What Does the life insurance company do with your Social Security number?
There are several reasons why life insurance companies need your Social Security number. Here’s what they do with that information:
1. Confirmation: Life insurance companies need to make sure you’re actually the person applying for coverage. They’re looking to prevent fraud.
2. Credit Report: Life insurance companies may check your credit report during financial underwriting. Your SSN is used to check if you’ve had a recent bankruptcy or any other issues to your credit that may be seen as risky.
3. Criminal Records: If you’ve committed a serious crime in the past, it could affect your chances at life insurance. Companies use your SSN to check on your criminal history and records.
4. Medical Information Bureau: The life insurance company uses the Medical Information Bureau (MIB) to look at your history of life insurance applications. They use your SSN when referencing the MIB information. So if you’ve applied for coverage in the past and been denied life insurance, your details will be in your MIB report.
5. Medication History: There’s a prescription drug or medication database that’s available to the life insurance companies. They use this database during underwriting to look at your medication history. It’s one of the ways they assess your risk class or health class rating before offering you a policy. They need your SSN to access this database.