You can still apply for a life insurance policy if you have a criminal record. However, the details of your criminal history could impact your eligibility for insurance coverage.
Having misdemeanors or lesser infractions on your record usually won’t change your premiums. But if you have a felony conviction, you’ll likely have to wait a few years before you’re able to get approved for a policy, and your coverage may be more expensive.
Why do life insurance companies check your criminal record?
Life insurance companies weigh the risk of insuring you using data — scientific studies and actuarial tables — to make judgments about the likelihood that you’ll die while covered by your life insurance policy. Insurers use this data to determine how much you’ll pay for your coverage.
Insurers’ data shows that people with criminal records tend to live shorter lives, especially people who have been convicted of felonies. But life insurance companies also don’t look at every conviction or criminal record the same way, so your rates depend on your personal situation.
How can a criminal record affect your life insurance application?
When you apply for life insurance, you’ll be asked questions about your criminal history to find out whether you’re currently being charged with a felony or whether you have been convicted as a felon. Below are a few different scenarios and how they can each impact your application process.
If you’re currently being charged with a felony, you won’t be able to get life insurance until the charges are dismissed or the trial is over.
If you’ve been convicted of a felony, the type of felony, how long ago it took place, and number of offenses in your history all impact whether or not you can get coverage. It’s unlikely you’ll be approved with a violent felony or repeated felonies on your record, but insurers may offer some flexibility depending on your personal situation.
If you’re currently on probation, on parole, or in jail, insurance companies won’t approve your application until you’ve been off probation for at least one year.
If you’re convicted of a misdemeanor of smaller infraction, you can usually apply for life insurance as you normally would. A misdemeanor or other lesser charge is unlikely to affect your insurability or your premiums, unless you have multiple or recent misdemeanors or you have a recent DUI/DWI conviction.
No matter your situation, it’s best for you to be honest about your entire criminal record, including less serious infractions.
Life insurance companies are thorough in their application review, and if you aren’t forthcoming about your criminal record, the insurer can find out through your background check.
Plus, lying on your application is a type of life insurance fraud, and the insurance company will have the right to decline your policy. Other insurers will then be able to see you were denied coverage, and may be less likely to consider your application in the future.
How to buy life insurance if you have a felony conviction
Most of the time, you can still buy life insurance if you’ve had a felony conviction in the past and you’re no longer on probation. Working with a licensed life insurance agent will help you understand your options.
1. Don’t wait too long to look for a policy
While it can be more costly or difficult to get life insurance in the first one to two years post-probation, it’s risky to go without a policy and leave your loved ones without financial protection.
Each insurer requires a different waiting period post-probation before accepting life insurance applications. Some insurers accept applications in the first one to two years post-probation, others only accept applications five years post-probation, and a few require applicants to be 10 years post-probation.
We recommend applying around 18 months post-probation – this is usually when people with criminal history can get approved for a policy. Even if you can’t get approved right away, a life insurance agent can help you start researching your policy choices.
If your premiums are more expensive at this point, you can opt for a shorter term or lower coverage. You can also apply for a rate reconsideration or purchase a new policy in the future when you’d qualify for lower premiums.
2. Apply with an independent broker
Working with an independent broker is the best way to ensure you’re getting the best possible life insurance policy available to you.
Each company treats felonies on your record differently, so a broker can compare guidelines from different life insurance companies to ensure you’re applying with one that’s a good fit for you. This can ensure that you’ll get covered as soon as you can, at the lowest rates possible.
From here, you’ll complete the application process as normal — which includes filling out paperwork, taking a medical exam, and waiting for the insurance company to review your profile.
Learn more about how to buy life insurance
3. Consider other types of life insurance
If you don’t currently qualify for traditional term life or whole life insurance, you may have two other ways to get covered.
Group life insurance: Group life insurance is often offered by employers as part of a benefits package. The coverage is subsidized by your employer, so it’s cheap, or even free, and you’re eligible regardless of health status or criminal history. Group plans usually offer one or two times your annual salary in coverage.
Guaranteed issue life insurance: Guaranteed issue life insurance is a type of final expense insurance that doesn’t require a medical exam and doesn’t have health or criminal record restrictions. These policies offer a small amount of permanent coverage — usually up to $25,000. Premiums are steep compared to term life insurance, and you typically have to be 45 or older to apply.
