Best Life Insurance for Felons in 2024
It is possible to find life insurance for felons, though you may find that certain companies are unwilling to provide coverage. Life insurance for felons is likely to cost more because you will be considered a high-risk policyholder. As you search for life insurance coverage as a felon, you may want to consider a group life insurance plan provided by your employer or a guaranteed issue whole life policy.
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Heidi Mertlich
Licensed Life Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Life Insurance Agent
UPDATED: Nov 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Nov 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Obtaining life insurance for felons can be tough, but not impossible.
- There are life insurance options for those with a misdemeanour offense or felony charges.
- There are many other factors that add to the complexity of getting a life insurance policy.
There are many things a traditional life insurance company might consider when determining rates for felons as you can see from our sample life insurance rates page. Getting life insurance for felons can seem daunting. Do life insurance companies do criminal background checks on a life insurance application? They do.
For those awaiting their day in court after being charged with a felony, life insurance companies will usually not offer you a policy until after a verdict is reached. Traditional life insurance terms can be available to those that committed a misdemeanour or minor felony over five years ago. It is very rare to find a company that would award life insurance with no background check during the application process. A felon can get life insurance, but they will be viewed as a high-risk client.
Depending on the nature of the conviction, along with the amount of time that has passed since, you may still have some options. How else does a felony affect life insurance? Read on to find out. Can you get a life insurance policy for felons? Because you’ll be seen as high-risk, prices will be high, it’s important to search for affordable life insurance plans for felons in your area.
How much does life insurance cost?
How long your coverage lasts. Rule of thumb: Your term should last at least until you retire, and should also cover your longest financial obligation (like a child’s college costs).
The amount your loved ones would receive if anything should happen to you before your policy expires. Rule of thumb: Most financial planners recommend an amount 10-15x your current income.
Monthly estimates for life insurance rates are influenced by a number of factors, but your health has the biggest impact on the final cost.
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Do life insurance companies check criminal records?
When applying for life insurance with a criminal background (i.e., a felony conviction or misdemeanour) remember that insurance companies will deem you a high-risk client with a felony record. When applying for life insurance, an individual is assessed based on a set of potential risks to the carrier. The agency then decides to either approve the policy without restrictions, approve it with higher rates, or deny it.
In assessing an individual with a criminal history, an insurance company has to consider the impact incarceration might have had on the person’s well-being. Incarceration is undoubtedly a traumatic experience, one that can take a toll on mental and physical health.
But there’s also a higher chance of contracting certain diseases while in prison, which could ultimately result in death years later. Drug use is sometimes closely related to incarceration, and will also be considered by the life insurance company. These factors may result in premature death.
What will life insurance companies ask about your criminal record?
In the early stages of applying for life insurance, companies may ask the candidates a series of questions to determine the risk involved with the new policy. For those with a criminal background, companies may ask:
- What type of felony were you charged with?
- How severe was the crime?
- Were you incarcerated? How long?
- How long ago was it?
- How have you turned your life around?
- Was there a probation period?
The answers to some of these questions may make it hard to find life insurance. For example, those convicted of drug/alcohol-related crimes might find it harder to find life insurance, due to their possible health risks. Most major felonies will also prevent you from getting life insurance, including rape, murder, etc. However, it is important to answer these questions honestly, so that your agent can help determine the best life insurance rates for felons possible.
What life insurance options do felons have?
Can felons get life insurance? If you’re trying to get life insurance as a felon, but have been turned down, you have three choices for a more accessible policy:
- Group life insurance through your employer – If you work for a company and they provide life insurance, you could get a life policy through that program. Keep in mind that the coverage is effective as long as you work for them. Generally, this type of insurance does not require a background check from the insurance company. Typical coverage amounts range from $25,000 to $50,000.
- Accidental death and dismemberment insurance – This policy pays benefits for death caused by an accident. A death resulting from a heart attack or stroke won’t be covered. This isn’t ideal, but it’s better than nothing.
- Guaranteed issue – This policy has a two to three years graded benefits clause, which means that, if you die within two to three years, no death benefit will be paid; instead the beneficiaries will collect the total premium paid plus 10% interest. The max amount on guaranteed issue life insurance for convicted felons (or anyone) is $40,000 and you must be over the age of 40.
Can a felon get a life insurance license? Can a felon sell life insurance? There are some felonies that bar you from getting your insurance license, but can a felon work in insurance? It is up to the individual insurance company to decide if they wish to hire a formerly incarcerated person.
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What life insurance companies offer policies to felons?
As we mentioned before, every carrier will look at your situation differently. However, you’ll want to keep in mind that the most lenient carrier is Prudential. Prudential uses “underwriting credits.” In plain English, that means that, if someone is overweight and between the ages of 18 and 59 and has no other medical issues, metabolic syndrome, or diabetes, they could get a policy for a preferred rate instead of a standard one. They give customers “credits” for overall health and don’t concentrate too much on weight.
