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Why Your SSN Is Required For Life Insurance: By William Schantz

Life Insurance

Are you considering purchasing a life insurance policy? If so, chances are you’ve heard the term “social security number” bandied about a bit. But do you really understand why providing your social security number to an insurer is absolutely essential for getting coverage? To answer that question and get some more insight into the financial side of buying life insurance, I recently sat down with William Schantz, an industry veteran and knowledgeable professional who can help break down this complicated topic in simple terms. Keep reading to learn more about why your social security number is required for life insurance!

Bill Schantz On Why Your Social Security Number Is Required For Life Insurance

When you apply for life insurance, one of the pieces of information you’ll likely be asked to provide is your Social Security number. But why? What does this have to do with purchasing life insurance coverage? In brief, your Social Security number provides a unique identifier and also helps insurers verify your identity, says William Schantz.

Your Social Security number has nine digits that serve as an identifier to link together all relevant information about you with the federal government. This includes records such as your income tax returns, whether or not you’re eligible for certain benefits, and any other related financial activities.

Insurance companies use this information to assess how much risk they take on when writing a life insurance policy for someone like you—especially if the policy is a large one. By looking at your income tax returns, current assets, and other financial information, they can get an idea of how much risk you pose based on the amount of life insurance coverage you’re applying for.

In addition to verifying your identity and assessing the risk associated with providing life insurance coverage to you, your Social Security number also helps insurers check if you have been truthful when filling out the application form. Any discrepancies between what was reported and what is actually on record could lead to higher premiums or even denial of coverage.

Furthermore, if a claim is made in the future, it’s helpful for the insurer to have proof that you are who you say you are—and that’s where your Social Security number comes into play. Insurers can use your Social Security number to verify that the death benefit is going to the right person and can also make sure that any claims submitted are accurate and valid.

It’s easy, as per William Schantz, to see why insurance companies require your Social Security number when you apply for a life insurance policy. It helps them assess risk, validate applications, and ensure accurate payment of death benefits if they’re ever needed in the future. Ultimately, this allows them to offer coverage at lower rates while providing valuable protection for their customers and beneficiaries.

William Schantz’s Concluding Thoughts

Overall, your Social Security number provides an important function in helping insurers accurately process life insurance policies—from application all the way through payout. According to William Schantz, by understanding how it works and what it is used for, you can be confident that the process of purchasing life insurance coverage will go as smoothly as possible. Understanding the role your Social Security number plays in obtaining life insurance can also help give you peace of mind knowing that your loved ones are protected should something happen to you.

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