Seeing how every year nearly 1 million drivers are arrested under the influence, it’s not all that difficult to imagine why we here at IBUSA get so many folks calling us asking…
“If their previous DUI is going to prevent them from being able to qualify for a traditional term or whole life insurance policy?”
This is why…
We wanted to take a moment and discuss some of the most common questions we get from folks who have previously been charged or convicted of a DUI. And hopefully, shed some light on how this may affect their ability to qualify for a traditional life insurance policy.
Questions that will be addressed in this article will include:
- Can someone with a DUI qualify for life insurance?
- What factors will come into play when determining who will and won’t qualify for coverage?
- What kind of “rate” can one qualify for?
- What can someone do if they can’t qualify for life insurance right now?
- What can I do to improve my chances of qualifying for the “best” rate possible?
So, without further ado, let’s dive right in.
Can someone with a DUI qualify for life insurance?
Whether or not someone with a DUI can qualify for life insurance will depend on the specific insurance company and the circumstances of the DUI. Some insurance companies may be willing to offer coverage to individuals with a DUI, while others may decline to offer coverage or charge higher premiums.
Factors that may be taken into consideration when determining eligibility for life insurance with a DUI include:
- The severity of the DUI: Insurance companies may be more likely to offer coverage to individuals with a single, minor DUI compared to those with multiple DUIs or more serious offenses.
- The length of time since the DUI: Insurance companies may be more likely to offer coverage to individuals who have been sober for an extended period of time and can demonstrate that they have taken steps to address any substance abuse issues.
- Other factors: Insurance companies may also consider other factors, such as the individual’s age, health, and overall risk profile, when determining eligibility for life insurance with a DUI.
It’s a good idea to shop around and get quotes from several different insurance companies to see what options are available. It may also be helpful to work with a financial advisor or insurance broker who can help you find a policy that meets your needs.
What factors will come into play when determining qualification after a DUI?
Factors that will certainly come into play when determining whether or not you will be able to qualify for a traditional term or whole life insurance policy will include:
- How many DUI’s have you received?
- What was the date of your last DUI?
- How many DUI’s have you received in the past 10 years?
- Have any of your DUI’s been considered a “felony” DUI?
- Was anyone injured or harmed in any of your DUI’s?
- Was your impaired driving caused by alcohol or due to some type of drug (such as marijuana)?
- Do you have any other issues on your driving record?
- Have you been convicted of any other felonies or misdemeanors?
- Do you have a history of drug or alcohol abuse?
- Is your driver’s license valid today?
From there, we’ll generally have a pretty good idea of whether or not your DUI is going to keep you from being able to qualify for coverage.
For the record, we should make it clear that while many life insurance companies will have pretty set guidelines for how they like to underwrite applications from individuals who have been arrested for a DUI, how they apply those guidelines on a case by case basis can vary.
Which means that…
While it may be “technically” correct that someone may be able to “theoretically” qualify for coverage, until we have a commitment from an insurance company, we don’t like to make any “guarantees.”
This is because, as we said before, insurance companies get nervous about those who have been arrested for a DUI particularly if that DUI occurred rather recently.
For this reason…
What you’re likely going to find is that even the most lenient life insurance companies are still going to deny anyone applying for a traditional life insurance if their DUI occurred within the past 2 years.
And in situations…
Where someone may have two or more DUI’s this waiting period will need to be at least five years. This, of course, only applies if an applicant has no other “issues” relating to alcohol or substance abuse.
What kind of “rate” can one qualify for?
Let’s just take a moment and assume that someone is eligible for coverage. It’s been over two years since their one and only DUI and they are in perfect health.
In cases like these, with only two years since their DUI, chances are the “best” rate that they would be able to qualify for would be a Standard or normal rate.
It’s possible that someone like this may be able to qualify for a Standard Plus or better rate later on down the road, however for someone to be able to qualify for such a rate, they would most likely need to wait 5 or 10 years since their one and only DUI.
As for those…
With multiple DUI’s what you’re generally going to find is that you’re probably going to need to wait a minimum of 5 years before you will first be considered eligible for coverage.
And even then, we should warn you that it may still be difficult to qualify for a traditional term or whole life insurance coverage. This is why some folks who have received multiple DUI’s in the past may need to seek out an “alternative” product instead of a traditional term or whole life insurance policy.
What can someone do if they can’t qualify for life insurance right now?
Depending upon whether or not someone may be able to qualify for a traditional life insurance policy later on in his or her life, it may make sense to consider purchasing an “alternative” product such as an Accidental Death Policy or a Guaranteed Issue Life Insurance policy.
Accidental death policy defined:
An accidental death policy, also known as an accidental death and dismemberment (AD&D) insurance policy, is a type of insurance that provides financial coverage in the event of death or serious injury as a result of an accident. It is designed to provide financial protection to the policyholder’s loved ones in the event of an unexpected and accidental death.
Accidental death policies typically provide a one-time payment to the beneficiary in the event of the policyholder’s accidental death. The amount of the payment may be based on the policy’s face value, which is the amount of coverage specified in the policy.
Some accidental death policies may also provide additional benefits, such as coverage for serious injury or dismemberment resulting from an accident.
Accidental death policies can be a good option for people who want additional financial protection in the event of an unexpected and accidental death.
It’s important to carefully review the terms and conditions of an accidental death policy before purchasing to ensure that it meets your needs and fits your budget.
Guaranteed issue life insurance policy defined:
A guaranteed issue life insurance policy is a type of life insurance that is available to anyone, regardless of their health status or medical history. These policies do not require a medical exam or any information about the policyholder’s health, and are typically available to people who may not qualify for traditional life insurance due to pre-existing medical conditions or other factors.
Guaranteed issue life insurance policies generally have lower death benefits and higher premiums compared to traditional life insurance policies. The death benefit may be limited to a certain amount, such as $25,000 or $50,000, and may not be available for the first two or three years of the policy.
In addition, the premiums for these policies may be higher than those for traditional life insurance policies, due to the increased risk to the insurance company.
Guaranteed issue life insurance policies can be a good option for people who may not be able to qualify for traditional life insurance due to pre-existing medical conditions or other factors.
It’s important to carefully review the terms and conditions of a guaranteed issue life insurance policy before purchasing to ensure that it meets your needs and fits your budget.
Fortunately neither of these types of policies will deny someone for having been convicted of driving while under the influence.
“Which is a good thing!”
The only problem is that both of these “types” of products will have their own unique pros and cons associated with them. This is why it’s important that if you are considering purchasing either an accidental death policy or a guaranteed issue life insurance policy that you work with an agent who is open and honest about how these “types” of products work.
This brings us to the last topic that we wanted to take a moment and discuss, which is…
What can I do to improve my chances at qualifying for the “best” rate possible?
Probably the number one thing that you can do to ensure that you get the “best” possible rate out there is to first take your time and make sure that you “shop” your options.
This means that you should be sure that the insurance agent that you choose to work with not only has plenty of experience helping folks with previous DUI’s get insured, they also have access to dozens of different insurance companies so that they don’t have to rely on just one or two options.
Insurance companies aren’t only going to be interested in the fact that you’ve been convicted of a DUI.
They’re also going to be concerned about a wide variety of other potential issues, including whether or not you’ve also been diagnosed with any pre-existing medical conditions or whether or not your family has a history of developing certain medical conditions.
This is why…
It’s so important to work with a true life insurance professional, that will not only have the skills and expertise to help guide you towards the right company but also has the “access” to those companies as well! So, if you’re ready to see how we can help, just give us a call!