by Chris Bantly » Tue Jul 14, 2009 04:54 pm
Now that I've made my title an alliteration, I can ask my question! Not that I want to make a niche of it, but I was asked a question by one of the agents yesterday and I had honestly never considered the following:
Are there any insurance companies that will allow a life insurance policy to be purchased on an incarcerated individual?
The scenario is two parents are attempting to get life insurance on their son (mid 30's) who also has a son that would need to be supported if something happened to him. I don't know what he did, nor do I know how long he will be in jail. I didn't see it as a problem, but apparently it is!
My thought is that they are in a relatively safe place, but I guess the insurance companies do not see it this way. Can anyone shed some light?
Are there any insurance companies that will allow a life insurance policy to be purchased on an incarcerated individual?
The scenario is two parents are attempting to get life insurance on their son (mid 30's) who also has a son that would need to be supported if something happened to him. I don't know what he did, nor do I know how long he will be in jail. I didn't see it as a problem, but apparently it is!
My thought is that they are in a relatively safe place, but I guess the insurance companies do not see it this way. Can anyone shed some light?
Posted: Tue Jul 14, 2009 06:06 pm Post Subject:
Jail is not a safe place. People who are in jail typically don't graduate from jail and go to safe places and live a safe lifestyle. I don't know of any company that will insure somebody in jail.
Are you sure that they aren't looking to make a buck on their son's death? I'm asking because they are insuring the wrong person. The son isn't supporting his son. It's the grandparents or the mother that needs the life insurance.
Posted: Tue Jul 14, 2009 07:25 pm Post Subject:
Sounds like they are hedging against a prison brawl. Usually, depending on the amount of the policy, you have to prove you're worth that much, i.e. how much you make, net worth. Pennies a day for stamping license plates won't get it done.
Posted: Tue Jul 14, 2009 08:25 pm Post Subject:
Jail is not a safe place. People who are in jail typically don't graduate from jail and go to safe places and live a safe lifestyle. I don't know of any company that will insure somebody in jail.
x2
We get leads for incarcerated people once in a while....just send it in for a credit. Not happening. I don't even think GI companies will issue a case like that.
Posted: Wed Jul 15, 2009 12:36 am Post Subject:
Are you sure that they aren't looking to make a buck on their son's death?
A little more information: he is there for some white collar crime. He will be out in 18 months. The mother does not work, but the son lives with her. Her primary source of income is child support (I guess it's being paid out of savings) and he is allowed to work part-time as a freelance writer.
Obviously not the typical case of incarcerated individual. Great American's underwriter said they would look at it as an individual case, but no idea how that will turn out.
I never really thought about the type of person in jail as far as what type of life they would live when they get out. Good Point!
Posted: Wed Jul 15, 2009 06:38 am Post Subject:
I've a question for the experts.
Suppose one is already insured, would his insurance get terminated if he goes to jail? What will be the insurers stand in this regard?
Posted: Wed Jul 15, 2009 10:22 am Post Subject:
I don't know what he did, nor do I know how long he will be in jail.
Don't you think there could be various reasons for a person to get imprisoned?
I guess there could be varying degrees of lawsuits and judgments (both criminal and civil). Won't an insurance carrier consider covering an individual who's been incarcerated (may be for a short term) upon nominal charges?
Posted: Wed Jul 15, 2009 10:33 am Post Subject:
One won't lose their insurance when they go to jail. A life insurance policy can't be changed because one's risk increases. After a person gets out of jail, the possibility exists that they can then get insurance.
Posted: Thu Jul 16, 2009 01:53 am Post Subject:
I can see them not losing it if they had in place before being put in jail but after? That to me would impose a big risk to an insurance company. Jail is not a pretty place and you can almost always count on something happening You hear about it all over the news, beatings, hangings, you name it. I really can not see an isurance company wanting to take a risk.
Posted: Thu Jul 16, 2009 10:47 am Post Subject:
After a person gets out of jail, the possibility exists that they can then get insurance.
So, you mean to say that a person can't apply for a new policy during the period of time he's in prison?
Steven
Posted: Thu Jul 16, 2009 06:06 pm Post Subject:
Yes, the person can apply. It's just that the person will get turned down for coverage. Who is going to jail to fill out the application? Do you have examiner who will be comfortable going to the jail to do the exam?
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