Best life insurance for recovering alcoholics
There are approximately 15 million alcoholics in the United States, with an estimated 36% in recovery. Having a history of alcohol abuse can make it more difficult to obtain life insurance coverage, as life insurance companies set premiums based in part on current and past health and assign a risk class based on the applicant's life expectancy. Alcoholics pose a significant risk in the eyes of insurers due to a slew of serious illnesses linked to alcoholism and heavy drinking. Recovering alcoholics should understand the life insurance purchasing process and how their history of alcohol abuse may affect their chances of approval.
How alcoholism impacts health
Alcoholism can have a devastating effect on a person's mental and physical health. According to the National Institute on Alcohol Abuse and Alcoholism, alcoholism or alcohol use disorder (AUD) is "a medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences" (NIAAA). An alcoholic's life is likely to be cut short by nearly 29 years unless they are treated and on the road to recovery. The following are some of the more serious health risks associated with alcoholism:
- Liver disease – Because of its critical role in ethanol metabolism, the liver is the organ in the body that typically "sustains the greatest degree of tissue injury" from alcohol. Following on from initial issues such as alcoholic hepatitis, continued excessive alcohol use frequently results in irreversible liver scarring and death.
- Cardiovascular health – Alcoholism is a leading cause of high blood pressure, heart disease, and atrial fibrillation. Alcohol abuse can significantly increase the risk of stroke, with one study reporting a 35% increase in risk after four or more drinks per day.
- Cancer risk – Chronic alcohol use increases the risk of developing a variety of cancers, including cancers of the liver, breast, esophagus, stomach, and mouth.
- Psychiatric disorders and dementia – Alcohol abuse frequently causes anxiety, depression, and memory loss, and it can lead to significant antisocial behavior. Eventually, symptoms may lead to behavior similar to that of psychotic disorders.
The main difference between drinkers and alcoholics is that alcoholics are "physically and mentally dependent on" alcohol. Alcoholism is classified as an addiction due to its dependency aspect.
The following are some common categories used to describe various types of drinkers. Each of the drinkers described may suffer negative health consequences as a result of their drinking episodes.
Drinking level | Definition |
Moderate consumption | Moderate drinking, according to the USDA, involves consuming no more than two drinks a day for men and one drink a day for women. |
Binge drinking | Binge drinking is a pattern of drinking that generates high blood alcohol concentrations (BAC) quickly. For men, having five or more drinks in two hours is considered binge drinking. For women, the amount is four or more drinks in the same period. |
Problem drinking | Problem drinkers are not considered to be addicted to alcohol and may sometimes not drink at all for long periods. They may not experience withdrawal symptoms when they abstain from drinking like alcoholics do, but when they do drink, problems often occur. |
Heavy drinking | NIAAA defines heavy alcohol use as drinking more than four drinks a day or more than 14 per week. Women are considered heavy drinkers when they have more than three drinks a day or more than seven per week. |
Life insurance for recovering alcoholics
The length of the applicant's sobriety is an important consideration when seeking life insurance as a recovering alcoholic. The length of time spent in recovery is frequently used by life insurance companies to predict the likelihood of continued sobriety. The greater the company's confidence in your continued sobriety, the lower your assessed risk and life insurance premium may be. This is because the longer you are sober, the less likely it is that one of the many health and behavioral issues that affect alcoholics will shorten your life expectancy.
To assess this risk, life insurers use a variety of tools, including the following:
Questionnaire
Typically, an application questionnaire will ask if you have ever been diagnosed with a drug or alcohol problem. Withholding information about your history or other issues is not recommended by insurance experts, as it may result in the cancellation of your policy. Following that, the questionnaire may ask you a series of questions to determine how long you've been sober and what steps you're taking to stay sober.
Medical exam
A medical examination is required for most term or whole life insurance policies. The exam will look for current alcohol levels in the bloodstream, but the examiner will also analyze blood and urine samples to see if there are any proteins or other abnormalities that indicate long-term use.
It is important to remember that most insurance companies require a release allowing the review of all the applicant's medical records at this stage. Prior doctor visits may have resulted in chart notes indicating a problem with alcohol abuse that the applicant is unaware of.
Medical report
The MIB maintains a database of insurance applications for health and life insurance, which insurers use to ensure that the information provided by the applicant is correct. If you apply for life insurance and misreport information about your mental health history, an insurer may discover the error by reviewing your collective MIB data.
Best life insurance for recovering alcoholics
Term life insurance
Term life insurance is simple and provides a fixed death benefit if the insured dies during the term. Documented sobriety may help you qualify for this policy, and a life insurance company will usually look for at least five years of sobriety.
Term life insurance policies are typically written for 10, 20, or 30 years. If the policyholder died during the term of the policy, the beneficiary would receive a death benefit.
No exam life insurance
This is a type of guaranteed insurance, and each company offering it may take a different approach. No exam life insurance allows you to obtain a policy with a much shorter waiting period and may not cost significantly more than other traditional policies.
Instead of a medical exam, an applicant will fill out a detailed questionnaire with medical questions. There is a chance that coverage will be denied for a recovering alcoholic based on factors such as length of sobriety. Death benefits may be denied if information about alcohol abuse is withheld.
Guaranteed issue life insurance
An alcoholic who is still actively drinking may not be eligible for either permanent or term life insurance. For active alcoholics, those with short periods of sobriety, or those with a relapse history, a guaranteed life insurance policy may be an option. Guaranteed life insurance policies are typically low coverage whole life insurance policies, but they may be an option for alcoholics who are still in recovery. These policies are typically more expensive than exam-required life insurance because they are issued without a medical exam.
Can you get permanent life insurance as a recovering alcoholic?
As a recovering alcoholic, you can obtain permanent life insurance. If you need insurance for the rest of your life, permanent life insurance may be a better option. If you buy term life insurance and outlive it, you may have to go through a new underwriting process to get a new policy if you do not convert to a whole life policy before it expires. Though permanent life insurance is typically more expensive than term life insurance, you will not be required to recertify your health in the future as long as you keep the policy paid and in force. Depending on your health, permanent life insurance may be less expensive than guaranteed issue life insurance.
Tips for getting life insurance as a recovering alcoholic
While finding life insurance as a recovering alcoholic may appear difficult, there are a few things you can do to help. Some factors that may work in your favor are as follows:
- A longer history of sobriety: If you have been sober for at least five years, you may have more options for life insurance policies. Because reducing any potential risks associated with your health and lifestyle can help you qualify for life insurance, staying otherwise healthy is usually a good goal to maintain.
- Participating in a support group: Actively participating in groups such as alcoholics anonymous (AA) or others dedicated to assisting those in recovery may indicate your continued commitment to sobriety. While it may not directly affect rates, it may reduce your risk of being insured.
- Being truthful about your drinking history: While it may be tempting to withhold information about your alcoholism struggles, doing so may put you at greater risk of not receiving claim payments or a death benefit. Attempting to minimize your alcoholism or other health-related concerns may cause problems with your coverage or even void it.