Life Insurance

How to Determine Your Insurance Score

You are in good health, relatively young and don’t engage in risky behaviors. Yet, when you applied for life insurance, you got one of those dreaded

letters in the mail telling you that you did not meet their insurance score for the lower premiums. We know that insurance companies look at factors like age, weight, and health when determining our insurance score – but the reality is that it is much more complicated than looking at your medical reports.


When you get an adverse action letter in the mail, there will be a toll free number at the bottom of the letter which you can call to get a free copy of your credit report. Just getting this report is a long process and entails you sending personal information through the mail. You may want to skip this process all together because you will just end up with your credit score, NOT your insurance score. According to the insider experts, your credit report actually influences your insurance score.


The life insurance companies will be factoring in the amount of debt you have, your history of payments, how long you have had credit, the amount of credit which is in revolving loans, and many other financial factors which seemingly have nothing to do with your likelihood of dying.

Here is the logic behind this strange link between your credit and insurance score: the insurers assume that you are more likely to file an insurance claim if you have a large amount of debt or regularly take out debt. There are apparently studies which back up this logic.


Credit history certainly isn’t the only factor which is going to influence your insurance score. All of those health aspects are also going to have a major influence on your insurance score as will some other factors, like whether you have any speeding tickets. There are so many factors to consider for the insurance score, and they are each weighed differently with insurers, that it is impossible to get a clear idea of how you stand.

How to Determine Your Insurance Score

Before you get too caught up in the idea of a perfect insurance score, you should realize that only about 1% of applicants are eligible for the best life insurance rates. The life insurance companies are always going to quote you a low premium to draw you in. Then, they will later give you the higher premium based on the insurance score and some new illusive information they found out.


The reality is that you probably can’t do much to change your life insurance score. By the time you get your credit history in order and get your health is shape, you will have gotten a few years older and the premiums will again rise for you. Just take comfort in the fact that not many people are perfect in the eyes of life insurers and expect the premium to be higher than what was quoted.