Great question! Unfortunately, not such a great answer. Nearly every company will deny someone who is currently incarcerated, or just released from prison. Insurance companies do not like risk, and being involved in activities that would land you in jail, or the being there alone, make it nearly impossible to find a company that will write you. That said, you may be able to find a company that will issue a "high risk" policy, but expect it to come with a very high price tag, and a lot of strings. I'm sorry that I did not have a better answer for you. Thanks for asking!
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
The vast majority of insurance companies will not approve life insurance coverage for someone who is incarcerated. I have not personally come across a carrier who will approve a policy for someone in jail.
When he/she is released from prison, he/she may be able to get coverage, but it will likely be table-rated depending on the circumstances surrounding why he/she was in prison.
You can get guaranteed issue life insurance on someone who is in jail. I called a guaranteed issue company to confirm this. The question is not asked on the application, and does not enter into their qualifying criteria. Guaranteed issue policies usually require that the applicant be at least age 40-50, and the policies usually have a maximum face amount of $25,000.
Keep in mind that if the incarcerated person has any lawsuits against him/her, any cash value in the policy can be targeted. Also, if the policy is to pay for final expenses, make sure to name a person or funeral home as the beneficiary on the policy, or the death benefit could be absorbed into the estate and also go to pay for restitution or legal fees.
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When he/she is released from prison, he/she may be able to get coverage, but it will likely be table-rated depending on the circumstances surrounding why he/she was in prison.
Keep in mind that if the incarcerated person has any lawsuits against him/her, any cash value in the policy can be targeted. Also, if the policy is to pay for final expenses, make sure to name a person or funeral home as the beneficiary on the policy, or the death benefit could be absorbed into the estate and also go to pay for restitution or legal fees.