Life Insurance and Alcoholism
If you’re a recovering alcoholic and you are looking for life insurance coverage, the good news is that coverage is available in many cases. The bad news is that life insurance companies are pretty strict in how they view alcohol usage. Not only are there health risks associated with heavy alcohol usage, but there are also lifestyle risks as well. The key is to find the life insurance company that will be the right fit for your particular situation. If you regularly use alcohol or you are in alcohol recovery, you should be aware of your life insurance options. Here is what you need to know about life insurance and alcoholism.
Statistics on Alcoholism
- 88,000 deaths annually are attributed to excessive alcohol use. (CDC)
- Alcoholism is the 3rd leading lifestyle-related cause of death in the nation. (CDC)
- The long-term health risks associated with excessive alcohol use include high blood pressure, heart disease, liver disease, mental problems and increased risk of cancer to name a few. (CDC)
- Over 3 million people sought treatment for the use and abuse of drugs and alcohol. (NSDUH)
- It is estimated that over 20 million need treatment but do not attempt to seek it out. (NSDUH)
- 100,000 persons die each year from alcohol-related causes: drinking and driving crashes, other accidents, falls, fires, alcohol-related homicides and suicides. (NCAAD)
Why Life Insurance Companies are Strict about Alcohol Usage
As you can see by the statistics above, alcohol abuse raises the risk of death. It is not only the health issues associated with alcohol abuse, but also the added lifestyle risk as well. For instance, if you abuse alcohol, you are more prone to DUI, car accidents and other accidents such as falls. This makes you a very risky applicant in the eyes of the insurance company.
How do Life Insurance Companies Assess Alcoholism and Recovery?
When you fill out a life insurance application, you will be asked questions such as:
- How often do you consume alcohol?
- Have you ever sought treatment for alcoholism?
- Have you ever been convicted of driving while impaired?
You will have to explain any of your ‘yes’ answers on the application in detail. Some companies might also ask you to fill out a detailed alcohol questionnaire. You should also know that if you have been treated for alcohol abuse or you are considered a heavy user, the insurance company will want to review your medical records.
The results of your paramedical exam could also expose excessive alcohol consumption. Life insurance companies use your blood sample to test for certain alcohol markers. If you are a heavy drinker and don’t disclose it on your application, you could get flagged during the underwriting process.
If you are a recovering alcoholic, the life insurance company is going to want to know more information about your situation such as:
- Age of diagnosis?
- How long have you been sober?
- Are you a member of a self-help group?
- What type of treatment did you seek (medication, self-help groups etc.)
- Any other health impairments related to alcoholism?
- Any social or legal problems related to your alcoholism?
- Any Abuse of other drugs?
What Health Class Rating Can a Recovering Alcoholic Expect?
If you want to get the best possible rating for your condition, you should make sure that your recovery is well documented with frequent updates to your medical records and a detailed account of your recovery. Any favorable aspects such as regular attendance at self-help groups such as Alcoholics Anonymous, a record of continuous employment or improved health will make a big difference.
Here are some guidelines as to what you can expect in terms of potential health class ratings for alcoholism. Remember though, your health class rating will ultimately depend on the specifics of your particular case.
Just Started Recovery
If you have just started your recovery, you will most likely be postponed until your recovery has lasted at least 2 years.
Short Term Recovery 2-5 Years
If you’ve been in recovery for at least 2 years, but less than 5 years, you will most likely receive a substandard rating or ‘Table Rating’. This is assuming that you don’t have any other major health or lifestyle impairments.
Intermediate Recovery 5-10 Years
If you have been in recovery for at least 5 years, you could qualify for a ‘Standard’ or ‘Standard Plus’ health rating in some cases. You must show a well-documented recovery with little or no other health issues.
Long Term Recovery 10+ Years
For those that have been in long term recovery for 10 years or more, ‘Preferred Rates’ are possible. Again, your recovery will be looked at closely along with your overall health and lifestyle.
Holding Out for a Better Rate Could Be a Mistake
You might think that holding out until you hit the 5 or 10 year recovery mark is the best way to go so that you can potentially get a ‘Standard’ or better rate. Even if you’ve only been in recovery for 2 years, it could make sense to purchase a policy now and reapply when you hit the 5 or 10 year mark in your recovery. Putting off buying life insurance if you truly need it is not a good idea.
Finding the Best Rate for Life Insurance with Alcoholism
If you need life insurance but think that your alcohol abuse might be an issue, the good news is that there are coverage options out there. Although all life insurance companies take alcoholism very seriously, there are certain companies that are a bit more lenient than others. The key is to work with an independent agency, like ours, that has access to over 40 companies. We can shop your particular case to multiple companies to match you with the one that will give you the best rate for your situation. If you’re in alcohol recovery and looking for life insurance, we can help. Give us a call at 888-687-9444 or email us at info@archstoneagency.com for a free no obligation consultation.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
