Felonies have a way of affecting and creating complications for many issues, which also include purchasing life insurance policies. If you intend to get life insurance for someone who is currently in jail, you are going to encounter a lot of roadblocks. This is because most insurance companies do not approve life insurance for felons.
Insurance companies see a higher risk in insuring a person who is in jail, which is one of the reasons they do not offer them insurance coverage. Felons who have already been released from jail have higher chances of getting insurance coverage than felons in jail. However, it is still challenging to get life insurance for someone with felonies.
Some insurance companies may consider felonies as a high-risk factor, making it quite expensive and hard to get for felons. However, it is possible to steer these difficulties to make getting insurance for felons possible. This write-up contains the information you need to get life insurance for felons.
Do Life Insurance Companies Check Criminal Records?
Life insurance companies will check the criminal records of customers who intend to purchase life insurance. Sometimes the life insurance application will contain questions concerning any prior conviction on the applicant’s records. However, insurance companies will likely take a background check on their customers.
If a criminal record is found during their check and they realize you didn’t disclose some information in your record, you may be rejected for life insurance by the company. Also, you will receive an alert on your consumer file with the Medical Information Bureau (MIB). When you try a new insurance company and they are part of the MIB, the insurer will see the alert and conduct more investigation before offering coverage options.
How to Buy Life Insurance as a Felon
To begin the process of buying life insurance, it is important to understand how insurance companies see the risk you show. Also, you need to be aware of the factors that insurers consider when approving coverage for felons to help you improve your chances of identifying the right insurer. These factors include:
Risk Reduction
Felons are generally considered high-risk to insure. For this reason, most insurers are uncertain to take these people as clients. Luckily, every insurance company determines risks differently. There are different ways you can lessen the risk insurance companies see.
One of these ways is by being honest and having the right details of your imprisonment available. A felon risk is determined by the consideration of the following factors:
- The prevalence of criminal activity.
- The acuteness of the crime.
- The number of times that passed since the imprisonment happened.
Depending on the type of crime you are imprisoned for, you may also be able to get life insurance coverage soon after completing your sentence.
Finding an insurer
Insurance companies measure risks using their set of metrics, so they may not have the same decisions when determining whether or not to insure a felon. Because of this, it is a good idea to research every insurer before purchasing a policy quote. You may also have the best luck if you work with a licensed insurance agent who has experience with insurance companies that insure felons.
Choosing a Policy
If you intend to get life insurance as a felon, you may find a guaranteed insurance policy best for you. This insurance policy offers coverage ignoring whether you have a criminal record or medical record. Keep in mind that guaranteed insurance policies are more costly than other life insurance policies, such as term life. This may be a reason why they may not be the best option for felons with a tight budget.
How Does Felony Affect Your Ability to Purchase Life Insurance?
Having a felony on your record can affect your ability to purchase life insurance in different ways. If you have a serious offense or repeated offenses, an insurance company may not accept your insurance application.
It is important to be aware that life insurance companies only consider customers who are not in jail presently. In cases where you are still in jail or are awaiting trial, you will be required to wait until the case is done and you are no longer imprisoned. Because of this, it is impossible to get life insurance for someone in jail.
What Types of Felonies Make You Ineligible for Life Insurance?
All insurance companies have their guidelines on what felons they are willing to insure. In some cases, an insurance company may decide not to offer insurance coverage to someone with a particular felony while another would. Some of the types of felonies that make you ineligible for life insurance include:
- Sexual assault.
- Kidnapping
- Murder
- Conspiracy to commit any of the listed charges.
Also, some insurance companies may offer life insurance to felons with drug trafficking charges. While most drug-related charges are no longer viewed as completely prohibited, it still depends on the acuteness of the charge and what type of substance is involved.
