Getting life insurance for someone in prison is a common life insurance question that we receive as veteran life insurance brokers.
Prison can be a dangerous place with a lot of health risks from bodily injury to disease.
When a person goes to jail, it can be a reality check to their mortality that can spur the thought of buying life insurance.
Can you get life insurance for someone in prison? Yes, you can buy life insurance for someone in prison, but your options are limited. Guaranteed issue life insurance policies may be available for burial and final expenses. Traditional life insurance companies will not write coverage for someone in prison and high-risk life insurance will require large premiums if they are willing to approve the policy at all.
Since prison is such a dangerous place, the average person is limited to guaranteed issue burial insurance.
Take a look at the cost of guaranteed issue burial insurance with our free rate comparison tool that will showcase the rates fo the best-guaranteed issue life insurance policies.
Our article will cover the following information about life insurance for felons and prisoners.
- How to Get Inmates Life Insurance in Prison?
- What if I already Have Life Insurance and Go to Jail?
- Can I Get Life Insurance with a Criminal Record?
- Final Thoughts on Getting Life Insurance for Someone in Prison
How to Get Inmates Life Insurance in Prison?
Even the best life insurance companies in the United States will shy away from insuring inmates in prison.
There are several reasons why life insurance options to prisoners are limited.
Outside of the health risks in prison, financial justification is usually not there to establish an insurable interest.
Additionally, prison presents logistic challenges to completing the health exam, signing the paperwork, and paying the premiums in some cases.
It simply is not a risk that most life insurance companies will take, which severely limits your options.
Generally, life insurance coverage for the average person is unavailable, but there are a few specific types of life insurance policies that you can get in prison.
The most common policy available to inmates in jail is a guaranteed issue life insurance policy.
Guaranteed issue life insurance is a specific type of life insurance not to be confused with no-exam life insurance, which still has non-medical underwriting.
Almost every no-exam life insurance policy will ask about your criminal history, so you want to be sure you’re applying for the right type of policy.
Most guaranteed acceptance whole life policies are limited to $25,000 in death benefits and are meant to cover burial costs and final expenses.
Guaranteed acceptance whole life policies usually ask no medical questions and no criminal history questions.
Instead, guaranteed issue life insurance comes with a modified death benefit in the first 24 months of the policy that returns your premiums plus interest if you die of a medical condition.
Usually, accidental deaths are covered by guaranteed issue whole life policies from the first day.
After the modified death benefit period is over, the full death benefit will pay for any covered death.
The problem with guaranteed life insurance is that most policies require you to be 50-years old to purchase them, which can exclude a large swatch of younger inmates from coverage.
We do work with one guaranteed issue life insurance company called Great Western Life that will offer coverage to people in their forties.
If you are looking for any larger amounts of life insurance coverage beyond final expense coverage, your options are extremely limited.
For certain high-profile people, you may be able to get a policy through a specialty insurer like the Lloyds of London that will offer greater coverage, but it will cost you.
These types of policies are rare and similar to accidental death insurance.
Celebrities like Martha Stewart would be a good example of someone who may qualify for such coverage, but an everyday average Joe wouldn’t be a good fit.
What if I already Have Life Insurance and Go to Jail?
Generally speaking, if you already have life insurance in force, it will cover you if you go to jail as long as you don’t die while committing an intentional criminal activity.
Privately purchased life insurance policies are the better option here compared to group policies provided by your employer.
When you are separated from your employer, you typically will lose your benefits regardless of the reason for your separation.
Many group life insurance policies have a portability option that allows you to pay the full cost of the policy and take it with you when you leave your job.
However, a portability option can be very expensive compared to owning your own private life insurance policy.
Typically, your group policy increases in cost as you get older.
Since most group life insurance policies have little or no underwriting, these price jumps can be considerable, so it is better to go with private life insurance when possible.
Can I Get Life Insurance with a Criminal Record?
Once you get out of prison, more term life insurance options will become available.
However, just getting out of prison is only one component of getting life insurance with a felony.
Life insurance companies will want to see that you assimilate back into society after your prison stay.
They will want to see that you are able-bodied, establishing relationships, and working a steady job.
Even then, the reason that you went to prison in the first place will still be considered.
Certain violent crimes, such as murder, can make you uninsurable even years after your prison stay.
Additionally, the life insurance companies will still look at your overall health as well.
If you contracted a disease while in prison, that can affect your rates.
If you’re trying to get life insurance with a pre-existing condition, you should contact a high-risk life insurance broker to increase your odds of getting covered at a great price.
Final Thoughts on Getting Life Insurance for Someone in Prison
Getting life insurance for someone in prison is difficult due to the mortality risks of prison and logistical challenges of underwriting someone in jail.
If you are a high-profile individual, such a celebrity, there may be life insurance policies available to you through specialty life insurers, but they will cost you.
The everyday person will be limited to guaranteed issue life insurance policies that will provide enough death benefits to cover burial costs and final expenses.
You can use our free life insurance rate comparison tool to compare the rates and options that are available to someone in prison.
If you own a life insurance policy before you enter prison, it should generally cover you while you’re in prison; although, be sure to read your policy to be certain of this.
Once you are released, your felony record and criminal history will still be considered.
Reaching out to a high-risk life insurance broker will increase your chances of getting covered at a good value, especially if you have a pre-existing health condition.