getting life insurance after Chap 7

[goingcrzy]

I got a few quotes on a life insurance policy. My friend is an agent with Nationwide. He mentioned he can get a better rate than what I was quoted.

Will there be a credit check? I don't want him to know about my BK.

Thank you!

[nw138413]

typically there is no credit check with a life insurance application. I don't think you have anything to worry about. (I'm a licensed insurance agent and a financial planner).

N

[Mensa1]

typically there is no credit check with a life insurance application. I don't think you have anything to worry about. (I'm a licensed insurance agent and a financial planner).

N

W-H-A-T....? Just about every life ins application of companies that are worth buying a life policy from ask's the question - Have you ever filed for Bk; or have you filed for Bk in the last 5 or 7 yrs? No credit check but certainly what is called a Personal History Insp, which can and does include some public records. You couldn't answer the Bk question "NO" without jeopardising your coverage should something happen to you and a claim be filed. This would be grounds for recinding a policy if within the first two yrs. To the OP, I'm not suggesting that you would answer this questions falsely, but you need to know that it is on most life applications.

Most companies that offer any type of decent rate on life ins coverage aren't going to issue a policy if you have been Ch 7 in the past 1-3 yrs and a few of the really tight cos go back 5 yrs from disch. The very few that do not ask the question are usually higher risk type rates (easy issue that accomodates some health issues and have higher rates) to begin with or very low face amounts of coverage as in final expense policies. But if you are talking 100K-250K and up, Bk is a BIG issue for at least 1 yr.

In addition to Bk, life ins cos concern themselves with your income and will only issue a face amt of 15 times your income, in most cases; slightly higher if you have a large mtg and small children. They also concern themselves with your driving record (suspensions and moving violations = added risk), criminal record, hazardous activities, and on and on.

E.g. American Gen'l Life - must be 1 yr from discharge; one of the more aggressive underwriters of life policies.

[nw138413]

For What it's worth...

I looked at applications for term life for a handful of companies i have dealt with in the past and some I have not....

Banner Life: Asked only about business filing for bankruptcy for business owned policy.

West Coast Life: did not ask.

John Hancock: did not ask.

American General did ask the question about bankruptcy as did Genworth for their UL product.

Genworth: asked the question.

AXA Equitable: did not ask. (did not look at the financial supplement for policies over $2Million)

Metlife: Did not ask (seperate financial questionaire for policies over $1,000,000)

It looks as if some do and some do not. These were all in the state of OHio (where I'm licensed) and your state laws may differ.

N.

[Logan]

I am in the process of obtaining life insurance. I will let you know if my BK changes anything.

Logan

[Mensa1]

I am in the process of obtaining life insurance. I will let you know if my BK changes anything.

Logan

Which company are you applying with Logan?
Did the application ask if you have filed for Bk in the last X yrs?