When you apply for life insurance, the insurance company will request all kinds of information from you and may even require you to take a medical exam. As part of the information-gathering process, it may even pull your credit report. This is permitted under both federal and many state laws.

Application for Life Insurance

When applying for life insurance, an applicant will be required to provide various types of information, including personal medical history, dependent information and designated beneficiary. Depending on the insurer, a medical exam may also be required. Once submitted, the insurer will evaluate all the information provided and determine whether you are eligible for a policy and the premium you will be required to pay.

Retrieval of Credit Report

As part of the evaluation process, insurance companies are permitted to pull your credit report under the Fair Credit Reporting Act, which governs when and how companies may use an individual's credit report. Insurance companies use this report to determine whether you are eligible for a new policy or can renew an existing policy, or to determine the premiums you will pay for any policy issued to you.