No, life insurance does not impact your credit score and payments will not show on your credit report or in your credit history. It is however important that your chosen policy is affordable and will not cause you or your family to struggle financially.
A soft credit check may need to be completed as part of the process if we need to verify your identity. These checks will show up on your report, but will not have an impact. A hard search will not be required during your life insurance application – only hard searches affect your credit profile.
Life insurance is not like car or home insurance where monthly payments are a method of ‘borrowing’ the full amount from the insurer. You are not borrowing any funds with a life insurance policy, so therefore it has no effect on your credit score.
Life insurance is a month to month commitment and can be cancelled at any time. If payments are stopped then the policy will lapse and cover will cease.