When it comes to obtaining life insurance, a criminal record can be a major obstacle. For most felons, they are unable to secure an affordable policy to provide financial protection against the unexpected. Here are some of the reasons why felons may have difficulty getting life insurance:
Types of Crimes
The type of crime a felon was convicted of can be a critical factor in determining their ability to obtain life insurance. Crimes such as murder, manslaughter, and violent offenses can be a major impediment to getting insurance coverage. Additionally, policy providers have the right to deny applicants if they have a history of fraud, drug trafficking, and any other form of dishonest behavior.
Length of Sentence
The length of the sentence also plays a major role in eligibility for life insurance coverage. Most insurers view longer sentences with more seriousness, and will be less likely to consider applicants who received lengthy jail sentences. Typically, insurers want to see that a felon has paid their debt to society, and has had an impeccable record for the last few years in order for them to qualify for insurance.
Degree of Risk
Life insurers take into account the degree of risk associated with providing coverage to a felon. Generally, policy providers have a higher aversion to risks, and if they deem that a felon poses too much risk to their bottom line, they may deny them coverage.
In summary, felons can have difficulty obtaining life insurance due to the types of crimes they have committed, the length of the sentences, and the perceived degree of risk. Life insurers can be cautious about providing coverage for felons, as they are viewed as high-risk clients. However, there are still some options for felons, such as whole life insurance policies and employer-sponsored life insurance plans, which may be more lenient in terms of eligibility.