Finding affordable life insurance when you have a criminal record might be difficult. Life insurance for convicts might not be necessary, but finding low-cost, high-risk coverage could be. You must always be truthful on an application if you have a criminal past, even if it’s minor or if you have no record.
While a criminal background may not always end in an insurance application being denied, stating lies on the application could have serious consequences. There is no incentive to be dishonest, as a standard part of the procedure includes reviewing your life insurance history.
It might be difficult to predict how or when a life insurance company will consider a criminal background when determining prices or eligibility. There are, nevertheless, some standard practices to follow. On that note, let’s take a look.
How Does A Criminal Background Affect Your Life Insurance Application?
To determine the premium you’ll pay for life insurance; the company looks at several factors, including your age, health, and lifestyle, as well as hard facts like statistical research and actuarial tables.
According to insurance company statistics, individuals charged with a crime have a much lower life expectancy than the general population. Yet, life insurance agencies don’t treat all convictions and criminal records equally.
Applicants for life insurance will be subjected to a thorough background check, which includes inquiries designed to establish whether or not they have been convicted of a criminal offense in the past or are now facing felony charges. Your responses determine whether or not you qualify for life insurance coverage and how much you’ll have to pay for that coverage.
Always provide the truth about your criminal history, even if it just includes minor offenses. If you apply for life insurance and try to hide a felony conviction, the life insurance houston texas will discover it when they run a background check.
In addition, the firm will reject your coverage if you provide any false information on your insurance application. Additionally, future insurance providers will have access to your application history, decreasing the likelihood that you will be accepted.
How To Get Life Insurance If You Have A Criminal Conviction?
If you have been charged with a felony, you should not register for life insurance until at least one year has passed or until your probationary sentence has ended. When you apply, you’ll have to explain your conviction and pay more than someone without a criminal history would pay.
Don’t Delay Finding About Your Policy
Getting life insurance after probation may be more expensive or harder, but going without a policy leaves your loved ones vulnerable. After completion of probation, life insurance applications are often accepted by insurers after a varying waiting period.
When applying for insurance, some companies may approve your application within the first year or two after probation ends. In contrast, others may not do so until you’ve been off probation for five years, while some may set a 10-year minimum.
If you want an agent to assist you in choosing the best life insurance company and insurance option for your circumstances, you should apply about 18 months after your probation ends. You can have your family covered sooner, and if your circumstances change, you can always ask for a rate reduction or shop around for a policy change with more affordable premiums.
Pick The Right Insurance Agent
Independent insurance agencies and brokers are your best bet if you possess a criminal background. An experienced insurance representative can assist you in finding the insurance company that will provide you with the most cost-effective coverage, despite your criminal history, such as Franklin Life & Annuity. There’s a chance that a few brokers and insurance agents will know of one another who focuses on high-risk transactions.
Consider Alternative Options
If you are denied coverage through a traditional permanent or term insurance policy, you may still be able to obtain protection through guaranteed life insurance and group life insurance.
If your company provides collective life insurance, you can sign up regardless of whether or not you have preexisting conditions or a criminal record. You’ll likely be able to receive at least some health insurance through your employer’s group plan, even though that plan may not provide nearly as much protection as you believe you require.
Guaranteed life insurance is a form of last expense insurance that isn’t required to be renewed every year and doesn’t have any restrictions based on your health or criminal history. The benefit payouts often top out at $25,000, and the premiums are much higher than those of term life insurance.
If you’re someone with a criminal record and need help getting life insurance, Franklin Life & Annuity can help you out. We offer family life insurance and final expense insurance in Houston. Contact us today for more details.