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The best life insurance companies can help recovering alcoholics get a good policy at an affordable rate.
Everyone has their vices, and many people fight hard to overcome them. Life insurance can be impacted by said vices, with smoking, drinking and eating badly leading to higher life insurance rates. The right life insurance company will get you the most affordable coverage, even after you’ve kicked your bad habits. When it comes to recovering alcoholics, your past can haunt you long after you’ve been sober, which is why it’s important to find the best life insurance company to help you get a policy.
Life insurance companies take alcohol abuse seriously (we’ll get to why in a bit). These companies are the best when it comes to accommodating you while shopping for life insurance.
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Alcoholism can take a toll on your health, which can impact your life insurance rates.
According to the Centers for Disease Control, excessive alcohol use can lead to increased risk of these health issues, to name a few:
During the life insurance underwriting process, insurers check your current health and health history for these issues. For instance, the blood test will check for elevated levels of certain enzymes associated with liver disease and other health issues.
If you’re struggling with alcohol you should seek help before thinking about buying life insurance. Programs like Alcoholics Anonymous can provide a valuable support group that will be valuable not only in life, but to your life insurance.
During the underwriting process, life insurers look at how risky you are to insure, and assign you a classification accordingly. If there are prominent health issues like those described earlier, they will lower your classification. Combine that with a high recidivism rate – some sources say as many as 80% of recovering alcoholics relapse within the first year – and life insurers are wary of giving the best ratings.
Generally speaking, recovering alcoholics will find it hard to get coverage immediately after graduating a counseling program but will find better rates the further into recovery they get. For the first seven or so years after graduating a program, you can expect to be declined or table rated. (Table ratings are a collective group of sub-prime classifications. You can read more about table ratings and other classifications here.)
A standard classification is typically the best you’ll get starting around 5-6 years after rehab. Ten or more years out, depending on your overall health, lifestyle and the insurer you choose, you may be able to get a better classification – and lower rates. This is one of the reasons it’s important to use a life insurance broker that can shop your application around to different insurers: You never know who will get you the best deal on a policy.
One caveat to the above: All of the above is assuming total abstinence, and no drinks means no drinks. If you’ve graduated a counseling program but admit to having even an occasional drink, you’re likely to be declined outright. Of course, lying on your application can result in your policy being canceled, so don’t do that either. Your best option is to stay sober and lean on your support network when needed. It’s better for you, and ensures you won’t endanger the safety net you’re building for your loved ones.
The life insurance application process can take up to eight weeks, and a big chunk of that time is in getting an APS – an Attending Physician Statement. An APS is your health history as told by your doctor and gives the insurer a good look at your past. It can take a while for the insurer to get an APS since doctors are often busy.
Recovering alcoholics almost always have their medical records pulled. That means applicants can expect to be on the longer side of those eight weeks while the insurer waits for those records.
An insurer will also get a motor vehicle report, or MVR. This is your consolidated driving record. Arrests for driving under the influence or driving while intoxicated are a problem for everyone, resulting in higher risk and higher rate, but alcoholics are more likely to have a DUI/DWI on their record. This can make a complicated rating process even more complex and add another layer of cost to your eventual policy.
Buying life insurance for recovering alcoholics can be more involved than the standard application, but it’s not impossible. The key is knowing what challenges you might face to set your expectations, and choose the company willing to work with you and get you the best rates possible.
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Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
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