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Can You Get Life Insurance After a DUI?
Age, gender and health history are important factors in getting life insurance quotes. However, companies also consider your criminal record and driving history, including DUI history and speeding tickets, as part of their underwriting process. Based on our research, a person with a history of drunk driving could have trouble getting standard rates or coverage.
If you have a history of DUI convictions, companies may consider you a high-risk applicant prone to alcohol abuse and therefore may charge you higher life insurance premiums. To learn more about how to get life insurance after a DUI, we reached out to Mark Friedlander, director of corporate communications at the Insurance Information Institute (Triple-I).
It is possible to purchase life insurance after having a DUI conviction, but it can be a bit more difficult to get coverage and the cost will be very expensive.
Friedlander said.
Whether you can get life insurance after a DUI depends on several factors, including when you last got your DUI. Friedlander notes that many life insurers will deny your application within a year of a DUI conviction. We recommend getting quotes from multiple insurance providers or looking at a life insurance quote to review your options.
How far will life insurance companies check for a DUI?
Life insurance companies typically look back at your driving history for at least three to five years, according to Friedlander. But companies can still discover older DUI convictions, and if you’ve had a DUI in the past five years, insurers will likely look back five years or more to see if you have multiple convictions or arrests. In some states, a DUI conviction stays on your record forever.
Insurance companies research your motor vehicle registration (MVR) through data from each state’s Department of Motor Vehicles and using the MIB Group, a corporation that provides underwriting assistance to insurance companies in life Failure to disclose a DUI can result in insurance fraud, which can immediately disqualify you during the life insurance application process and affect your future ability to obtain coverage.
What type of life insurance is best for someone with a DUI?
As a person with a DUI, your particular situation will determine what type of insurance is available to you. Some carriers may restrict life insurance options for people who have had a DUI conviction in the past three to five years, Friedlander said.
Underwriting criteria include the severity of the DUI, how long ago you were convicted of the DUI, and the candidate’s age, health and overall risk profile, he added.
According to Friedlander, accelerated underwriting of term policies, such as no-exam life insurance, may offer the best option for some candidates with a DUI on their record. However, providers may want you to undergo a medical exam that includes a blood test for alcohol and drugs as part of the application process. Showing a period of abstinence from alcohol or undergoing a treatment program might look favorable to insurers.
Guaranteed issue life insurance is another potential option if you are within the eligible age range. These plans typically don’t ask medical or lifestyle questions or check your criminal or driving history. However, guaranteed issue plans typically limit coverage to $25,000 and have higher rates than medically underwritten plans.
How does a DUI affect the cost of life insurance?
If you’ve gotten a DUI in the past year, you can expect a higher premium when you apply for life insurance if coverage is approved. According to Friedlander, rates could be up to 200% higher for those with DUI convictions compared to an applicant with a clean driving record. Keep in mind that term coverage is generally a more affordable life insurance option than whole life policies, which could become unaffordable for someone with multiple DUIs.
Each insurance company has specific underwriting guidelines regarding health conditions and lifestyle risks, such as cigarette smoking, skydiving, and DUI arrests. During the underwriting process, companies place individual applicants into rating rankings based on overall risk. The higher rating classes are reserved for the healthiest, lowest-risk applicants who generally receive lower rates. A DUI conviction usually results in a driver’s license suspension and a permanent conviction on your criminal record. A life insurance company is likely to place people with a DUI in a higher risk class or hesitate to offer coverage if an applicant is currently facing criminal charges, is on probation, or has a license suspended
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Frequently asked questions about life insurance after a DUI
Having a DUI arrest on your driving record can affect your ability to get traditional term life insurance or permanent life insurance policies. When you apply for coverage, an insurance company takes into account your age, health, lifestyle and other risk factors, such as your driving history. If you have a DUI within the past five years, or two or more DUIs, you may face increased life insurance rates or a complete denial of coverage.
According to our research, getting arrested for drunk driving or DUI could affect your life insurance policy. Life insurance policies often include exclusions that may result in withholding of a death benefit payment under certain circumstances. If you die while committing an illegal act, such as drunk driving, your insurer may refuse to pay the claim.
A company can deny a life insurance claim if the policyholder dies while committing an illegal act or if the policy has a disclaimer for an intoxication exclusion. This allows the carrier to deny payment of death benefits if the policyholder dies as a result of a DUI or other illegal act, such as committing a crime, Friedlander said. An example of a wrongful act includes a drunk driving accident that results in the death of the policyholders. In this case, an intoxication exclusion could result in the insurance company denying a claim if the insured’s blood alcohol level was over the legal limit at the time of death.
If you have a DUI or driving while intoxicated (DWI) conviction, providers will look at several factors before offering life insurance coverage, including a recent arrest or conviction for the act. If it’s been five or more years since your DUI, you’re more likely to receive lower rates and coverage offers, according to our research. If you have had two or more DUI offenses within 10 years, you may have trouble getting coverage or face significantly higher rates. We recommend that you consult with an insurance professional to research the right options for your situation.
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