Life insurance is a key part of financial planning, but it can be confusing for someone with a felony conviction. Fortunately, having a criminal record doesn’t automatically bar you from coverage – it just means you may need to shop carefully and be prepared for stricter underwriting.
In this guide, we explain how a felony affects life insurance, what options exist, and practical tips to improve your chances. You’ll learn what to expect from insurers, which policies might be available, and how to plan to protect your family.
Key Takeaways
Felony convictions don’t entirely bar you from life insurance, but they do make approval more challenging.
Honesty is critical: Always disclose your criminal history on applications.
Type and timing matter: Minor or old felonies are easier to insure than violent/recent ones.
Explore all options: Group life, term life, final-expense (guaranteed-issue), and simplified policies may all be possibilities.
Plan for waiting periods: If possible, wait at least 1–2 years after release before applying to improve approval chances.
Seek expert help: An independent broker or agent can compare multiple insurers and find those willing to write a policy for a felon.
Can Felons Get Life Insurance?
Yes – many convicted felons can still get life insurance, but the options may be more limited and costly. Insurers view a felony as a high-risk factor, so you typically need to meet certain conditions:
Conviction type and timing – Nonviolent felonies (like larceny or fraud) are easier to ensure than violent or drug-trafficking crimes. Insurers often require years to pass after conviction or release. For example, some companies only offer full coverage if it’s been 10+ years since a conviction (or 20+ years for serious crimes), and at least 10 years off probation.
Current status – If you’re still incarcerated or on probation/parole, most insurers will not issue a new traditional policy. Incarcerated applicants are generally seen as uninsurable for term or whole life. Once you’re out of prison, expect to wait some time (often 1–2 years) after completing parole before applying.
Existing policies – If you already had life insurance before your felony, keep paying the premiums. Your coverage usually remains valid even if you later become a felon or go to prison. Beneficiaries will still receive the death benefit as long as the policy is active, regardless of the insured’s incarceration status. Group life insurance from an employer works similarly: if you leave your job (for any reason), you can often convert the group policy to a private one.
In practice, insurers examine each case individually. Work with an experienced agent or broker who knows which companies are more lenient toward applicants with felony records. A specialist can match you with insurers willing to consider your profile.
How Felony Records Affect Insurance Underwriting
Life insurance underwriters use data and actuarial tables to estimate risk. Statistically, people with felony records tend to have lower life expectancy (due to health issues and higher recidivism). For example, studies show that former inmates have higher rates of chronic illness and disease than the general population.
As a result, insurers will always ask about your criminal history on the application. They will verify your answers by checking public records and databases. Lying or omitting a conviction is very risky – if discovered (especially within the first two years after policy purchase), the insurer can void the policy and deny any claim. So full disclosure is critical.
Felonies vary in impact: nonviolent property crimes or one-time drug possession may not prevent coverage after a waiting period, whereas violent offenses or major felonies (rape, murder, trafficking) are often automatic decliners for traditional policies. If you have multiple felonies or one that involved violence, insurers will likely steer you toward guaranteed-issue or limited benefit plans (see options below).
In short, the more serious or recent the felony, the tougher it is to get affordable coverage. Even if approved, expect higher premiums. Insurers charge more to account for the perceived risk – a healthy non-felon might pay far less than a felon of the same age. But with patience and strategy, you can still protect your family’s financial future.
Coverage Options for Felons
If you’re a felon or former inmate, here are the main life insurance paths:
Employer or Group Life Insurance: If you have a job that offers life insurance as a benefit, this can be a great option. Group plans usually accept all employees regardless of health or criminal history. They’re often free or low-cost. Group coverage typically equals 1–2× your salary. The downside: if you leave that job, you might lose the policy or have a limited conversion period. Still, employer coverage can “fill the gap” until you qualify for an individual policy.
Traditional Term or Whole Life (Underwritten): Some insurers will offer ordinary term or whole life policies to felons who meet certain criteria. Generally, you’ll need to:
Wait until you’re off probation/parole for at least a year or more.
Possibly wait several years after your conviction (the longer the better).
Provide good documentation (proof of rehabilitation, stable job, sobriety, etc.).
Be aware: your premiums will be higher than average. But term life is still the most affordable “full coverage” option.
Guaranteed Issue Life Insurance: Also called final expense or burial insurance, this type of policy has no medical exam or health/criminal questions. Insurers guarantee acceptance for qualified applicants (usually age 45 or 50+). Coverage amounts are small (often $5,000–$25,000), just enough for funeral costs. Premiums are high relative to coverage, and there is commonly a waiting period (e.g., 2 years) before full benefits kick in. But guaranteed-issue is often the only option if no other insurer will approve you. For example, Mutual of Omaha and Colonial Penn are known for such plans.
Simplified Issue Life Insurance: A middle ground between term and guaranteed-issue. No exam is required, but you still fill out a health questionnaire. Some felons with minor convictions or older offenses may qualify. Simplified-issue can offer higher coverage (often up to six figures) with more reasonable rates than guaranteed plans. Approval is not guaranteed, but it’s easier than a fully underwritten policy. If you qualify, your felony may have less impact on premium costs.
