Life insurance underwriters make it quite clear that the mortality risk associated with DUI and for sure multiple DUI’s is substantial. With one exception we haven’t found any companies that will even approve a policy for someone with a DUI in the first year. Most start opening the door for a single instance at three or five years out from the incident as long as there isn’t a problematic drinking drug history risk that goes with it.
But let’s talk about that need for life insurance that happens to fall within the first year after a DUI. Most of the time a person can wait it out but we’ve had several clients who were either forced, due to business situations or wives, to get it now. We’ve looked at both situations recently and have been able to get reasonable approvals in both situations with a caveat. It can’t be the typical you. By that we mean, if you’re a light to moderate drinker and you just had one too many and got caught, we can help. If you drink too much and finally got caught, we really can’t help you until the drinking problem is in the past.
We wanted to share a couple of situations just recently where we could help so you’ll get the drift of what kind of risk can be approved in the first year. We recently got a call from the CEO of a company in Texas needing life insurance. He had been traveling this past winter and got a bad chest cold. It got so bad he went to the hospital where they checked him out and gave him some major decongesting medicine. It was late in the evening and he was worn out from the cold, the time of day and one of the side effects of the medicine was drowsiness. While the doctor recommended not driving he was close to his motel and didn’t think it would be a problem.
Until the lights came on. He had been out of his lane a few times and got pulled over and while not drunk because he hadn’t been drinking, couldn’t pass the roadside tests and was charged with driving under the influence. This just happened to coincide with his board of directors needing him to have $1mm of key man life insurance to satisfy a creditor requirement so he applied and was declined by two companies. He called in desperation because this was not something that could be put off until a year or two had passed. We were able to get him approved and taken care of at a very reasonable rate. In a few years we’ll be able to get him even better rates, but he and the bank were satisfied.
The other is a case we’re currently working on is a young guy that is a very moderate drinker, a six pack a week at most and never all at once. Just an fyi, depending on BMI and other factors just two beers can get you in trouble. Such was the case when he had two with some friends and jumped in his car. He was pulled over for speeding but ended up with a DWI after blowing .07 (welcome to Colorado where the legal limit is .05). We shopped it and have an application currently in underwriting that will give him the $2mm he needs at a great price. He is currently 8 months out from the incident and we should be able to get him even better rates when he gets to 2 years. He was also declined by two companies.
Just an fyi. Underwriters really don’t care what you plea bargained down to. If you were under the influence you will be declined by almost every company for at least a year, most for three to five years. If you’re in that period within 2 years of a DUI and need insurance call or email us directly. We can help.
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