Dui Life Insurance: How It Affects Your Rates
It wasn’t probably until you needed to complete a life insurance application that it occurred to you that having a driving while intoxicated (DWI) or more commonly known as driving under the influence (DUI) record may prevent you from qualifying for life insurance. A single DWI or DUI on your record can carry many consequences regarding your life, ranging from your driver’s license to your overall health. So, you may wonder, “Will I still be able to get life insurance with a DUI?” Most people realize that getting an affordable policy may be out of their reach when it’s already too late.
In this post, we’ll help you understand what insurance companies want to see to underwrite your life insurance policy while you try to receive coverage after a DUI or DWI.
Driving Under the Influence
Driving under the influence (DUI) refers to the illegal act of operating motor vehicles while being undermined by alcohol or drugs. DUI charges denote a lesser degree of impairment than a DWI. Both are serious offenses. But though they may seem identical, some states classify them as individual crimes. But whether it’s a DUI or DWI, it’s a transgression continuing to plague the world.
Every day in the U.S. alone, more than 30 individuals die from accidents involving drunk driving. That means one person dies every 51 minutes. Plus, according to the CDC, the annual cost of alcohol-related crashes is around $59 billion.
More Risk Results in Higher Premiums
Life insurance companies, such as Prudential, often look at risks when determining what applicants pay for their policies. The higher risk you are, the more expensive your premiums are. One of the risks that these providers look at is the driving history. Lesser traffic violations such as running a red light or going over the speed limit aren’t considered serious. But, a DUI on a driving record is a severe case, making you high-risk. Therefore, having a DUI can affect your life insurance rates. Plus, not only will you pay more for premiums when you have DUI, but you may also not get the policy at all.
How Much is Life Insurance With a DUI?
The amount of your life insurance policy premiums depends on multiple factors. These include when you have received your last DUI or DWI, how many DUIs you have, and whether you can show you’re receiving proper treatment by getting a medical exam. If a life insurance agent or company does offer you coverage, expect a table rating. That means you’ll pay more based don’t the risk factors you have. Insurance providers will consider your medical history and the factors mentioned earlier when assigning this table rating. The higher your rating is, the higher the premium rate will be.
The top health class ratings for individuals with a DUI conviction available are select preferred or preferred. But, you won’t qualify for health class ratings within the first 5 years of your DUI. Those with one DUI or recent DUI case may receive a standard rating, but only if you have had one offense so far. Overall, your rating will only worsen the more offenses and health issues you have.
Keep in mind that most life insurance companies will increase your premiums if you’ve been arrested for a DUI within the past 3 to 5 years. But, it’s different for each firm, so don’t forget to compare them.
Why Do Life Insurance Companies Care So Much About DUIs?
Any insurance company cares about DUI cases seriously because being on the road while intoxicated can lead to death, and everyone knows that insurers hate risks. After all, if you pose a higher risk, they’ll need to pay more. Plus, DUIs may result in economic and household problems, leading to more health concerns, including excess stress, anxiety, and depression.
But a DUI conviction isn’t the only thing that’ll get you rated up or declined. Other violations like reckless motor vehicle handling and suspended licenses in the last 3 to 5 years will ruin your chances to qualify for life insurance. However, even if a life insurance company gives you a chance to get a policy, it can be expensive. A first-time offense can cost you anywhere between $10,000 to $25,000. Your life insurance rates also depend on where you live. For instance, if you live in a state where alcohol abuse and drunk driving are common, penalty rates for a DUI could be even higher.
Never hide your driving record on the life insurance application or from the agent when applying. That’s because the insurance company will run an MVR (motor vehicle record) report, helping them find more about your history. So, avoid losing your chance of qualifying for life insurance and be straightforward.
What Life Insurance Option Caters to DUI Offenders?
Most DUI offenders aim to get term life insurance since it provides immediate insurance coverage. However, if you can’t qualify for term life insurance, but need some finances, consider the no-exam or guaranteed-issue life insurance. This policy requires fast applications with no underwriters, meaning approvals are almost instant, and almost everyone gets approved.
Although guaranteed issue life insurance is an excellent last resort option for most individuals with a DUI conviction, it’s not for everyone as it is high-risk. It has high premiums with low benefits. Typically, individuals with severe health issues and can’t find other life insurance policies settle for this plan. But, it allows policyholders to cover some expenses that may leave a burden on their family should they pass away. Overall, if you have a DUI, find help to overcome your alcohol issues and avoid drinking and driving.
Will a Non-medical Exam Policy Help With DUI?
A non-medical exam policy won’t hide your DUI/DWI record. It won’t help you increase your chances of getting life insurance, but it’ll lessen your hassle by removing the need for a medical exam. After all, the non-medical exam policy is for those who don’t want to undergo a medical exam. But, this will cost more than traditional life insurance.
How Long Will a DUI or DWI Affect My Insurance?
If you had a recent DUI conviction within the last 12 months, you can’t get life insurance coverage for 12 months regardless of the insurance company. Meanwhile, if you had a DUI or DWI charge two to 5 years ago, some insurance companies may offer standard plus rating coverage, provided you have no other health issues. After 3 years, you can upgrade for better insurance rates. Finally, after 5 years, you can apply for the best ratings across different insurance companies. You can stick with your preferred coverage to get the most out of it.
