Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
No. Insurance companies typically will not issue a life insurance policy to anyone who is incarcerated at the time of the application.
Please note, some may think that a "guaranteed issue" policy could be issued, however, these types of policies are cited as guaranteed issue in reference to a person's medical history not being a factor in the underwriting process. Guaranteed issue policies also feature a 2 or 3 year "graded" period on the policy.
A graded period means if death occurs in the first two years of the policy, then the carrier returns the premiums paid into the policy (unless death occurs under accidental means, then the full face amount is paid out). If death occurs after the graded period has expired, then the full death benefit is paid out.
That is an excellent question! I work with several insurance companies, and I do not know of a single one that will insure someone who is currently incarcerated, especially one on death row. Insurance companies are all about risk, and if the applicant is living a lifestyle that includes incarceration, you can bet they will pass every time. Generally there will be a period of time that must elapse before they will consider approving the claim. Unfortunately, this is one of those side effects of negative behavior that isn't considered beforehand, and becomes a big problem afterward. Sorry, but thanks for asking!
I called a guaranteed issue carrier to inquire as to whether they will cover someone who is incarcerated, and they said yes. They did not ask whether the person was on death row, and I do not believe that is a factor. If you would like me to check for you, please use the form to contact me.
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Please note, some may think that a "guaranteed issue" policy could be issued, however, these types of policies are cited as guaranteed issue in reference to a person's medical history not being a factor in the underwriting process. Guaranteed issue policies also feature a 2 or 3 year "graded" period on the policy.
A graded period means if death occurs in the first two years of the policy, then the carrier returns the premiums paid into the policy (unless death occurs under accidental means, then the full face amount is paid out). If death occurs after the graded period has expired, then the full death benefit is paid out.