One of the questions life insurance companies will ask about during the application process is whether you’ve had a criminal offence or charges before. Each company is different with how and what they ask, and can affect whether you will be approved or not. Acquiring life insurance with a criminal record or a history of criminal offences is possible and a much easier process than many expect. There are really great possibilities to attain fully underwritten policies, simplified issue policies, and if necessary, guaranteed issue policies. Don’t let you past deter you from securing your financial future for yourself or your loved ones.
Can I get life insurance with a criminal record?
A few years ago, I met with a client in what was at the time my office located in Burlington, Ontario to discuss his life insurance needs. We completed a full needs analysis, reviewed various life insurance terms and products including term, whole life and universal life insurance. We concluded that based on his needs and budget he would apply for a 10 year term product to protect himself and his young family. He was a smoker, hoping to quit smoking soon and wanted to do a shorter term for time being and re-apply at non-smoker rates in the future.
He was otherwise healthy, under 40 and with no other medical concerns. Based on my preliminary assessment I did not believe he would have any issue being qualified for life insurance or critical illness insurance something we had also discussed as a compliment to the life coverage.
We began the standard life insurance application with one of the carriers we had decided on, only to realize that several years ago when he was much younger he was involved in the wrong crowd and ended up being charged with a criminal offence. Due to this criminal record, this automatically disqualified him from the life insurance provider at the time.
This brings up the question: Can I get life insurance with a criminal record?
The answer is: Yes!
Generally speaking, life insurance companies will automatically decline anyone on probation, in jail or awaiting trial. Unfortunately they deem the risk too high and automatically decline coverage under these circumstances. Life insurance providers insure based on risk assessment and actuarial data gathered, which regrettably concludes that those with criminal records tend not to live as long as those without.
That being said, a life insurance applicant who, like my client, was several years removed from the time he was charged and no longer on probation would have several options available. While many insurance companies may charge a flat fee per every $1000 of coverage (life insurance rating), depending on how long ago the offence occurred it is possible that there would be no impact at all as it relates to being qualified.
How long will life insurance companies consider criminal records/offences?
Life insurance applications vary in the wording as it relates to criminal offences. They can ask for history from as little as 12 months ago to 5 or 10 years or an indefinite period. Furthermore, providers may have “simplified issue” policies which may not require any answers related to criminal history. Simplified issue life insurance is a faster issue product with less questions than a regular fully underwritten application. There can be added costs for simplified issue policies, although this is not always the case.
Below is wording taken from various life insurance companies in Canada within their applications as it relates to criminal offences:
Contact Protect Your Wealth to get life insurance even with a criminal record
Getting life insurance with a criminal record in Canada should not be a tough process, make sure you get the right policy for you and don’t let life insurance companies deter you from securing your finances. By working with our life insurance brokers, we will make sure you get the policy that fits your needs, and wants. We will find the best possible rates for your situation and we offer our services for completely free, from the first consultation all the way to the moment you sign your new policy.
Working with a life insurance specialist can help you find the best solution to fit your particular situation. We would be more than happy to provide further analysis for your family’s specific circumstances. If you are interested in learning more about the options available to you, check out our intuitive guide on the best life insurance companies in Canada.
Contact Protect Your Wealth today at 1-877-654-6119 to learn more about your options! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, such as Barrie, London, and Ottawa. We also provide our life insurance broker services in British Columbia (B.C.)