Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent Benji Carr

UPDATED: Jan 7, 2022

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The Facts of Life

  • Life insurance companies may not look at your credit score, but your payment history
  • There are a handful of states that don’t allow insurers to base rates on credit history
  • A bad credit rating can raise your rates by up to 61%

When you apply for life insurance, you may want to find life insurance companies that don’t check credit history. To find the best life insurance companies who ignore credit history, consider going to a state where they cannot consider your credit.

If you’re looking for rates for life insurance companies that don’t check credit history, enter your ZIP code into our free quote tool.

What insurance companies don’t check credit history?

When your insurance company determines your rates, they will want to determine the risk you pose to them having to payout. If your insurance company gives you too low rates, they stand to lose a lot of money if something happens to you soon after the policy starts.

On the other hand, charging too much compared to other insurance companies will incentivize you to stop doing business with that insurer.

This is why the insurance company must go through your records during underwriting carefully. This is when an insurer will check your credit history and other factors to see its chance of making a profit.

If your insurance company is allowed to check credit scores in your state, there is a pretty good chance that they will understand your risk.

Luckily, if you live in one of the states that don’t allow credit checks for life insurance, you can get a policy from anywhere without worry. Some of the companies that won’t check your credit in these states include:

  • Prudential life insurance
  • Mutual of Omaha life insurance
  • USAA life insurance

If you live in a state that allows an insurance company to run credit checks on applicants, you may have to look a little harder for a company that won’t.

Your credit score may not outright affect your rates, but the insurance company will use your payment history to assign you an insurance score. This insurance score is what the company will use to determine how much you pay each month.

Why do insurance companies check credit history?

When you sign up for an insurance policy, the company will want to make sure that you don’t pose a risk of not paying. By checking your credit history, the insurance company can understand how you’ve handled your bills in the past.

Will an insurance credit check impact my credit score?

Your credit score shouldn’t be affected when applying for an insurance policy. The underwriting process is just meant to get an idea of your risk, so there are no registered hits on your credit for taking a look.

How much does life insurance cost with bad credit?

Your insurance company will likely be interested in your credit history to determine what you’ll pay for coverage. According to Value Penguin, lousy credit history can raise your rates by up to 61%.

Using the annual life insurance rates provided by the Insurance Information Institute, a 40-year-old can expect to pay $641 a year for coverage. Adding the extra 61% for the worst credit history adds up to $391 for coverage each pay period.

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Which states don’t allow credit checks for life insurance?

Some states don’t allow insurance companies to run your credit when deciding your rates. The states that don’t allow it include:

  • California
  • Hawaii
  • Massachusetts
  • Michigan

If you don’t want to have your credit checked and you live in one of these states, you can apply at any insurer without fear. However, no insurance companies are allowed to base your rates on your credit.

What factors other than credit history are considered for life insurance?

Your life insurance company will underwrite you to determine how much you should pay each period during the underwriting process. It will consider a variety of factors besides your credit history.

Some of the additional areas in your life that will affect your life insurance include:

  • Health – If you have a pre-existing condition or family history of medical issues, you may have to pay more for coverage.
  • Criminal history – If you have too many parking tickets or something more serious, your insurer will charge you to cover that risk.
  • Demographics – Your age and gender may cost your policy more, depending on the statistical chance of your death.
  • Occupation – If you work in a dangerous field, your insurance company will charge you for that.

Outside of these, the policy you choose will impact your life insurance rates. Consider a term life insurance policy if you want to get the lowest risk policy options available to lower costs.

Life Insurance Without a Credit Check: The Bottom Line

If you’re looking for life insurance companies that don’t check credit history, you may need to consider where you live. Some states don’t allow insurers to check credit history for life insurance. So if you’re worried about getting affordable coverage, consider moving to one of those states.

If you’re looking for quotes for life insurance companies that don’t check credit history, enter your ZIP code into our free quote tool to see what you could pay for a policy today.