Illinois has enacted a law prohibiting life insurers from rejecting or overpricing final-expense policies solely because an applicant has a felony conviction. Governor J.B. Pritzker signed the measure on Aug 15. It takes effect Jan 1, 2026.
Illinois enacted House Bill 2425, which prohibits final expense life insurers from denying coverage, limiting benefits, or charging different rates solely due to a felony conviction history, though an exception is made for currently incarcerated individuals.
This law aims to reduce discrimination, support people with past felony convictions in their reintegration, and ensure they can plan for their end-of-life expenses with dignity
The statute closes a gap in consumer protections by adding felony status to existing anti-discrimination rules that already cover disability, blindness, veteran status, and travel history. It allows one exception: insurers may still deny applicants who remain incarcerated at the time of application.
Final-expense policies, structured as small whole-life contracts, help families pay for funeral services, medical bills, and other end-of-life costs. Lawmakers said exclusion from these products often left households facing unexpected debt.
State Sen. Adriane Johnson, a Democrat representing Illinois’ 30th District, sponsored the legislation. She argued the insurance market unfairly blocked people with convictions from securing basic financial protection.
A criminal record should not follow you to the grave. Everyone deserves the ability to plan for final expenses and to spare their loved ones from financial burdens.
State Sen. Adriane Johnson, a Democrat representing Illinois’ 30th District
The bill passed the Senate 36–18 and cleared the House 76–38 before landing on the governor’s desk. Consumer advocates said the outcome reflects a growing push to remove structural barriers that hinder re-entry after prison.
Industry analysts expect insurers to review underwriting frameworks before 2026 to ensure compliance.
Insurers that previously applied blanket restrictions will need to adopt individualized risk assessments, aligning with the state’s new legal requirements.
Illinois becomes one of the first states to specifically bar felony-based discrimination in this segment of the life insurance market. Observers said the law could serve as a model for other jurisdictions as regulators scrutinize fairness in underwriting.
