Over a million people in America are behind bars, and most of them are guardians or parents of small children. Individuals with criminal records are known as felons and due to the higher premiums resulting from the risk with their criminal history, obtaining life insurance would be difficult.
To boost their chances of obtaining life insurance, felons could research more liberal insurance companies. They should also consider other choices, such as guaranteed issue policies or group life insurance provided by businesses. This post will cover all you need to know about criminal life insurance.
Do Life Insurance Companies Check Felons Criminal Records
Life insurance providers conduct thorough background investigations on criminals, including analyzing their criminal history. These evaluations assist insurers in determining the risk associated with providing coverage to an applicant.
An applicant’s criminal record may reveal details about their lifestyle and prospective risk factors, influencing the underwriting process and policy terms. Depending on the type of offense, how long it has been since the conviction, and whether or not the individual changed their lifestyle after the conviction, a criminal record can have different effects.
What Will Life Insurance Companies Ask About Your Criminal Record
Companies may pose several questions to applicants when they first apply for life insurance to gauge a felon’s level of risk tolerance. In addition, life insurance providers may query felons with a criminal history if they have:
- What kind of crime did you face charges for?
- To what extent was the offense committed?
- Were you imprisoned? And how long?
- When was that, exactly?
- How have you changed the course of your life?
- Was there a trial run-in?
Depending on how some of these questions are answered, finding life insurance for felons may be challenging. For example, people convicted of drug or alcohol-related charges may find it difficult to obtain life insurance due to significant health hazards.
The majority of serious felonies, such as rape and murder, will prevent you from getting life insurance. To assist your agent in finding the best life insurance rates for offenders, you must submit honest answers to these questions.
How Much is Life Insurance for Felons
There is a slim chance that you will be able to obtain coverage at standard rates after receiving a felony. Whether you have other criminal background check blemishes or not will likely determine how serious your conviction was. These rates might be similar to what you get from different companies if you can obtain standard life insurance rates for a whole-life policy. However, your felony will likely result in higher-than-average rates for you.
Factors Life Insurance for Felons Consider
Felons who satisfy specific requirements are generally qualified for standard life insurance policies because they pose less of a risk to insurance providers. These standards may consist of:
Time since conviction
Traditional life insurance may be an option for felons who were convicted ten years or more ago. A long period has passed since the conviction, which may suggest a steady, low-risk lifestyle.
Status on probation or parole
Individuals who have not been on probation or parole for a minimum of ten years may be eligible. This demonstrates that the legal criteria were met over a long period.
Types of crimes
Offenders with non-violent felony convictions may have a higher chance of getting traditional life insurance. People having a history of violent crimes are typically considered more hazardous by insurance providers.
Each insurer has its eligibility requirements. Some insurers may restrict life insurance coverage for persons with a criminal record or those in custody, regardless of how long it has been since the conviction. Compare the many types of life insurance and inquire about your alternatives to ensure that you acquire the best coverage for your specific scenario.
How to Get Life Insurance for Felons
Before you begin the life insurance application process, you must first understand how insurance companies assess your risk. Furthermore, to increase your chances of finding a suitable provider, you should be aware of the factors that life insurance companies take into account when granting coverage to felons.
Reduce risk
Incarcerated individuals are often considered high-risk liabilities by insurance carriers. However, providers approach risk differently. To lessen the risk, be candid and disclose incarceration information. The risk profile of a felony depends on factors such as crime severity, frequency, and time since conviction. Post-sentence eligibility and positive life adjustments, such as a stable job, can boost the insurance company’s image.
Find an insurer
Because insurance firms employ different risk assessment metrics, their decisions to insure persons with felony crimes may differ. To set expectations, it is advisable to research each carrier before receiving a quote on a policy. It is best to choose a certified insurance agent or broker who is familiar with insurance firms that provide coverage to convicts.
Alternatively, you might be able to locate a carrier by looking for companies that focus on hiring high-risk candidates. Before choosing a provider, get quotes from several to ensure you get the best coverage at the best price.
Choose a policy
A guaranteed issue policy might be your best option if you’re trying to obtain life insurance as someone with a criminal record. This policy covers you regardless of your criminal or medical history. Remember that guaranteed issue plans are usually more expensive than other types of life insurance, such as term life, so they may not be the best option if money is tight.