Life Insurance After a DUI or DWI: 6 Important Questions Answered
The hard truth: Expect to pay more for your life insurance if you have a DUI on your driving record. Some of you reading this may have already been declined altogether or been told by another agent that you can’t get coverage.
The bright side: All hope is not lost. If you know where to apply and how to do it, you CAN still get life insurance after a DUI. You can also keep the premiums as low as possible.
In this article, we’ll explain how and answer these 6 important questions:
- Why do life insurance companies care about a DUI?
- What questions will the insurance company ask?
- What effect will a very recent DUI have on my premiums?
- How much will I pay for life insurance after a DUI?
- What about no medical exam policies with a DUI?
- What insurance companies are best for people that have a DUI?
Why Do Life Insurance Companies Care About a DUI?
Insurance companies are in the business of assessing risk on each person’s life. They will use data from millions of other people to answer the following 2 questions:
How likely are you to die? and How soon will you die?
It may not seem fair. But that is how it’s done in order to charge everyone fair and reasonable premiums for their specific situation. When you have a DUI or DWI on your record, it raises concern for the underwriters about 4 things:
- You could die in an alcohol-related crash. The National Highway Traffic Safety Administration says that a driver with a DUI/DWI on their record is 40% more likely to get into a future fatal crash where alcohol is involved.
- You are more likely to repeat. I know, not fair. This may have been a one-time mistake for you but over 30% of people with 1 DUI will get at least 1 more conviction.
- Could be a sign of other alcohol problems. Those pesky stats again say there is some relationship. Alcoholism brings another set of health issues that will need to be considered.
- It means you are a risk taker. Driving while under the influence could mean you are more likely to engage in future dangerous hobbies.
Because of these factors, the underwriters are going to charge you higher premiums. Stick with us and we’ll help you keep them down.
What Questions Will the Insurance Company Ask?
In addition to the regular questions about your health history and lifestyle, prepare to be asked about the following:
- How many convictions do you have for a DUI or DWI?
- When was the most recent conviction? (very important, more later)
- Has your driver’s license ever been suspended or revoked? When?
- Any other moving violations in your driving record?
- Other things on criminal record?
- Do you currently drink? if so, how many drinks per week?
- Is there a history of alcohol abuse? If so, what treatment did you receive?
Be completely upfront about everything with your agent. Only then can we truly help you find the best coverage at the lowest possible rates.
Aside from the questions about the DUI and alcohol, expect the following during the underwriting process:
- Your Motor Vehicles Report (MVR) will be pulled. There are many reasons not to lie on a life insurance application but this is a darn good one. Your DUI/DWI will be verified as well as speeding tickets and moving violations.
- Signs of alcohol abuse in you medical exam. Special attention will be paid to your liver enzyme test as well as alcohol markers like AST, ALT, GGT, MCV, and CDT.
What Effect Will a Very Recent DUI or DWI Have on My Premiums?
Put simply, it matters a lot.
With anything in life insurance, the further in the past, the less of an effect it has on your rates. A DUI is certainly no different. If the DUI is recent, enough time hasn’t passed yet for the insurer to get a gauge on whether this was a one-time mistake.
On the other hand, if it was 12 years ago with no other alcohol-related issues since then, it’s a complete non-factor.
Be extremely careful where you apply if you have a conviction for driving under the influence in the last 12 months. Many insurers will flat out deny you or “postpone”. This is essentially a denial for now since it means they won’t even consider you until more time has passed.
Good news! There is one carrier at this time that will still consider a DUI under 12 months. Be sure to check with your us first before running to Prudential though. Rates are fixed by law so you save nothing going direct. Why not have an advocate on your side?
How Much Will I Pay for Life Insurance After a DUI?
Life insurance underwriting puts everyone into a health classification that determines the rate you pay.
While a DUI is not technically a health issue, we have already discussed the reasons above why the presence of it in your record adds risk to the profile.
The below charts show the health classes you can expect to end up in. These are split into 1 or 2 DUI’s on your record.
If you have 3+ DUI, unfortunately, your only option is a simplified or guaranteed issue policy for a lower dollar amount. If this you, drop us a line to discuss the best option.
Note: The below classifications assume excellent health otherwise and only illustrate the effect a DUI has on health class. Other medical conditions and lifestyle risks will need to be taken into account separately to determine the best course of action for securing the most affordable rates.
