Qualifying for life insurance often requires clearing certain hurdles, no matter who you are. But if you have a criminal record, getting a policy that protects your family or your business can be even more complicated.
The good news is that it’s still possible to get life insurance for felons in many situations, although it typically depends on the nature of your criminal history. If you’re in the process of rebuilding your life and want to financially safeguard the people you care about most, here’s what you need to know.
Can You Get Life Insurance If You Have a Criminal Record?
In many cases, you can get life insurance if you have a criminal record. When you apply for most life insurance policies, the insurer will look at several risk factors that could impact your life expectancy. First, it reviews your health history and perhaps requires you to take a medical exam. The company may ask certain questions about your lifestyle, too. Everything from your hobbies—especially if they’re dangerous pursuits like skydiving or mountain climbing—to your driving record can be open to review. So, too, can the presence of past criminal activity.
The circumstances around your past offense can weigh heavily on your ability to obtain a life insurance policy. However, a past conviction doesn’t necessarily mean you won’t be approved for coverage. The provider might want more information about your history and current standing before making a decision.
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Can You Get Life Insurance If You’re in Prison?
Every insurance company has its own guidelines concerning applicants with a criminal history. But typically, insurers won’t approve your life insurance application if you’re currently serving a prison sentence.
Even if you’re out of prison and on probation, qualifying for coverage can represent a hurdle. However, you may be able to buy a policy with some providers if you’ve been off probation for a certain length of time—often one year or more.
Factors That Determine Whether You Can Get a Policy
The exact criteria differ from one insurer to the next, although most companies consider the following factors when you apply.
The Nature of Your Crime
It’s easier to qualify for coverage if you were sentenced for a misdemeanor or nonviolent offense. Some companies won’t offer a policy if you committed a violent crime, such as sexual assault or homicide, or if your conviction was drug-related.
The Timing of Your Offense
Insurers may require a certain time to elapse after the end of your conviction—often five or 10 years—before approving your coverage. The longer you’ve had a clean record since your conviction, the easier it may be to take out a policy.
Whether You’re on Probation
You may have a harder time purchasing a policy if you were recently on probation or paroled. If you’re currently on probation, the insurance company may require a good reference from an employer or other third party before offering coverage.
Your Record Can Influence Policy Cost
These same factors can also affect your insurance cost. Even if you’re approved, the insurer may require you to pay higher premiums to account for the increased financial risk it’s taking on. Generally, the more serious the crime and the more recent your conviction, the more impact it may have on cost.
While it can be tempting to lie about a prior felony or misdemeanor on your application, it’s never a good idea. Deceiving an insurance company is a crime in and of itself, and it’s self-defeating. Life insurance companies check public records for an applicant’s potential criminal history, so they’ll likely find out anyway.
3 Ways to Obtain a Policy as a Felon
Purchasing life insurance with a criminal past can feel like an uphill battle. Even if you’re initially denied, though, you may be able to get financial protection for your loved ones or your business with these strategies.
1. Use an Insurance Broker
Brokers work with multiple insurers, including ones that may be more flexible with high-risk applicants. They can also help you navigate the underwriting process that insurance companies go through when you apply. So with a single point of contact, you can increase your chances of finding a carrier that will accept you.
Typically, you’ll still have to take a medical exam and undergo a background check to get approved. But if you’re out of prison and off probation, using a broker to guide your search can be a feasible option.
2. Take Advantage of Employer Plans
Your employer may offer a group policy, often term life insurance, as part of its benefits package. Unlike individual policies, the insurer underwrites the entire pool of employees who are eligible for coverage. The bottom line: Your criminal record doesn’t prohibit you from participating.
Employer policies usually pay a death benefit worth one to two times your annual salary. That may not be the ideal amount of protection for your family, although it’s better than no coverage at all.
One notable downside of group policies is that they usually expire when you leave the employer. But by that time, you may qualify for life insurance on the individual market or may be eligible for group coverage with your new employer.
3. Consider Guaranteed Acceptance Policies
Guaranteed acceptance life insurance is another possible alternative because it doesn’t require a medical exam or detailed background check. While it typically has higher premiums and lower coverage limits than traditional life insurance, it offers peace of mind by ensuring you can get coverage regardless of your history.
Often, these are whole life policies that enable your family to cover final expenses or pay down any remaining debts when you pass away.
Securing Life Insurance for Felons
Securing life insurance with a criminal history may present some challenges, but it’s possible with the right approach. If you’re turned down by other providers, one of your options may be a guaranteed acceptance policy that’s active for as long as you pay the required premiums.
Curious to learn more and get a quote? Reach out to a Colonial Penn representative today about how these policies can help safeguard you and your loved ones.
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