Can unpaid life insurance premiums hurt my credit score?

[beta decay]

I would like to cancel a couple life insurance policies since I've replaced them with cheaper companies. I called and told them, and sent a letter out stating that I wanted to cancel. If I didn't include some detail, could they use it as an excuse to let my premiums build up and require me to pay with my credit being on the line? They have sent me a new bill with two months premiums on it, but no acknowledgement that I canceled. Before I call them up I would like to know what I may face legally. Thanks.

[beta decay]

anyone?

[disneysteve]

I'm not positive but I don't think it works that way. If you don't pay your premiums, they just cancel your policy. It isn't like a credit card or loan payment. You are paying for a service. If you stop paying, they discontinue the service. Still, you want to make sure they cancel it and don't keep billing you. I'd call them, tell them you notified them in writing and request written confirmation of the cancellation.

[buildmybudget]

Just Follow Through

My recommendation is to follow through and make sure this issue is resolved, regardless of the impact on your scores. I did the same thing with a medical bill once, and even though I paid it they still sent it to collections and once that happened it was even more difficult to resolve.

Good luck!

[kork13]

I did the same thing with a medical bill once, and even though I paid it they still sent it to collections and once that happened it was even more difficult to resolve.

If for some reason a bill goes into collections, it will most definitely hurt your credit score. However, as others have said, proactively get it taken care of and there shouldn't be an impact.

[Daylily]

What kind of insurance is it? Term, Whole, Universal?

Depending on how long the policies have been in force you may want to see if they can turn it into a Reduced but Paid Up policy. They would reduce the face amount to match the premiums that have been paid to date and then you wouldn't get billed again but would still have some coverage.

[beta decay]

It's term. Had it for a few months and replaced with something cheaper.

I'll call them, but I feel better now about it not hurting my score. Talked to someone who said it's not a reportable offense, but I'll try to get the company to acknowledge in writing that I'm canceling.

Thank you.