The same goes for a felony. If you can show an outstanding recovery and rehabilitation, you may get a better rate. It’s doubtful this would be preferred, but a standard to table 4 would be the norm. (You would expect to pay two to three times as much as someone who has preferred table ratings.) Keep in mind that underwriting guidelines are changed frequently, and what is true today may not be accurate in a few months.
If you have a felony conviction on your record, talk to a broker who is familiar with the underwriting guidelines of every carrier out there. It costs you nothing, and you have someone on your side who wants you to have a policy because this is how they make their living.
Can I get life insurance while on probation?
Unfortunately, that’s not usually an option. Life insurance companies require a one-to-five-year waiting period after probation has ended to obtain coverage with a standard rating class. (It all depends on the company’s underwriting.) The further back your criminal activity happened, the better.
Many life insurance companies don’t want to insure a person on probation because there is a higher likelihood of returning to jail and life insurance for inmates is nearly impossible to obtain.
The criminal justice system is still monitoring someone on probation, and any small violation can place him or her in prison once again.
Former felons looking to buy life insurance should always be honest. The first thing the carrier does when they get an application is a background check. If you lied on the application, they will deny your application without giving you a chance. And keep in mind that being denied life insurance with one carrier will open the doors for others to follow suit.
How can you get life insurance with a felony conviction?
The reality is that it isn’t easy for people with felony convictions to get life insurance. It can be very frustrating, and the underwriting process might be longer than the usual four to six weeks. There are two routes you can take:
- Call and apply to all the carriers out there and hope to get your application issued. Lots of time and trouble go into this.
- Call one broker who deals with all the insurers and just be honest about what happened. You will get a clear answer on your chances of getting a life insurance policy and how to accomplish it. (Once again, the type and severity of the conviction, along with the period of time that has passed since, will have a major impact on the kind of coverage you’ll be able to get, how much you will pay, or whether you will get one at all.) An independent broker can advise you about other options you may have if your application for a conventional policy is declined.
Life insurance with a misdemeanour is easier to obtain; often, insurance companies won’t even ask about it.
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Can a felon get a life insurance license?
If you’re interested in selling life insurance, you may be wondering, “can I get my insurance license with a felony?” You may be able to become a licensed insurance agent if you have a felony on your record, but you’ll have to do some research to find the companies or agencies that will employ you once you’re a licensed agent.
A felon can get a life insurance license to sell insurance life insurance either as an independent agent or as an agent with a specific company. But there are certain felony convictions that will not allow you to apply for an insurance license. These convictions include:
- Felony of the first degree
- Capital felony
- Felony involving money laundering
- Felony involving fraud or embezzlement
- Felony directly related to financial services
If your felony conviction does not fall into any of the categories listed above, you may find that you can sell life insurance with a felony.
You can apply for an insurance license at any time. But you may want to run a background check on yourself before you do so, as this will help you know what a company will find when they do the same. Remember to be forthcoming with all of your information, as keeping a felony from a potential employer may be considered fraud, which is punishable by law.
As you search for the right life insurance coverage, be sure to use our free quote tool below to compare quotes from multiple companies and find coverage options and monthly rates that work for you.
What are some important tips on life insurance for felons?
When applying for life insurance, be sure that you write an exceptional cover letter describing your situation as is described by the Harvard Business Review. Tell the company what happened, and take full responsibility for your conviction. If you can show a stable workplace, some education, and a connection to service in your community, you will have a far better chance of getting your life insurance policy issued. Also, be sure to research policies specific to your area.
The table below will give you an idea of the average cost of life insurance from some of the larger life insurance companies.
Average Annual Life Insurance Rates by Age & Gender
| Policyholder Age and Gender | Average Annual New York Life Rates | Average Annual Prudential Financial Rates | Average Annual Lincoln National Rates | Average Annual Massachusetts Mutual Rates | Average Annual Aegon / Transamerica Rates | Average Annual John Hancock Rates | Average Annual State Farm Rates | Average Annual Overall Rates |
|---|---|---|---|---|---|---|---|---|
| 25-year-old female | $158.00 | $195.00 | $187.00 | $132.00 | $164.00 | $172.00 | $143.00 | $164.50 |
| 25-year-old male | $152.00 | $237.00 | $231.00 | $147.00 | $176.00 | $178.30 | $164.00 | $183.61 |
| 35-year-old female | $164.00 | $196.00 | $191.00 | $137.00 | $161 | $178.30 | $166.00 | $170.47 |
| 35-year-old male | $160.00 | $248.00 | $238.00 | $151.00 | $17.00 | $189.80 | $175.00 | $190.40 |
| 45-year-old female | $262.00 | $314.00 | $239.00 | $209.00 | $229.00 | $241.50 | $238.00 | $247.50 |
| 45-year-old male | $245.00 | $378.00 | $283.00 | $230.00 | $255.00 | $292.10 | $239.00 | $274.59 |
| 55-year-old female | $414.00 | $496.00 | $435.00 | $373.00 | $453.00 | $407.10 | $341.00 | $417.01 |
| 55-year-old male | $696.00 | $584.00 | $615.00 | $451.00 | $527.00 | $533.60 | $396.00 | $543.23 |
| 65-year-old female | $924.00 | $941.00 | $903.00 | $763.00 | $1,139.00 | $937.30 | $684.00 | $898.76 |
| 65-year-old male | $1,416.00 | $1,412.00 | $1,577.00 | $1,049.00 | $1,367.00 | $1,380.00 | $955.00 | $1,308.00 |
Insurance companies want your business, but not for any price. The underwriting method provides them with time to perform their groundwork and get to know you before deciding whether or not you’re a good match for them. Despite the hurdles, obtaining a life insurance policy with a criminal background is possible. Life insurance for felons can be easily found.
