Incarcerated And Insured: Life Insurance For Prisoners

Life insurance is a challenging topic for incarcerated individuals and their loved ones. Most insurance companies do not offer traditional life insurance policies to those currently in prison due to the high-risk factors and shorter life expectancy associated with incarceration. However, some companies provide guaranteed issue policies or accidental death benefit policies for inmates, albeit with limited coverage and higher premiums. For those released from prison, obtaining life insurance is possible but may still be challenging and expensive due to their criminal record, with certain companies viewing charges as a risk factor.

Can an incarcerated person get burial insurance?

Burial insurance, also known as funeral or final expense insurance, is a type of whole life insurance policy that covers funeral, burial, and other end-of-life expenses. It is designed to relieve loved ones of the financial burden associated with these costs. While burial insurance is typically available for individuals between the ages of 50 and 85, it can be challenging for incarcerated people to obtain a new policy due to the high-risk factors associated with incarceration. Most insurance companies do not offer policies to those currently imprisoned, considering factors such as limited financial means and shorter life expectancy.

However, burial insurance for inmates is a specialised type of policy offered by select companies. It covers the costs and arrangements for a prisoner's burial or cremation, ensuring access to dignified funeral services. While it may be difficult or impossible to secure burial insurance while incarcerated, it can become an option after release. The eligibility and availability of burial insurance for inmates depend on various factors, including age, medical history, and lifestyle.

For those who are released from prison, burial insurance can become a viable option. Depending on their age and circumstances, they may qualify for term life or whole life policies. Some companies, such as Progressive, offer final expense and term policies with specific requirements for convicted felons over the age of 50. It is important to note that premiums may be higher for individuals with a criminal history.

In summary, while burial insurance is generally available for a wide range of individuals, incarcerated people face significant challenges in obtaining this type of coverage. The availability of burial insurance for inmates is limited, and it is primarily offered by specialised companies. Released individuals have more options but may still encounter higher premiums due to their criminal history.

What happens to existing life insurance policies?

If you had a life insurance policy in place before being incarcerated, it will remain valid as long as you continue to pay the premiums. This means that your beneficiaries will still receive a payout upon your death. However, this may not be the case for group life insurance provided by your employer, as these policies may not be convertible to individual policies. In such cases, you will likely lose coverage.

It is important to note that most insurance companies will not offer new traditional life insurance policies to individuals who are currently incarcerated due to the high-risk factors and shorter life expectancy associated with incarceration. Therefore, if you are currently serving a prison sentence, you will not be able to purchase a new life insurance policy until your release.

Once you are out of prison, you may have better chances of obtaining life insurance, although it will depend on the nature of your conviction and the insurance company's policies. Some companies may view your criminal record as a risk factor, resulting in higher premiums or limited coverage options. It is advisable to research and compare quotes from different insurers to find the best options available.

Can a death row inmate get life insurance?

It is highly unlikely that a death row inmate can get life insurance. Insurance companies will not write policies for high-risk individuals in prison or awaiting trial. However, if a death row inmate had an existing life insurance policy, their beneficiaries could still receive a payout. This depends on the specifics of the policy.

In general, insurers don't offer traditional life insurance policies to anyone who is currently incarcerated due to the high risks involved. Prisoners have restricted access to financial resources and, on average, shorter life expectancies than other applicant groups. Even if a felon is currently on probation or parole, they may be denied traditional coverage.

However, there are some alternative options for death row inmates seeking life insurance. These include:

• Guaranteed issue policies, which don't require a medical exam and offer limited coverage.
• Accidental Death & Dismemberment (AD&D) policies, which also don't require a medical exam but only cover accidental death or loss/loss of use of a limb.
• Group life insurance through an employer, although this is usually only available to the employee and not their spouse or dependents.

It's also important to note that if a death row inmate had a life insurance policy before their incarceration, it will remain active as long as the premiums continue to be paid.

What are the best companies for inmate life insurance?

While it is difficult to get life insurance for someone who is currently incarcerated, there are some companies that offer this service. The best companies for inmate life insurance include Erie, Allstate, and AIG, which offer comprehensive coverage tailored to this demographic's unique needs. These companies provide the most comprehensive and affordable coverage options for inmates, with plans starting at just $54 a month.

• Erie: Top Overall Pick. Erie offers flexible policy options that can be customized to individual needs and has a strong financial rating, securing an A+ from A.M. Best.
• Allstate: Best for Extensive Coverage. Allstate provides a wide range of coverage options and has a strong financial health rating of A+ from A.M. Best.
• AIG: Best for Extensive Options. AIG offers a variety of insurance options and has a strong financial standing with an A rating from A.M. Best.
• Liberty Mutual: Best for Financial Stability. Liberty Mutual achieves an A rating from A.M. Best and has a wide global presence.
• Nationwide: Best for Comprehensive Plans. Nationwide offers extensive coverage options and maintains an A+ rating from A.M. Best.
• New York Life: Best for Reliable Service. New York Life boasts the highest possible A++ rating from A.M. Best and is highly regarded for its dependable service.
• Principal National Life: Best for Customer Service. Principal National Life is praised for its exceptional customer service and has a strong financial rating of A+ from A.M. Best.
• Lincoln Life: Best for Competitive Rates. Lincoln Life offers some of the most competitive rates in the industry and holds an A rating from A.M. Best.
• Prudential: Best for Comprehensive Coverage. Prudential offers a wide coverage and has an A+ rating from A.M. Best.
• State Farm: Best for Reliable Claims. State Farm is known for its straightforward and reliable claims process and offers a variety of coverage options.

It is important to note that even if an inmate is eligible for life insurance, the rates may be higher due to the risk associated with their incarceration. Additionally, guaranteed issue life insurance policies, which do not require a medical exam, may be an option for inmates but typically have lower death benefits.

What are the factors influencing insurance eligibility?

Several factors influence insurance eligibility for incarcerated individuals or those with a criminal history.

Firstly, the nature of the crime plays a significant role. More severe crimes, such as violent offences like rape, murder, or manslaughter, often result in higher premiums or outright denial of coverage. The time elapsed since the offence also matters; insurers view longer periods without reoffending more favourably. Consequently, individuals with longer periods since their last conviction may have improved chances of securing life insurance.

Secondly, the frequency of offences is another critical factor. Multiple offences or a history of repeated crimes can make it challenging to obtain coverage or lead to increased premiums. Insurers perceive applicants with multiple offences as high-risk, and this perception influences their eligibility and the terms offered.

Thirdly, demonstrating positive changes and rehabilitation can increase your chances of securing life insurance. This includes maintaining a steady job, staying out of legal trouble, and showing no additional charges. Insurers may also consider an applicant's current health, lifestyle, and social activities when evaluating their eligibility.

Finally, the applicant's age and medical history can impact their eligibility and the type of policy offered. For example, some policies are only available to individuals over 50, while others may require a medical exam that could affect eligibility.

It is important to note that each insurance company has its own eligibility rules and policies, and it is worth researching and comparing quotes from different insurers to find the best options.

Frequently asked questions