Every life insurance applicant is usually asked to share private details about his or her health, finances, and background. Underwriters use this information to calculate your risk classification and to verify your identity before offering you a policy.
Certainly, it’s important to be vigilant about keeping your SSN safe since identity theft is one of the fastest-growing crimes in America. However. life insurance companies need both your SSN and driver’s license numbers for identification purposes, but giving out either of these can be alarming.
However, you can feel confident that insurance companies and insurance brokers like LifeInsure will take extraordinary measures to protect the sensitive information provided by life insurance applicants.
There are various reasons that life insurance companies require an applicant’s social security number for identification and underwriting purposes:
Social Security numbers are an excellent way to verify your identity. They are universal, reliable, and can be used for everything from confirming your GPA to checking your credit score. It’s also a great way of telling if you’ve applied for life insurance already.
If you’re an undocumented immigrant, it may be tough to get life insurance without a social security number. But luckily, there are still ways for you to protect your loved ones when you pass away.
There are life insurance companies that will accept other forms of identification, such as a passport or ITIN, to verify that you are the same as the named insured listed on the application.
Not having an SSN or if you’re unwilling to provide it, you can expect the life insurance company to decline your application or, at best, the underwriting process will become more cumbersome.
The bottom line is that when you apply for life insurance, and the company requires your social security number, and you refuse, the company will likely ask you to shop elsewhere or provide additional forms of identification.
In most cases, you will be required to provide the social security number for any beneficiaries listed on your policy.
When you die, your beneficiary will be required to prove that they are the person listed on your policy. Additionally, if you provide your beneficiary’s SSN, DOB, and current address on the application (and update it as needed), the claims department can expedite the death benefit to your beneficiary.
Simply put, all life insurance companies develop a “risk profile” that allows them to determine your rate class. Your driving habits (or bad habits) are a critical part of that profile. Your life insurance underwriter will request your driver’s license number (if you have a license to drive) in order to check your driving record for the previous five years.
Applicants who have a driving history containing serious driving violations will experience a negative impact on their risk profile and might be surcharged or even declined coverage if there is a history of reckless driving and driving under the influence.
Moreover, your driver’s license number combined with your social security number is an excellent method for determining that you are, in fact, the person applying for life insurance.
Defending sensitive information from fraud depends on the method you will be using to purchase life insurance.
If you are completing a paper application, never email the application to the company or broker unless they offer an encrypted email system. Many companies and brokers use innovative technology that allows you to log in to their system and complete the application, or they’ll use a third-party application process like DocuSign.
If you are completing your application over the phone, take a few extra minutes to verify who you are communicating with and that they are, in fact a representative or authorized broker for the insurance company:
If you feel as though the person you’re speaking with has misrepresented themself, immediately hang up and contact the National Insurance Crime Bureau or the National Association of Insurance Commissioners and report the incident.
To feel confident about sharing personal and sensitive information, make certain that you are dealing with a highly-rated insurance company or independent broker like LifeInsure.com.
Most insurance representatives will not get offended if you ask questions about the security of your data, and if they do, stop communicating with them and go elsewhere.
The insurance professionals at LifeInsure.com provide life and disability insurance nationwide and have the technology in place to make certain that the personal information you share with them is safe and secure.
Can I buy life insurance with an ITIN number?
Yes, many life insurance companies will accept an ITIN in lieu of a social security number.
What if I don’t have the social security number for my beneficiary?
Most insurance companies require a beneficiary’s SSN on the application. If you don’t know the information when completing the application, the insurance company will request it prior to issuing the policy.
What if my beneficiary refuses to give their social security number?
If the beneficiary refuses to give their social security number to collect on a life insurance claim, the insurance company will likely accept another form of identification such as a passport, ITIN, or valid driver’s license.
Can I take out an insurance policy on my parent if I have the SSN?
Yes, you can purchase life insurance for a parent if you have their SSN. However, the company will require their signature before issuing the policy.
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Here is the legal information we’re required to provide you. LifeInsure.com, a California corporation and subsidiary of Intramark Insurance, is a licensed independent insurance broker. The information provided on this site has been developed by LifeInsure.com for general informational and educational purposes. We try hard to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application.