1 DUI on record
Sample rates for a 28-year-old male on a 20-year term
| Time Since DUI Conviction | Health Class | $250K | $500K | $750K |
|---|---|---|---|---|
| Less than 12 months | Table 2 | $45.56 per month | $83.47 per month | $121.37 per month |
| 1-5 years | Standard Plus | $27.68 per month | $47.70 per month | $67.72 per month |
| 5+ years | Preferred Plus | $20.02 per month | $32.40 per month | $44.78 per month |
1 DUI on record
Sample rates for a 35-year-old female on a 20-year term
| Time Since DUI Conviction | Health Class | $250K | $500K | $750K |
|---|---|---|---|---|
| Less than 12 months | Table 2 | $44.51 per month | $81.36 per month | $118.21 per month |
| 1-5 years | Standard Plus | $25.43 per month | $43.20 per month | $60.97 per month |
| 5+ years | Preferred Plus | $19.35 per month | $31.05 per month | $42.75 per month |
2 DUI on record
Sample rates for a 33-year-old male on a 20-year term
| Time since most recent DUI conviction | Health Class | $250K | $500K | $750K |
|---|---|---|---|---|
| Less than 5 years | Table 5 | $87.52 per month | $167.38 per month | $247.25 per month |
| 5-10 years | Table 2 | $55.39 per month | $103.12 per month | $150.86 per month |
| 10+ years | Preferred Plus | $22.05 per month | $36.45 per month | $50.85 per month |
2 DUI on record
Sample rates for a 40-year-old male on a 20-year term
| Time since most recent DUI conviction | Health Class | $250K | $500K | $750K |
|---|---|---|---|---|
| Less than 5 years | Table 5 | $120.40 per month | $233.15 per month | $345.91 per month |
| 5-10 years | Table 2 | $75.04 per month | $142.43 per month | $209.83 per month |
| 10+ years | Preferred Plus | $27.23 per month | $46.80 per month | $66.38 per month |
Keep in mind, these sample rates assume otherwise good health and only factor in the DUI. In order to give you an accurate quote, we need to explore and consider any other health or lifestyle factors that may affect your premiums.
What About No Medical Exam Policies with a DUI?
For some people, the hassle of scheduling a medical exam or the fear of needles causes them to continually put off getting the life insurance coverage they KNOW they need to protect their family. In these cases, a “non-med” policy may make sense.
But how does a history of DUI or DWI work with no medical exam policies?
You can apply for non-med policies with a DUI. It’s fine.
Just don’t think you can hide your driving record or any alcohol abuse because it’s a non-med policy. They WILL still pull your Motor Vehicle Records.
Your medical records will still be checked as well. Any mention of alcohol abuse in your files will trigger higher rates.
Bottom line: Choose the non-medical exam policy for the right reasons and if you don’t mind paying higher premiums. Don’t try to hide your DUI thinking a non-med policy can do that for you. Be honest with a trusted independent life insurance professional and they can guide you through the options.
What Insurance Companies Are Best for People That Have a DUI or DWI?
Short answer: Probably Prudential. Many of the sample rates above came from them. We are placing many of our clients with a DUI/DWI on their record with Prudential at the moment.
Caution: We say “probably” for 2 reasons
- Every client is different. There are unique sets of circumstances for your DUI and for your overall health picture. There are many factors that go into underwriting and while important, the DUI is just one of them. It’s critical to for us to take a look at everything in order to make the best recommendation.
- Underwriting guidelines can change without notice. Prudential may be the best today, but it could be a different company next month. A good independent broker stays on top of all this. It’s important to react quickly and place clients based on the most current industry guidelines.
Bottom line: Let’s take a look at your situation so we can confirm if Prudential is right for you.
Now What?
Got questions? We are happy to help over phone or email, whatever is more comfortable for you.
Life insurance is the ONLY product we sell. Not many agencies can make that claim. Because of this, we are ALL OVER the ever-changing underwriting guidelines. We have plenty of tricks up our sleeve to always get our clients the lowest life insurance rates, every single time.
Life insurance rates are fixed by law so there is NO COST to use our help. The billion dollar insurance companies only look out for their own best interests. We look out for you.
We welcome the opportunity to help you find the best life insurance coverage for your family. I hope this article was helpful and that your day is going well.
