Why you can trust MarketWatch’s guidance: Our writers and editors strive to provide factual, unbiased reporting on the life insurance industry based on dozens of hours of research. We also consult with independent industry experts and use a comprehensive methodology to evaluate the best life insurance companies.
Can You Get Life Insurance After a DUI?
Age, gender and health history are important factors in getting life insurance quotes. However, companies also look at your criminal record and driving record, including DUI history and speeding tickets, as part of their underwriting process. A person with a history of drunk driving may have trouble getting standard rates or coverage, based on our research.
If you have a history of DUI convictions, companies may consider you a high-risk applicant prone to alcohol abuse and therefore may charge higher life insurance premiums. To gather more information about getting life insurance after a DUI, we reached out to Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I).
“It is possible to purchase life insurance after a DUI conviction, but it may be a little 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 how recently you got your DUI. Friedlander notes that many life insurers will deny your claim within a year of a DUI conviction. We recommend getting quotes from multiple insurance providers or consulting a life insurance rater to review your options.
How far back will life insurance companies check for DUIs?
Typically, life insurance companies look at your driving record for at least three to five years, according to Friedlander. But companies can still find older DUI convictions, and if you’ve had a DUI in the past five years, insurers will likely look back another 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 Record (MVR) through each state’s Department of Motor Vehicles data and by using the MIB Group, a corporation that provides insurance assistance to life insurance companies. Failure to disclose a DUI can lead to 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 specific situation will dictate what type of insurance is available to you. Some carriers may limit life insurance options for people who have had a DUI conviction in the past three to five years, Friedlander said.
“Insurability criteria include the severity of the DUI, how long ago you were convicted of DUI, and the applicant’s age, health and overall risk profile,” he added.
Accelerated insurance for term policies, such as no-exam life insurance, may offer the best option for some applicants with a DUI on their record, according to Friedlander. However, providers may require you to undergo a medical examination that includes a blood alcohol and drug test as part of the application process. Demonstrating a period of abstinence from alcohol or going through a treatment program may 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 driving or criminal record. However, guaranteed issue plans typically limit coverage to $25,000 and have higher rates than medically guaranteed plans.
How does a DUI affect life insurance costs?
If you received a DUI in the past year, you can expect a higher premium when you apply for life insurance if it is approved for coverage. According to Friedlander, rates can be up to 200 percent higher for those with DUI convictions compared to an applicant with a clean driving record. Keep in mind that term coverage is usually a more affordable life insurance option than whole life policies, which could become unaffordable for someone with multiple DUIs.
Each insurance company has specific insuring guidelines regarding health conditions and lifestyle risks such as cigarette smoking, skydiving and drunk driving arrests. During the underwriting process, companies place individual candidates into rating classifications based on overall risk. The highest rating classes are reserved for the healthiest, lowest-risk applicants, who typically receive lower rates. Typically, a DUI conviction results in a driver’s license suspension and a permanent conviction on their criminal record. A life insurance company will likely place those with a DUI in a higher risk class or be hesitant to offer coverage if the applicant is currently facing criminal charges, is on probation, or has a suspended license.
Life Insurance Cost Calculator
Check out our cost calculator below to compare life insurance quotes.
Frequently asked questions about life insurance after a critical condition
Having a DUI conviction on your driving record can affect your ability to obtain traditional term life insurance or permanent life insurance policies. When applying for coverage, the insurance company takes into account your age, health, lifestyle and other risk factors, such as your driving record. If you have a DUI in the past five years or two or more DUIs, you could face increased life insurance rates or an outright denial of coverage.
Based on our research, being arrested for drunk driving or DUI can affect your life insurance policy. Life insurance policies often include exclusions that can result in a death benefit being withheld in 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 benefit if the policyholder dies while committing an illegal act or if the policy has a disclaimer to exclude intoxication. That allows the carrier to deny 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 causes the death of the policyholder. In this case, the intoxication exclusion could result in the insurance company denying a claim if the policyholder’s blood alcohol level exceeded 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 how recently you’ve been arrested or convicted of the offense. If it’s been five or more years since your DUI, you’re more likely to get coverage offers and lower rates, based on 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 consulting with an insurance expert to explore the right options for your situation.
