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HomeBusinessFinanceChallenges of Life Insurance for Inmates

Challenges of Life Insurance for Inmates

Table of Contents

People who are convicted of a crime often don’t realize just how far-reaching the collateral consequences of the conviction can be. They may be so focused on the court-imposed consequences that they don’t think far beyond that sentence. 

One thing that they may need to think about is how they’re going to try to care for their loved ones while they’re incarcerated. It’s a difficult realization that they can’t do much. With the dangers that come with prison, they may wonder if they’ll be able to take care of their family if something happens while they’re in prison. 

What Happens if an Inmate Needs Life Insurance?

It’s usually best for a person to get a life insurance policy before they go to prison. Many insurers won’t write policies for individuals who are currently incarcerated. There are also many who won’t insure individuals who are currently facing criminal charges. Because of this, finding life insurance for inmates can be a challenge but you can’t give up just because of the challenge.

You can find companies that offer life insurance to individuals who are considered high risk. Some smaller companies will review the applications on a case-by-case basis, so you may be able to convince one of those to write a policy for you. This is much more likely if you aren’t facing violent criminal charges. 

Because the person who’s applying for life insurance may need a medical evaluation, they should try to obtain the policy prior to going to jail. Once they’re in prison, it can be difficult to get insured because the risk is too high and it’s nearly impossible to complete the process. For a person who’s in prison, it might be necessary to have someone apply for a policy for them. Some insurers allow this, but they would still need the inmate’s permission to get the policy. 

How Can They Get a Policy When They’re Released?

The challenge of finding life insurance after a release from prison is just as great as when the person is in prison. The risk isn’t as great as it is for a person who’s incarcerated, but the criminal conviction will still play a role in their life insurance options. 

There are a few ways that you might be able to find life insurance as a felon who’s out of prison. One of the most common options is to find an employer who will hire felons and who offers group life insurance. This might be the easiest and most cost-effective option that you can find under these circumstances. 

Another option is to get an accidental death and dismemberment policy. This policy won’t cover you if you die from natural causes, illness, or disease. It only provides benefits to the beneficiary if you die because of an accident. This is better than no insurance coverage if you aren’t able to obtain a traditional life insurance policy. 

Insurance policies for prison inmates are challenging to find, but they might not be impossible. Take the time to work with an agent who specializes in difficult cases.

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