Additionally, you may wonder, how far back will an insurance company check for a DUI case? Insurers and huge life insurance companies like Prudential have access to your driving history, so they wouldn’t see it if your conviction was expunged. On the other hand, if you have DUI on your record, it can go back as far as 5 years. It’s best to compare different companies to see which one has better options for DUI offenders.
How To Get Coverage If I Had a DUI?
The best way to life insurance after a DUI is to not apply on your own. That’s because any time you apply and get rejected for life insurance coverage, this will increase the odds of getting rejected again. After all, insurance companies have specific underwriting guidelines. For instance, some insurers require applicants to undergo a medical exam to determine their risk levels, while others don’t. Each client will have different health risks, and only experienced brokers can match you with the right insurer. So, though you can compare life insurance quotes yourself, always ask for an agent’s help.
Plus, getting a DUI or DWI coverage can be challenging since they aren’t the only things contributing to higher rates. Other factors affecting your life insurance rates are your hobbies, health history, and overall lifestyle. But the good news is that if you do qualify for life insurance with a DUI, an agent can tell you the rates, coverage, and preferred terms. You can compare different quotes from various life insurance companies to see which one would offer the best coverage for people with a DUI record.
What Happens When a Policyholder Dies Due to DUI?
If someone dies from a drunk driving case, life insurance benefit claims will be tricky. That’s because if policyholders get killed in a DUI, DWI case, most insurance companies will deny payment on the claim. Most insurers will treat DUI-related deaths as self-inflicted, denying claims. But, in some instances, beneficiaries may be able to fight the insurance company, but this can be expensive and positive results aren’t always assured.
Plus, life insurance policies don’t extend their coverage to families. However, in an event where the person is the victim of a DUI or DWI accident, life insurance should pay on the claim. You wouldn’t want to leave your loved ones with debt, so make sure to compare different life insurance quotes and policies from various companies to see what suits your situation the best.
Do I Need to Tell the Insurance Agent I Had a DUI?
If you get a DUI, DWI conviction after securing a life insurance policy, you still need to tell your agent or company. You don’t need to worry about missing out on the affordable life insurance policy you got. That’s because, in most cases, getting a DUI, DWI after locking in your policy terms and rates won’t cause any dramatic changes.
But, if you hide information regarding DUIs from your life insurance company or agent, it can cause you more problems. That’s because if the insurer has evidence of any alcohol abuse or alcohol issues, they can deny your claim. So, to ensure you avoid problems in the future, tell your life insurance agent about any DUI or DWI convictions you have.
What Do Underwriters Ask?
When asked, you need to be honest about your DUI conviction with your underwriters and your application. That’s because any lies regarding the DUI on your record can be considered fraud. With this, the company can rescind the policy. That means they will refuse payment to your beneficiaries. Here are some of the most common questions underwriters ask:
- What is your current age?
- Do you have other health conditions?
- How long ago was your last medical exam?
- Do you have a recent DUI conviction?
- How many DUIs have you had in the past 5 years?
- What’s the time of the last occurrence?
- Do you have a history of alcohol abuse?
- Have you tried mending your alcohol issues?
- What are the steps you’ve taken toward alcohol abuse recovery?
- Have you ever had your driver’s license suspended?
- Do you have any criminal records?
Different insurance companies will have varying questions, but these are the most common. But, regardless of the insurer, be honest when applying to increase your chances of getting insurance with a DUI.
When Would I Get Declined?
You can get declined when having DUI, DWI on your driving record for many reasons, but underwriting guidelines for life insurance with DUIs differ from one company to another. But, generally, most providers want to see that the DUI case happened at least 2 years ago. However, some companies look back as far as 5 years ago.
If you’re purchasing a standard life insurance plan from Prudential or any other big company, they usually require an exam. These companies will require you to have a medical exam done, including blood work, to reveal any signs of alcohol abuse. If you come up with abnormalities from the exam, they may require extra tests. If the results come back positive, it could be a sign of liver damage due to alcohol abuse, and there’s a good chance your application will be rejected.
Additionally, if you have two DUIs, you may face 12 months to 5 years of postponement. Finally, if you have over three DUIs, you won’t qualify for a traditional life insurance policy.
How to Qualify for a Better Rate With a DUI
To qualify for the best rates while having a DUI conviction, your best bet is to repair your record. You can do this by hiring an agent to help and keep records of your efforts to the company. Another thing you can do is lead a healthier lifestyle and drive safely on the road. But the best thing you can do is make smarter decisions and never drink and drive in the first place. Keep your driver’s license intact, get better life insurance options, and save lives by driving responsibly.
The Bottom Line: Getting Life Insurance with a DUI
Drunk driving won’t prevent you from getting life insurance. But you’ll need to go through a more strenuous process to prove you’re not a repeat offender, don’t have health issues related to alcohol, and are eligible for a life insurance policy. Plus, if you have a DUI or DWI on your record, you’ll be having a more challenging time finding quality insurance. It’s best to work with an experienced insurance agent to help you apply for a plan. But you could avoid the hassles by being a responsible driver in the first place. So, never drink and drive to get better life insurance rates from the get-go.
