The Relationship Between Your Credit and Life Insurance Premium
When you’re looking to get the best life insurance premium for your coverage, then you will know that your rate is determined by a variety of factors, such as your health and lifestyle. What also impacts your premium, however, is your credit score. That’s right, having a good or poor credit score can either raise or lower your premium significantly.
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 premiums. Insures have also noted a link between how people manage their finances and their risk of dying early. These two factors indicate that those with a low credit score present a higher risk to insurance carriers, resulting in a higher monthly premium.
If you have low credit, there are many steps you can take to improve your score. To help your credit score, you can make payments on time, reduce your debt to income ratio, and review your credit report to ensure there are no mistakes. It’s also worth noting that even if you do have poor credit, it’s unlikely that you’ll get denied for life insurance coverage.
It’s never a good idea to put off buying life insurance – even if you have a poor credit score. After all, you never know what life will throw at you. If you’re able to work up your credit score, you should let your insurance carrier know.
Ready to get started on your life insurance policy? Talk to the professionals at Premier Risk Insurance to find out how you can acquire affordable coverage. We serve Long Island and surrounding cities in New York, and we look forward to hearing from you today.