Can you get life insurance with a felony?

If you have a criminal record, depending on whether you have a felony or misdemeanor, you may not be able to get life insurance. Life insurance premiums are based on your risk to insurance providers, and having a felony criminal record is seen as a high-risk for many life insurance companies.

That doesn’t mean there are no life insurance options for those who have a felony, though; you may just need to shop around more.

How a felony affects your life insurance application
Both a criminal record and jail time are seen as a risk for life insurance providers. According to the Bureau of Justice Statistics, “Half of state and federal prisoners and local jail inmates reported having a chronic condition [and] 21% of prisoners and 14% of jail inmates reported having an infectious disease.” It noted that incarcerated individuals were more likely to have health problems than the general American population.

Every life insurance company treats having a criminal record differently, and some do not provide insurance to those with a felony. You could be able to get life insurance if you have a felony, but you will have to find a life insurance agent that deals with high-risk applicants.

“For some insurance companies, a felony is uninsurable, but different companies handle felonies differently,” said Jackie Morales, chief insurance officer at Bestow Life.

Morales also noted that other insurance companies look at the passage of time between your conviction and your application. “If it is a recent felony, Bestow offers other avenues through an affiliated partner who deals with higher risk or specialty medical risks.”

A misdemeanor may not prevent life insurance coverage
If you are convicted of a felony on behalf of the US government, the definition of felony is uniform across the nation. However, if you are convicted by the state, the definition of a felony as opposed to a misdemeanor varies from state to state, according to Morales.

Morales said, “Some states say that one DUI is a misdemeanor and more than one is a felony.” Because the definition of a felony and misdemeanor varies on the state level, it’s important to know the distinction.

How to get insurance if you have a felony
If you have a felony and you’re looking for life insurance, you will have to find an independent agent works with multiple insurance companies and is familiar with finding coverage for someone with a felony record.

If you had life insurance before your felony conviction, it is best to continue those payments. If you do not have life insurance and have a recent felony, it will be hard to get coverage due to the recidivism rate for prisoners. The Bureau of Justice Statistics stated that “over two-thirds of released prisoners were rearrested within three years.”

The type of felony and the length of time between your incarceration and probation will be key factors for life insurance companies that do insure felons. The passage of time helps.

Morales advised giving truthful information on your life insurance application. If you are not sure, pause your application until you have all the information. Not answering truthfully can cause your application to be rejected. If your application is approved and you failed to disclose the extent of your criminal history, it can prevent your beneficiaries from receiving your death benefit.



Alternatives to traditional life insurance if you have a felony
If you are denied an application for life insurance, there are some alternatives.

The first option is to see if your employer offers group life insurance.

Group life insurance is a term life policy offered by employers to employees. That means that all employees are accepted. One disadvantage of employer-provided group life insurance is that if you leave your job (resign, retire, or are terminated), you lose your coverage.

Guaranteed issue life insurance is also referred to as final expense/burial insurance because the coverage amounts are so low that they basically only cover funeral and burial expenses. There is no exam or health questions and approval is guaranteed, but guaranteed issue coverage is typically limited to $25,000 and a waiting period. It is limited to those age 50 and older.

According to ColonialPenn, there is usually a two-year waiting period for guaranteed issue life insurance, meaning that if the policyholder dies within the first two years of having coverage, the policy won’t pay out.

Check out those guaranteed issue life mailers that might arrive in your mailbox from ColonialPenn or Mutual of Omaha. Most of these offers are for low coverage amounts, but some coverage is better than none at all.

Ronda Lee
Founder, Editor-in-Chief
Ronda is an attorney, writer, and entrepreneur. She is a contributing writer for the Huffington Post. Originally from Chicago, she has lived in Los Angeles and New York. She loves to travel and is passionate about education equity, especially for first generation college students.