Part of applying for life insurance is providing your Social Security number (SSN). Life insurance companies will use your SSN to pull reports that help ensure the underwriting process is accurate and fair. Some reasons why a life insurance company will ask for your SSN are:
To confirm your identity: Using personal information like a SSN can help the carrier make sure you are who you claim to be.
To order a credit report: Carriers will check your credit to evaluate your risk. For example, if you’ve recently filed for bankruptcy, they may be hesitant to approve your application.
To access a report from the Medical Information Bureau: The company may check with the MIB to see if you’ve been denied life insurance in the past for medical reasons.
To access pharmacy records: Your prescription history will often be evaluated as part of your medical history.
To see if you have a criminal record that would affect your risk level: Carriers may want to see if you have a criminal history that would make you riskier to cover.
In this article, we’ll walk you through the reasons why a life insurance company asks for your SSN and what you can do to protect your personal information.
Do you need to provide the Social Security number of your beneficiary?
Typically, you will not need to provide the SSN for your beneficiary. This is because who you name as your beneficiary is your choice and can be changed at any time. However, when you pass away, your beneficiary will be required to prove their identity in order to receive your benefits, and this could include providing their SSN.
What types of checks are performed with your Social Security number?
There are a variety of different reports and checks that life insurance companies will pull using your SSN. These include a credit report, prescription records, a Medication Information Bureau report, your driving record and prescription history. If you have questions about how life insurance carriers use your information during the underwriting process, you may consider working with a broker. They’ll be able to offer a personalized experience, learning about your situation and answering any questions along the way. SelectQuote is an example of an insurance broker that works for you, not the insurance companies, to shop for life insurance policies on your behalf.
How to Make Sure Your Personal Information Stays Safe
When sharing personal information like your SSN, it’s important to make sure it’s being used legitimately. If someone claiming to be from your life insurance company asks for your SSN, you can protect your personal information by asking them to verify their phone or email address to make sure they’re associated with the right company. Most insurers will ask for sensitive information over the phone or in-person rather than email, so if you receive an email request for your SSN, make sure you confirm that the email address is safe. If you suspect a scam or fraud, you can file a report with the FBI, the National Association of Insurance Commissioners, the National Insurance Crime Bureau or the Coalition Against Insurance Fraud.
Looking for a life insurance quote? SelectQuote can help find coverage that is right for you.
The life insurance application process can be complicated, and you may have concerns when sharing personal information like your SSN. You can give yourself peace of mind by working with a trusted source, like an insurance broker. At SelectQuote, we can offer guidance about the life insurance application process and help you navigate it while keeping your information secure. We’ll take the time to learn about your needs and budget and then search trusted carriers in just minutes, saving you time and money.
