I was recently charged with driving under the influence. I’m trying to understand all potential impacts as I determine whether or not I want to hire legal representation in an attempt to beat the DUI.
Does A DUI Affect Life Insurance?
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Many companies ask about and consider driving records when underwriting a new life insurance policy. Depending on your driving record a company may rate your premiums or perhaps decline. A DUI is criminal offence and it is taken quite seriously.
An experienced insurance broker, who can access several companies, should be able to help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
With simplified issue plans (those that do not require an exam, and usually do not require medical records), you may be approved as quickly as two years after the DUI, although some carriers will make you wait 10 years after the DUI to get that type of coverage.
If applying for a medically underwritten policy, the rate will vary depending on how many years from the DUI it has been. Underwriters also consider whether you had treatment for alcohol abuse in conjunction with the DUI, whether there were repeat offenses, if you still drink alcohol, etc.
In the worst case scenario of recent DUI, repeat DUI's, repeat treatments, still drinking, there is guaranteed issue life insurance for those who fit the age guidelines.
To get your best price for life insurance after a DUI, it is a good idea to use a broker who can shop the many policies out there and find you the best price.
Whether applying for a fully underwritten or non-medical life insurance policy, the carriers will want to know the input regarding a number of questions (typically you would fill out a DUI questionnaire form with the application) to make an accurate risk assessment:
1) How many times have you been charged with DUI/DWI?
2) When was the most recent charge?
3) Are you currently on probation?
4) Has your license been revoked or suspended one or more times?
5) Have you been cited for any other traffic offenses?
6) Have you sought treatment for alcohol abuse at a rehab facility or attended meetings with support groups like Alcoholics Anonymous?
7) Are you still drinking, or have you quit completely?
The most likely offer you receive, depending on how long it's been since the DUI, will either require a “table” rating and/or a “flat extra” rating. A table rating is an additional percentage charged on top of the standard premium.
As an example, a Table D/Table 4 is generally about two times the standard premium. A flat extra rating is an additional cost per thousand dollars of coverage, such as $2.50 per thousand. Another example would be a $1,000,000 policy with a flat extra of $2.50 per thousand would require additional premium of $2,500 in addition of the standard rate, regardless of how many years the policy is guaranteed.
If you have a history of DUI or DWI in your records, you should NOT apply with multiple companies at the same time. The more companies that give you a table rating, flat extra rating, or decline coverage on a formal application, the less likely you are to get a better offer.
Your best option is to consult with an experienced life insurance broker before applying for any coverage. We can shop the case for you among multiple carriers to get an understanding of the risk class carriers will likely assign for your coverage - this will point you in the direction of who is the most appropriate carrier to apply for coverage with. The risk class is the most critical item for coverage because it determines the premiums.
Please let me know if I can be of further assistance. Thanks very much.