Life Insurance for Felons: Case Studies
Case Study 1: Guaranteed Issue Life Insurance
John, a 40-year-old man, has a felony conviction from five years ago and is looking for life insurance coverage. He understands that traditional life insurance companies may view him as a high-risk client due to his criminal record. However, John discovers guaranteed issue life insurance.
John decides to purchase a guaranteed issue life insurance policy with a death benefit of $50,000. This type of policy does not require a medical exam or any health questions, making it accessible to individuals with felony convictions. Although the premiums for guaranteed issue policies are typically higher, John believes it’s worth it to provide financial protection for his family. He pays a monthly premium of $150, ensuring that his loved ones will receive a payout upon his passing.
Case Study 2: Term Life Insurance With Improved Rates
Sarah, a 35-year-old woman, was convicted of a non-violent felony eight years ago. She wants to secure life insurance coverage to protect her family’s financial future. Sarah explores different options and finds a term life insurance policy with improved rates for individuals with past convictions.
Sarah applies for a 20-year term life insurance policy with a death benefit of $250,000. The insurance company considers her conviction, but takes into account the time elapsed and her rehabilitation efforts.
As a result, Sarah is offered a policy with rates that are slightly higher than standard rates but more affordable compared to other options. She pays a monthly premium of $80, providing her family with financial protection during the term of the policy.
Case Study 3: Graded Benefit Life Insurance
Mark, a 50-year-old man, has a felony conviction from 15 years ago and is looking for life insurance coverage. He understands that his criminal record may limit his options, but he discovers graded benefit life insurance, which offers coverage for individuals with past convictions.
Mark decides to purchase a graded benefit life insurance policy with a death benefit of $100,000. This type of policy has a waiting period, typically two to three years, during which the full death benefit is not payable. However, if Mark passes away during the waiting period, the policy will still provide a partial payout to his beneficiaries.
After the waiting period, the full death benefit becomes payable. Mark pays a monthly premium of $120, ensuring that his family will have some financial protection in the event of his passing.
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Frequently Asked Questions
Can felons get life insurance?
Yes, felons can generally get life insurance coverage. However, the availability of coverage and the specific terms may vary depending on the insurance company and the nature of the felonies committed.
Will my criminal record affect my ability to get life insurance?
Yes, your criminal record can potentially affect your ability to get life insurance. Insurance companies consider various factors, including the severity of the felonies, the time elapsed since the conviction, and any rehabilitation efforts. Some insurance companies may deny coverage or charge higher premiums for individuals with certain criminal convictions.
Can I get life insurance if I am currently incarcerated?
It is typically challenging to obtain life insurance while incarcerated. Most insurance companies require the applicant to be physically present and actively involved in the application process. However, some companies may consider applications on a case-by-case basis, especially for individuals nearing their release dates.
Are there any specific types of life insurance policies available for felons?
There are no specific types of life insurance policies exclusively available for felons. However, some insurance companies specialize in providing coverage to individuals with high-risk profiles, including those with criminal records. These companies may have more lenient underwriting guidelines and offer policies tailored to individuals with challenging backgrounds.
How can I improve my chances of obtaining life insurance as a felon?
There are several steps you can take to improve your chances of obtaining life insurance as a felon:
- Disclose your felony conviction: Be honest and transparent when filling out the application, providing accurate information about your criminal history.
- Shop around: Different insurance companies have varying underwriting guidelines, so it’s important to explore multiple options to find a company that may be more lenient or understanding of your circumstances.
- Work with an insurance agent: An experienced insurance agent who specializes in high-risk cases or works with individuals with criminal records can help navigate the process, find suitable options, and advocate on your behalf.
- Show rehabilitation efforts: Highlight any rehabilitation efforts you have made, such as completing educational programs, counseling, or community service. Demonstrating positive changes in your lifestyle can help mitigate concerns about risk.
Can my felony conviction prevent me from obtaining life insurance altogether?
In some cases, certain felony convictions or circumstances may make it challenging to obtain traditional life insurance coverage. However, alternative options, such as guaranteed issue or graded benefit policies, may still be available. It’s crucial to explore different insurance companies and work with an experienced insurance agent to find potential options.
Will my felony conviction affect the payout of a life insurance policy to my beneficiaries?
In most cases, a felony conviction does not affect the payout of a life insurance policy to beneficiaries. Once a life insurance policy is in force, the criminal history of the insured does not generally impact the death benefit paid out to the beneficiaries upon the insured’s passing.
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Heidi Mertlich
Licensed Life Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Life Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.