Illinois Removes a Major Barrier to Final Expense Life Insurance

What House Bill 2425 Means for Families and Second Chances

At Legacy Crusade Financial, our mission has always been rooted in dignity, protection, and stewardship—especially for families who have historically been underserved or overlooked. That’s why a new Illinois law taking effect January 1, 2026 is an important step forward for thousands of residents across the state.

Illinois has passed House Bill 2425, a law designed to reduce discrimination in access to final expense (burial) life insurance for individuals with a past felony conviction. This change recognizes that people are more than their past mistakes—and that families deserve the ability to plan with peace of mind.

What Does the New Law Do?

House Bill 2425 prohibits life insurance companies from denying coverage, charging higher premiums, or limiting benefits for final expense life insurance solely because an applicant has a past felony conviction, provided the individual is not currently incarcerated.

This is a targeted, meaningful reform aimed at fairness and reintegration—not a blanket mandate.

Key Provisions at a Glance

No Sole-Based Denial

Insurers can no longer deny or restrict final expense policies only due to a prior felony conviction.

Applies Specifically to Final Expense Policies

These are typically small whole-life policies designed to cover funeral costs, medical bills, and end-of-life expenses.

Excludes Current Incarceration

The law does not require insurers to cover individuals who are currently incarcerated.

Promotes Dignity and Responsibility

The intent is to allow individuals who have completed their sentences to responsibly plan for their families’ financial well-being.

Why This Matters for Families

For many families, final expense insurance is not about wealth transfer—it’s about relief.

Without coverage, loved ones are often left scrambling to cover funeral costs that can range from $7,000 to $15,000 or more. Historically, a felony record—sometimes decades old—could quietly shut the door on affordable coverage, creating what supporters of the bill called “invisible handcuffs.”

This law helps remove those barriers and allows people who are working, contributing members of society to plan responsibly for the future.

How This Fits into Illinois’ Broader Consumer Protections

Illinois already prohibits life insurance discrimination based on factors such as disability and veteran status. House Bill 2425 extends those protections by adding past felony status—but only within the narrow scope of final expense insurance.

While some lawmakers raised concerns about limiting insurers’ risk assessment tools, supporters emphasized a critical distinction:

> This law does not erase underwriting—it simply prevents a criminal record alone from being used as a disqualifier for basic burial coverage.

What This Means for You

If you or a loved one:

Have a past felony conviction

Are not currently incarcerated

Want to ensure your family is not burdened with end-of-life expenses

This law opens the door to more fair, respectful access to final expense life insurance in Illinois starting in 2026.

Legacy Crusade Financial’s Perspective

At Legacy Crusade Financial, we believe:

Everyone deserves the opportunity to protect their family

Financial planning is an act of responsibility, not privilege

Redemption should include access—not exclusion

Laws like House Bill 2425 align with those values. They reinforce that planning ahead is a sign of growth, maturity, and care for the people you love.

If you have questions about final expense life insurance, eligibility, or how upcoming changes may affect your options, we’re here to help guide you—clearly, respectfully, and without judgment.

Because protecting your legacy shouldn’t be limited by your past.