Having a criminal record will not prevent you from applying for a life insurance policy. 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, getting life insurance will be more difficult and could be more expensive, especially in the first few years after your conviction.
Why life insurance companies care about your criminal record
Life insurance companies weigh the risk of insuring you using data — scientific studies and actuarial tables — to make best-guess judgments about the likelihood that you’ll die while covered by your life insurance policy.
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.
How a criminal record affects your life insurance application
When you apply for life insurance, you’ll be asked questions about your criminal history to find out whether you are currently being charged with a felony or whether you have been convicted as a felon.
Your answers influence your eligibility for a life insurance policy and how high your rates will be.
When you speak with your insurance agent, 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 will find out when they do a background check.
Plus, if you lie about anything on your application, the insurance company will have the right to decline your policy. Other insurers will then be able to see your insurance application information, and may be less likely to consider your application.
How your answers to the felony question affect your application if you are:
How to buy life insurance if you have a felony conviction
Working with a licensed agent is the best way to ensure that you are getting the best possible life insurance policy available to you. Most life insurance companies will be able to offer you insurance coverage after you have been off probation for one year.
Depending on the type of crime you were convicted of, your rates could vary between insurance carriers. An agent will make sure that you apply with the insurer that can offer you the most competitive life insurance rates.
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 so that an agent can help you find the best provider and policy option for your situation.
You’ll secure coverage for your loved ones sooner and can apply for a rate reconsideration or purchase a new policy in the future when you’d qualify for lower premiums.
2. Choose the right life insurance agent
If you have a criminal record, work with an independent insurance agent or broker like Policygenius.
Different insurance companies treat felonies on your record differently, and an agent who knows the market can help you choose the company most likely to offer you the most affordable coverage.
Some agents may also be able to recommend a broker that specializes in high-risk cases.
3. Consider other options
If your life insurance application is declined or you’re unable to apply for term life or whole life insurance, you may have two other ways to get covered:
Group life insurance: If your employer offers group life insurance, you are eligible regardless of health status or criminal history. While most group plans offer less coverage than you may need, you’ll still be able to get some 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. Premiums are steep compared to term life insurance and benefit amounts generally max out at $25,000.
If you’ve ever been convicted of a felony, speak with an insurance agent before applying for life insurance. They can help answer any questions you have and find the best policy for your situation.