Applying for Life Insurance with a DUI Charge

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6 minute read

Applying for Life Insurance with a DUI Charge

Applying for Life Insurance with a DUI Charge

Talk to one of our experienced advisors today!

6 Minute read

How to get life insurance with a DUI in Canada

A common non-medical risk factor life insurance companies will look at is your driving history, which includes any DUI (Driving Under Influence) charges. When applying for life insurance with a DUI charge, companies will consider your motor vehicle driving history to determine your ratings for premiums, and in some cases, may even decline your application entirely. That being said, you can still get life insurance with a DUI on your driving record, but it can cost quite a bit more if you choose the wrong carrier.

What is DUI (Driving under the influence) in Canada?

In Canada, a DUI is considered operating a motor vehicle while under the influence of drugs or alcohol. Although you may think that DUI charges only affect your auto insurance, it also plays a part in your life insurance applications. This is because life insurance companies assess the total risk associated with insuring you. If you have a history of reckless driving, it is more of a risk for insurance companies to insure you, thus making it harder for insurers to approve your application at a standard rate. 

As difficult as it may seem to get life insurance after getting a DUI charge, it’s not impossible to get an affordable policy. Working with a life insurance advisor or expert can help you navigate through the different policies that you can choose from, depending on the time since your DUI charge.

Can I get life insurance if I have a prior DUI charge or conviction

How does my driving history and DUI affect insurance?

A DUI will affect your life insurance application’s approval status, and how you will be rated for your insurance premiums. The more recent your DUI charge, the less likely you’ll be able to be approved or the more you will have to pay for your premiums. Most insurers will require a minimum of 6 months after a DUI charge, but some will require longer periods of time before you can apply. The number of DUIs you have received over a number of years is also taken into account for your ratings for premiums. Typically, the more DUIs you have, the higher your rating and premium costs. 

Another thing to note is that insurers will not consider your application if your license is currently suspended.

Your driving record will also be taken into account during the life insurance application process. Underwriters will require a Motor Vehicle Report or questionnaire, which will ask about driving infractions (traffic offenses), DUI charges, and license suspensions.

You can apply for traditional life insurance after a DUI can take 6 months to 2 years

Driving Infractions 

Driving infractions (also known as traffic offenses) are considered when reviewing your driving record and motor vehicle report. These are non-criminal traffic offenses, but are prohibited by law. These can be anything from speeding, running a red light, failing to stop or yield, or seatbelt violations.

Some life insurers will consider the number and type of driving infractions in the past few years and rate you higher if you surpass a certain amount. Both the years and the number of infractions considered will vary by insurance company, meaning if you have more infractions, looking for a company that is more lenient towards driving offenses will be ideal for you.

How long will a DUI affect my insurance?

If you were charged with a DUI within the past 1-2 years, it’s likely you will be denied coverage or have a higher premium cost because there hasn’t been enough time since the charge for the insurance company to confidently assess your behaviour. However, some insurers will allow for shorter periods of time – it depends on the company and where you look. Speaking with one of our life insurance experts can help you find the right company for the period of time since your own DUI charge.

In general, an insurance company will not consider DUI’s from 3-5 years ago. This means that after 3-5 years, you’ll be more likely to receive standard ratings for premiums and be approved.

How long after DUI can you get life insurance?

In Canada, you can apply for traditional life insurance after a DUI from anywhere from 6 months to 2 years, depending on the insurer. If you’re looking for a faster and easier approval for life insurance, guaranteed issue or simplified issue may be for you. These insurance options ask less questions with their applications and are generally more lenient, especially guaranteed issue policies.

Note that these will still look at your driving record and history, but they will treat it differently from traditional fully underwritten policies, and will be more expensive than your regular policies. If you’re looking for fast coverage but aren’t sure which to start with, speaking with one of our advisors can help you find the right coverage for your circumstances.

How long is insurance expensive after DUI?

In Canada, you can expect standard ratings and premiums if you apply for life insurance 5 years after a DUI charge, or sometimes sooner, depending on the insurer. If you get a DUI during your life insurance policy (you are already insured), your current rates will not change unless you apply for another policy.

Does drunk driving void life insurance?

If you already have a life insurance policy in place, drunk driving or driving under influence will not void your life insurance policy. 

Does life insurance pay out for drunk driving deaths?

As part of the contract, life insurance policies cover almost all deaths due to an illness, accident, or natural causes. Motor vehicle accident related deaths are classified under accidental death, and drunk driving will typically fall under this. If the drunk driving death is deemed as a suicide, life insurance companies will still pay your beneficiary, as long as the period covered by the suicide clause has elapsed (which is typically 2 years).

Frequently Asked Questions (FAQs) about DUIs and life insurance

There is a high chance that your life insurance provider will not give out a life insurance pay out to your beneficiaries or your estate. The reason being that this can be considered a self-inflicted death and most life insurance companies will not cover self-inflicted deaths. This is due to the fact that there are many forms of life insurance fraud done in this manner. 

Not necessarily, if you want a fully underwritten life insurance policy then there is a high possibility that your life insurance rates can be the standard price. For those who have one DUI, there is a chance that you might not get an increased rate at all and if it is increased, it would be a minor increase. If you have more than two DUI there is a high chance that you will get a dramatically increased rate or you might get declined. Luckily if it has been a number of years since your DUI incident you might be given a standard rate, this varies from 2-5 years after the event. The price rating also varies with disability life insurance and critical illness insurance.

Yes you can, though it might seem daunting to have a DUI on your record, it is completely possible to get a life insurance policy at an affordable rate. There are also no medical life insurance policies that can cover you with no questions asked.

The price for life insurance if you have 1 DUI can be a standard price or slightly increased to 50% more than a standard price depending on the life insurance company. Whereas if you have more than 1 DUI the rating can go up significantly, or be declined. For example, if you have more than one DUI your rating can go up by $2.50 per thousand dollars worth of coverage, this would lead to an increase in your monthly premium. 

Yes, you should definitely tell your life insurance company about your DUI or any criminal convictions you have had. Although they might not ask about your criminal record or about DUI’s specifically you should disclose that information to them. This can lead to severe issues down the road as it can lead to your life insurance policy becoming void, it can lead to insurance fraud and ultimately affect both you and your beneficiaries. 

Finding the best life insurance after a DUI

As difficult as it may seem, it’s not impossible to get affordable life insurance after getting a DUI charge. Working with a life insurance advisor or expert can help you navigate through and compare the different policies that you can choose from, depending on the time since your DUI charge.

At Protect Your Wealth, we would be more than happy to provide further analysis for your specific circumstances. We’ve been providing expert life insurance solutions since 2007, including term life insurance and no medical life insurance. Or, if you are interested in learning more about the options available to you, check out our 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, Oshawa, and Guelph.

Talk to an advisor today to find the life insurance coverage suited for you.

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