Last Updated: May 2020
If you have a DUI on your record and have applied for life insurance, you know how hard it is to obtain affordable life insurance coverage. You’ve likely been declined or given a very high premium.
Many consumers who come to us for life insurance with a DUI on their record are frustrated with the process, but it doesn’t have to be this way if you use the right life insurance company.
High-risk life insurance can often be difficult to navigate on your own.
No worries, at Rootfin, DUI’s are something we handle with frequency and this brief article will help you understand the process:
- Life Insurance After DUI’s
- What to Expect When Applying for Life Insurance with a DUI
- Don’t Shy Away From Life Insurance Coverage Due To A DUI
Life Insurance After DUI’s
Here’s the deal. Life insurance carriers use re-insurers who dictate their underwriting guidelines for DUI’s.
With that said, every life insurer abides by these required underwriting guidelines for DUI’s, except for 1 carrier (Prudential). Prudential is hands down the most competitive for anyone with a DUI history.
Life insurance companies are always concerned with anything that raises your overall mortality risk (chance of death) and DUI’s certainly indicate that you may have had a lapse in judgment at one time or perhaps even indicate deeper complications such as alcohol or drug abuse.
That is why it is imperative to understand the process, be completely upfront with your life insurance agent, and have your expectations in check when you start the application process for life insurance after a DUI.
What to Expect When Applying for Life Insurance with a DUI
Before we get into showing you what to expect when applying for life insurance with a DUI, you must know 2 life insurance terms that are foreign to most people applying for life insurance:
- Flat Extra: This flat fee per every $1,000 of coverage. For example, a $3 flat extra will be an extra $300 added to a $100,000 policy. The important thing to know here is that flat extras for DUI’s are PERMANENT. You’ll have to re-apply to get those removed in the future.
- Postpone: A Postpone means the life insurance company can’t consider your risk until you’ve surpassed their specified time limit. For example, a postpone for 12 months from the date of DUI means you have to wait to apply until that time has passed.
Here’s what you can expect:
(Quick note: contact us and we’ll provide you with the lowest life insurance rates based on your DUI details.)
- Within the last 12 months
- Age 25 and under will postpone for at least 1 year, then add a flat extra of $5-$7.50 per thousand (depending on age, date of DUI & details)
- Age 25+ $3.50-$7.50 flat extra.
- Prudential will give a Table B rating which is much less expensive than working with flat extras.
- Over 12 months ago
- Most carriers will have a flat extra of $2.50 to $5
- Prudential will give Standard Plus rating which again is the cheapest you can find on the market.
- Over 3 years ago most carriers will give you a Standard health class.
- Most carriers will postpone 2-3 years from the date of the last DUI if over age 25. After 3 years from the date of the last DUI, a flat extra of $2+ will be added (depending on carrier, age and complete details)
- Prudential will be Table 5 (if last DUI within the past 5 years)
- Prudential will be Table 2 (if last DUI more than 5 years ago, but less than 10)
- Prudential will offer no additional rating if the last DUI was more than 10 years ago.
More than 2 DUI’s is a decline everywhere. In this case, we can help you secure a graded death benefit policy. As you can see, Prudential is the best option in every DUI case.
On top of the information above, if you have 2 or more of the following factors, underwriters will consider increasing your premiums even more than what was stated above.
- Alcohol misuse or drug abuse
- Individuals under age 30 or over age 70
- Currently participating in avocations (race car driving, skydiving, scuba diving, etc)
- Yearly driving violations or habitual offenders
- Additional non-moving violations
- Motorcycle use
- Past criminal history
- Rated medical impairments
Lastly, keep in mind this information:
- The life insurance company will pull your MVR report. Make sure you’re completely upfront with us regarding everything on your record. Including speeding tickets.
- When you take the medical exam to qualify for life insurance, they will take a careful look at your liver enzymes and possibly your alcohol markers. Any elevation will either increase your rates or decline your application.
- You’ll likely be required to complete a questionnaire about your driving history. Usually, your agent will go over this with you over the phone.
We know this is a lot of information. Our suggestion is to let us do the work and we’ll provide you with the best life insurance rates based on your unique DUI details.
If you want to find a plan you can afford as an applicant with a DUI, you need to be an insurance expert. Luckily, we can save you the months of studying and research.
Don’t Shy Away From Life Insurance Coverage Due To A DUI
Sometimes a DUI is nothing more than a one-time mistake and obtaining life insurance after a DUI should not be a task that you dread or fear.
It is 100% possible to be approved for coverage after a DUI if you take the time to compare rates and find the right agency to assist you.
Give Rootfin a try if you are currently struggling to secure coverage.
Along with working with many different top carriers, we also offer company reviews on each one of our references, such as AIG Direct.