Life Insurance After a Recent Bankruptcy

Securing a decent policy from top life insurance companies after a recent bankruptcy, can be difficult if you use the wrong company.

We’ve helped dozens of consumers who were previously declined or postponed life insurance secure life insurance after a recent bankruptcy by just doing our research.  And we’ll share that with you below.

Below is a list of 18 life insurance companies and how they view bankruptcy.  

If you’ve had a recent bankruptcy, run an instant quote on the right and compare the top rates to the companies listed below to see if you can qualify.

Keep in mind that an agent will have to write a cover letter explaining the bankruptcy and the details of it – so make sure you work with someone trustworthy.  Simply going off the guidelines below doesn’t guarantee you’ll get the rates.

If you’re currently going through a Chapter 7 bankruptcy and haven’t been declined coverage, there is one company not mentioned below that will write you.  They don’t require a medical exam either.  Please contact us for rates and the name of that company.

Chapter 7:  No coverage for a min of 2 yrs, after discharge for term products—for any forms of BK
Chapter 11,12 an 13: Will consider once PI is making regular debt payments and financial data supports total line of coverage
Multiple BK’s: PP until 60 months for term coverage, 24 mos for permanent coverage, after full discharge, regardless of BK type.

American National
All forms must be discharged.  Face amounts over $250K will definitely be reviewed for BK history.  Face amounts less than $250K “may not”.

Axa Equitable
Chapter 7: Must be discharged.
Chapter 11, 13: Guidelines say they will postpone any pending bankruptcy until it has been discharged, but Chapter 13 can be considered on a case by case basis with full details of financial situation.

Ch 7: Postpone until discharged
Ch 11, 13: Must have proof of court-ordered payment plan and payments must have been made for at least 2 years
Multiple BK: then individual consideration

Ch 7: Must be discharged.
Ch 11, 13: Individual consideration; payment plan must be established; will look closely at amount of payments and current income
Multiple BK history:  Regardless of type, must be discharged; and 2yr pp from discharge

John Hancock
Ch 7: Can consider after the bankruptcy is discharged (no particular waiting period) assuming stable employment and income, no lifestyle or medical/psych concerns
Ch 11, 13:  May be able to consider prior to discharge. Each risk would need individual consideration, but the expectation would be that the insured is well into his/her payment plan.
Multiple BK History: Individual consideration.

Lincoln Financial
Ch 7: Must be discharged…and currently employed and stable
Ch 13: Reduced amounts of insurance may be considered depending on need and financials available after filing
Multiple BK: all forms of BK need to be discharged and a 1 yr postpone from discharge date.

Met Life
All Chapters: the general rule on a single bankruptcy, Ch 7, 11 or 13, is one year out from discharge.  On the more simple bankruptcies, sometimes will consider sooner. Especially the Ch 7’s.
Multiple BK: 3 yr pp from discharge

Minnesota Life
All forms need to be reviewed on a case by case basis, but will not consider until fully discharged.

Mutual of Omaha
Ch 7: Must be discharged
Ch 11/13: Individual consideration subject to the following requirements:
– 6 mos from date of original petition, and accepted by the court
– Insured has current earned income
– No prior bankruptcy
– No current treatment or history of mood disorders, alcohol or substance abuse.
Multiple BK: All would need to be postponed until discharged

Ch 7: Must be discharged
Ch 11& 13: A Chapter 11 or 13 Bankruptcy that has a payment plan in place, amount that is reasonable, gainfully employed, financially justified, etc. can be given consideration even if the terms of the Chapter 11 or 13 are not fulfilled completely yet. If a case with a Chapter 13 that has not been discharged (payment plan paid off) is sent to reinsurance for facultative consideration, they may not participate.
Multiple BK’s: May require additional information and would be handled on an individual basis

North American
All forms of BK, need to be discharged…w/ no postpone period after…even if history of  multiple BK’s, still OK after discharge.

Ch 7: Postpone for 2 yrs after discharge (consideration possible) – admittedly not competitive.
Ch 11 & 13: Postpone for 6 mos past filing date, assuming pmt plan has been OK’d and on track making payments.
Multiple BK’s: Individual consideration.

All forms must be postponed until 12 mos after discharge

Ch 7: Postponed until discharged
Ch 11 & 13: Postponed until payment plan has been established and a majority of the debt has been repaid; should be close to being discharged, and showing good income and stable employment
Multiple BK’s: Postponed if within 2 yrs of last discharge and individual consideration

Ch 7: OK, once discharged
Ch 11 & 13: Needs to be fully discharged…simplified or fully underwritten


Ch 7: Must be discharged, and a 2 year postponement; although individual consideration can be made on case by case basis if within the 2 yrs
Ch 11 & 13: Guidelines are for needing discharge and 2 year pp, although individual consideration can be made on case by case basis, (once payment plan has been established for 3-6 mos)
Multiple BKs: all must be postponed 2 yrs

Ch 7: Will allow coverage, once discharged (no waiting period)
Ch 11: Postponed until the restructure plan receives court approval and financial statements demonstrates successful turn-around of the company
Ch 13: Can consider once a repayment plan has been established however amount considered may be limited depending of financial information.
Multiple BK’s: Subject to 2-5 year waiting period


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About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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