Quitting alcohol takes a lot of time and most times is impossible. It is one of those addictive habits that don’t seem to go away. However, we have had cases of alcoholics that ended up quitting for good. One of the ways to do that is to sign up for life insurance for recovering alcoholics.
Generally, life insurance policies protect the policyholder throughout their lifetime. At the end of the day, the beneficiaries named on the policy get the death benefit. In this article, you will find out how life insurance for recovering alcoholics works.
What is Life Insurance for Recovering Alcoholics?
It is a type of insurance policy exclusive to alcoholics or people who take alcohol frequently. Note that you may be unable to qualify for it if you haven’t sobered up. That is why your alcoholic life insurance provider may require up to 3 years of sobriety before issuing the policy.
Can an Alcoholic Get Life Insurance?
An alcoholic can get life insurance for recovering alcoholics only if the person proves to the insurer to be qualified. The insurance company typically considers the length of the alcoholic’s recovery, which could be up to 3 years minimum.
Also, the alcoholic must be certified to be out of harm’s way, health-wise. This includes having little or no health complications, such as dementia, liver disease, and cancer.
Last but not least, the insurer justifies the life insurance policy and alcoholism by checking the dependency or drinking levels. An alcoholic is adjudged someone that is heavily dependent on alcohol, thus leading to addiction.
How Can Alcoholics Get Life Insurance?
As a recovering alcoholic, you have a lot of options to choose from. Here are some of the options and how they work.
1. Term Life Insurance for Recovering Alcoholics
This is one of the most popular life insurance policies for recovering alcoholics. It involves buying a life insurance policy that “stays with you for life.” The policy remains active, provided you pay the premiums and are alive.
When you pass away, the death benefit is paid to your beneficiaries – who you must have named on the policy.
Duration of Term Life Insurance for Recovering Alcoholics
Term life insurance policies typically run into tens of years. You can choose from any of the 10-year, 20-year, or 30-year options. They are also subject to renewals.
2. Go for Guaranteed Life Insurance Policies
Quitting alcohol and indeed any addiction takes a lot of time. Most times, you end up going back to it after a few months of staying away.
In that case, the traditional life insurance for recovering alcoholics may not work for you because the insurer wouldn’t be willing to go ahead with the plan.
The best option is to go for a “flexible life insurance policy” that protects your addiction until you are willing to give it up for good.
The guaranteed life insurance policy is one of the best out there. It allows you to pay lower premiums and flexible enough to accommodate your relapses.
The downside is that it is expensive and may cost you an arm and a leg. But if you are looking for a flexible insurance plan that is also accommodative, it is the one to go for. You also get to enjoy the no-medical exam benefit that typically comes with it.
3. Buy Group Life Insurance
Unlike the other types of life insurance for recovering alcoholics, group life insurance isn’t purchased individually. As the name signifies, it is a grouped policy, meaning that multiple policyholders are involved.
The group life insurance policy is typically purchased and offered as one of the employee benefits. Your employer buys it for you and other employees.
It may be a great way to save costs with life insurance for recovering alcoholics but at the expense of flexibility. Since your employer purchased it, you may be unable to take it with you if you quit the workplace.
Another disadvantage is that the group life insurance for recovering alcoholics doesn’t offer much coverage. Therefore, you may have to purchase additional coverages as add-ons.
On the brighter side, the policy doesn’t require much from you, as you may not be asked to disclose your health information.
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4. Purchase the No Exam Life Insurance for Recovering Alcoholics
As the name suggests, it is a type of life insurance that doesn’t require an examination. All you will most likely be required to provide are answers to the questionnaires. You will also be asked to disclose answers to a couple of health-related questions.
The downside to purchasing the no-exam life insurance for alcoholics is that the application will be denied if the sober period is shorter. Also, the insurer will withhold your death benefits if some alcohol-related answers are skipped.
Factors that Influence the Choice of a Best Life Insurance for Recovering Alcoholics
Certain factors can influence the outcome of your life insurance for recovering alcoholics application. Here are some of those factors.
How Sober are You?
Your life insurance provider typically wants to be certain of your sobriety. This depends on a series of factors, including how long you stopped hitting the bottle.
Three-year sobriety is usually the standard and is the costliest. If you have been sobered for five to nine years, you can enjoy standard rates. Lower rates on life insurance for recovering alcoholics are feasible if your sobriety is up to 10 years.
Do you have any health issues? Whether it is depression, brain damage, or anxiety, it could affect your chances of recovery. That would also mean that the life insurer is taking a chance on you and would only be willing to do that by offering a higher premium.
Driving and Criminal Record
Your life insurer will also check both your past driving and criminal records. Factors like DWI, DUI, and arrests could prevent you from getting life insurance for recovering alcoholics.
Essentially, any alcohol-induced illegal activity that you have been charged with can impact your chances of getting a yes.
Do You Abuse Alcohol?
Alcohol abuse is not limited to frequent drinking. It also includes the use of substances, such as smoking tobacco.
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Can a Recovering Alcoholic Get Life Insurance?
A recovering alcoholic may be able to get life insurance for recovering alcoholics if in good health and leading a good lifestyle.
Does Insurance Cover Alcohol Intoxication?
The guaranteed life insurance policy is flexible and could accommodate alcohol intoxication. Check with your policy provider to be sure.
Can My Life Insurance Application be Denied because of Alcohol?
Your life insurance company can turn down the application if you haven’t sobered up and if you have serious health challenges.
Getting life insurance for recovering alcoholics could be one major milestone in your efforts to quit alcoholism. Contact a reliable life insurance provider to compare your options before making an application.