Accidental Death (AD&D) Insurance: AD&D policies pay only if the insured dies in a covered accident. They don’t require a medical exam and are easier to get, even for high-risk individuals. The tradeoff: they do not pay if the death is from illness or a non-accident. AD&D can be useful as a supplement for funeral costs, but should not be your sole protection if you can get term life.
Final Expense / Burial Insurance: These plans (often guaranteed issue as above) are designed to cover end-of-life expenses. For inmates or felons over 50, insurers like Fidelity or Colonial Penn offer simplified or guaranteed final expense plans with fixed premiums. Policies might require being off probation for a certain time (e.g. 5 years) for eligibility.
Shopping tip: Rates and rules vary widely. Using an independent broker or quote platform can help you compare multiple insurers at once. Don’t assume one company’s denial means all will decline.
Insurance While Incarcerated or After Release
If someone is currently in prison, getting life insurance is extremely difficult. Most insurers will not issue a new policy to an incarcerated person due to the high risk and short life expectancy in that population. Instead, focus on what happens after release:
Existing Policies: If you had a life insurance policy before incarceration, keep paying the premiums. That coverage does not automatically lapse because you’re jailed. If the insured person dies, the insurer will pay the benefit to the named beneficiaries even if the insured was in prison.
Purchasing After Release: Once you leave prison and probation, you can apply for new policies. It’s wise to wait at least a year after final release or probation before applying – that improves your odds. In fact, some experts recommend aiming for about 18 months post-probation to get the best chance at approval. The longer you go without incident, the more insurers will view you as a normal risk.
Inmate Eligibility: After release, you might have even more options than someone still locked up. Insurers categorize “felons” and “former inmates” differently. A non-incarcerated former felon can sometimes qualify for standard term or whole life coverage, whereas an inmate typically cannot.
Group Plans: If you’re a dependent of someone who works (even if that dependent is incarcerated), check if they can be covered under the working person’s group life insurance. Some policies allow spouses or children to remain covered even if the insured party is later imprisoned.
State Programs: In a few places, there are inmate benefits programs that pay out a small death benefit to families when an inmate dies. This isn’t life insurance, but it can help with burial costs if no policy exists.
Improving Your Chances
Here are some practical steps felons can take when pursuing life insurance:
Be Honest and Prepared: Always answer application questions truthfully. If you hide a felony and it’s discovered later, any claim could be denied. Instead, prepare all documentation (court records, proof of sentence completion, parole discharge papers). Showing you’ve completed rehabilitation programs or education while incarcerated can also reassure underwriters that your risk has decreased.
Use a Broker or Specialist Agent: An agent experienced with high-risk cases knows which insurers are felon-friendly. They can steer you toward companies with lenient guidelines or specialty programs. This can save time and reduce frustration.
Consider Timing: Applying too soon can lead to automatic denial. If you’re just out of prison or probation, it may be better to wait until you can show a year of good behavior outside. During this waiting period, focus on rebuilding credit and employment (since steady work and finances improve your profile).
Keep Existing Coverage: If you had life insurance before a conviction, never cancel it. Premiums may still be affordable for those who maintained policies through their felony. That coverage becomes a valuable asset that can stay in force while you apply for others.
Explore Employer Benefits: If you or your spouse becomes employed with a benefits package, jump on the life insurance coverage immediately. Unlike private policies, these don’t discriminate based on felony status.
Shop Around: Life insurance markets change, and new products (especially final-expense plans) are introduced regularly. Periodically check if better options have appeared. If a traditional insurer outright denies you, look at guaranteed-issue or specialized final expense companies.
Common Questions & Answers
“Can I buy life insurance if I have a felony conviction?”
Yes, in most cases you can, though you’ll face more scrutiny. Your best chances are if the felony was non-violent and several years ago. Be prepared for higher rates and maybe limited coverage.“Do life insurers check criminal records?”
Absolutely. Insurers routinely run background checks through public records. They will know about your felony, so honesty is crucial.“What about me if I’m still in prison?”
Generally, you can’t get a new policy while incarcerated. The focus should be on maintaining any existing policy and planning to apply after release.“Can someone in jail receive an insurance payout?”
If they are the insured person (and they die in prison), the beneficiary gets the payout just as if they were free. If they are the beneficiary (the person receiving the money when someone else dies), they can still receive the benefit while incarcerated — beneficiary status isn’t negated by imprisonment.“Are there companies that specialize in covering felons ?”
Not specifically labeled, but some large insurers like Prudential, AIG (through American General), and Mutual of Omaha are known to offer more lenient underwriting for people with past felonies. Also, smaller final-expense companies often provide guaranteed-issue plans. Work with a knowledgeable agent to find the right match.
Life after a felony has its hurdles, but you can still protect your loved ones. Start by understanding your situation, gathering necessary documents, and reaching out to professionals who understand felon-friendly policies. With the right approach and persistence, you can secure life insurance coverage that provides peace of mind.