Your credit history will not affect your ability to purchase a new policy.

Also lapsing a policy is not considered a black mark on your credit. People lapse policies all the time for positive reasons. Finding a better product or needing a different type of policy are all legitimate reasons for lapsing a policy.

I’m sure your friend the agent will just be pumped to get the commission. They collect most, if not all of their commission on term products in the first year anyway.

Typically in an insurance application it will ask if you have any other insurances inforce and if there were any other policies that have been rated, postponed, declined, cancelled or modified in any way. You should disclose that you had a policy that was cancelled. Some companies don’t ask about cancelled ones, but some do…depends on the company (IE: AIG asks about cancelled, but Empire Life and Equitable Life don’t), but all of them ask about rated, postponed or declined.

Insurance companies do what’s called financial underwriting, basically to make sure you are able to pay the premiums and it’s not wasting their time to set up a policy for you.

Even with the cancellation, that is a VERY minimal concern really. It was a mistake and not a big deal. Most companies wouldn’t even be too worried about it. IF you had a history or 5 or 10 that you let cancel then keep re-applying it might look suspicous or something.

I don’t know of any insurance companies that check your credit report. Most just ask if you declared backruptcy or had any legal judgements to pay something back…that’s about it if anything.

Most people cancel a life insurance policy within the first five years. So that’s not going to count against you.

And last I heard, they weren’t checking credit for life insurance. If they do, the agent won’t get your credit report, if that’s what you’re asking.

You can cancel insurance buy not paying for it. That’s how you do it, they would have no idea you did that and it wouldn’t matter.

Regardless of where you buy, you should check the prices on my site as the tool there will give prices on ~150 different companies and requires no personal information to use.

I’ve never heard of a company running an LHR or any other reports that relate to prior insurance when you’re applying for life insurance. I also don’t believe that any run credit reports for life insurance. Credit reports are run for automobile insurance policies because there are studies that find that certain material contained in your credit report indicate the liklihood that you’ll put in auto claims (that’s why it’s currently legal in most states to check credit reports).

The company will likely look at your motor vehicle record and your Medical Information Bureau report (but they may not depending upon the amount of insurance you’re buying).

I can’t make any claims for sure since I don’t know what company your friend works for, but I can say with almost absolute certainty that your friend will not find any reports relating to your old policy. He might, however, ask you about your insurance history (but this typically only requires that he ask about policies that are currently in force or if you were ever denied for coverage).

You should be safe, I wouldn’t worry about it.

Insurance companies share claims information, but generally not billing information.

If you let a past policy lapse, that’s not necessary a black mark against you. Know why? Because that means that you’re someone that pays money for policies, without the company ever needing to pay off. Insurance companies WANT policy holders that do this.