassis and engine, and the entire block was chromed. Like you could drive it, LOL. It was towed everywhere. He eventually got the life insurance policy issued.
It's true, yes. Unless your face amount is large they usually don't do that. That provision is on all apps. Don't forget your MIB file IS a consumer report and they WILL pull that.
Thanks Breeze and Butch! For the info. That's pretty much what she said but I wanted confirmation. I'll doubt I'll see an inquiry. Thanks, everyone.
There are many valid reasons for pulling a credit report for life insurance,however one reason is NOT to charge you a higher rate. The main reason, is to prevent insurance fraud. This includes everything from misrepresenting your age, to false identities,multiple applications with different companies, "white-outs", (which are too complex to explain easily)lots of debts and judgments from health care providers,and numerous other reasons to disqualify you for a policy.
Okay, so they may just pull a credit report. I can live with that, I think. I have just a part of the credit repair syndrome - I dread having another inquiry on my cr if I don't have to. I think about the precious points that I am losing if they pull the report! Okay, okay, I'll put on my aluminum foil hat and the thoughts will disappear in a few hours! Along, with the conspiracy of the disappearing green cards but that's another story...
Okay, okay, I'll put on my aluminum foil hat and the thoughts will disappear in a few hours! Along, with the conspiracy of the disappearing green cards but that's another story... betacredit ================== Do you have the following background and years of experience? 1*Assett Management 18Years 2*Financial Services 18 Years 3*Insurance 18 Years 4*Stock Market 18 Years 5*Business Owner-Housing Company. 29 Years If not you would be wise to refrain from making comments like the one above as it makes the person making the comment look foolish. Your opinionated comment just doesn't stack up against the background. LB 59
conspiracy of the disappearing green cards but that's another story... betacredit ===================== Nobody claimed it was a conspiracy: You are just as bad at distorting the facts as the CAs CRAs Creditors & Insurers. Congratulations on lowering your self to their standards. You must bust be proud of your accomplishment of sinking to their level.
Well I don't know WHY they pull reports but I do know that they CAN vanili ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I can tell you why: It's so they can fleece you plain and simple! ````````````````````````````````````
Does anyone know if insurance companies pull a credit report when deciding to underwrite a life insurance policy? betacredit | *********************** What kind of life insurance? LB 59 ===========
George is right: Pulling credit reports for insurance is an even bigger scam than it is for pulling them for credit.
My best story about the neighbor interviews is when my husband applied for life insurance right after we got married. Something on his driving record showed that he owned a race car (it was a show car) so the Equifax guys called some of our neighbors (yes, it's Equifax) and asked about my hubby's racing - of course they all said they had seen the car, and it was bright blue, and had a loud engine, etc., and the insurance company turned him down. Breeze _____________________________ I'd rather be at the beach ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ This is the whole problem with reporting scoring and underwriting: Everything is based on false assumptions! LB 59
