Common Questions on How to Get Life Insurance with a History of Alcoholism
One of the unfortunate realities of life is that as an adult, you tend to push yourself to the limit. When the hardships of career, relationships and family come knocking at the door, you may decide go for that one outlet which allows you to just take a break from these problems so you can finally take a breather.
Alcohol finds its way as one of these outlets. It might be the first thing you considered, as casual drinking provides a pathway to temporarily calm yourself amidst all these challenges thrown your way.
You are not alone in this thinking, as many other people find comfort in handling that whiskey on the rocks whenever they are feeling stressed. According to a United States survey, in 2014, 87.6 percent of people 18 and above reported that they drank alcohol at some point in their lifetime; 71.0 percent reported that they drank in the past year; and 56.9 percent reported that they drank in the past month.
It is easy to see that those who are just growing to be adults seem to grasp the same insight. However, the harsher reality is that you are more likely to develop a dependency to alcohol as time goes by. In the United States alone, nearly 14 million adults, or every one in 13, abuses alcohol or has a form of alcohol-related conditions. In addition, several million more partake in risky alcohol consumption that could potentially lead to abuse, and over three million American teenagers aged 14 to 17 have an alcohol problem.
The good news is that many of you are now aware of the huge benefits of undergoing rehabilitation and education about this problem. That is also why many are finding themselves surviving this chapter in their lives.
With that settled, your aim as a matured individual is to keep yourself as far from it as possible by keeping yourself healthy – in every aspect. This is the point you consider not only the physical, mental and social aspect of yourself, but also the effect of your health on your financial status.
As many of you would know, life insurance is one of the best approaches to keeping you secured from financial losses as you age. This is why it is important that you find the one that best suits your needs. However, before even getting a hold of the benefits of your investment, life insurance companies do rigorous background check of your health background to help them gauge their decision to approve.
However, as you have undergone a bad case of drinking in the past, you may be faced with various challenges at this point. The fortunate reality is that in spite of all this, getting a life insurance with a history of alcoholism is still possible. That is why it is imperative that you are aware of the frequently asked questions regarding this matter.
Why does a History of Alcoholism matter to insurance companies?
Trying to find security with a history of alcohol abuse can be an intimidating task for a recovering alcoholic. This is because life insurance companies are aware of the health effects of alcohol on you. Even though alcoholism is a condition that is not generally fatal, it can still lead to behaviors and outcomes that can cause early death.
Companies see that your bad case of drinking may cause a higher chance of death by driving while intoxicated.
Another factor is that your likelihood of being in an accident and being impaired is highest when you are drunk. You are also more inclined to participate in activities that put you in dangerous situations that may lead to death or impairment, as well as criminal activity and incarceration, both of which produce shorter life spans.
As insurance companies tries to find business in the case of an alcoholic, giving life insurance to previous alcoholics may be somewhat a long shot. When a life insurance company issues a policy to anyone, they need to have assurance that that person will live for many years (for the client to pay for their premium for many years). Anytime there are any conditions that indicate early mortality, the company either increases the premium on the policy to compensate for the higher risk, or declines the policy outright.
What are the bases for insurance companies to determine if you were an alcoholic?
Companies most definitely want to know if clients ever struggled with alcoholism. In fact, when applying for a fully underwritten term or whole life insurance policy, you are asked if you have ever had a “history” of alcohol abuse. This question is left intentionally vague so that the answer of what qualifies as “history”, is left for the applicant to determine. Remember – insurance companies are not simply going to rely on an applicant’s “good faith” when it comes time to determining if they want to move forward with an approval.
Insurance companies typically perform a medical exam whereby a blood sample will be taken. This sample is used to screen for a variety of different conditions such as diabetes, hepatitis, AIDS, and for particular alcohol markers that may be present in someone who regularly consumes large quantities of alcohol.
A blood test is part of a routine health check in life insurance application process as it can indicate alcohol markers confirming consumption of large amounts of alcohol. An investigation of your medical records can reveal if you have ever sought treatment for alcoholism in the past. If you do have a history of alcohol abuse, the insurance underwriter needs to determine whether you are a recovering alcoholic, or a current alcoholic.
How do you prepare yourself to getting that life insurance even with this history?
When you apply for life insurance, what they are actually doing is applying for 1 of 16 different rate classes that an insurance company will use to determine if they wish to extend coverage to an individual.
The top 4 rate classes are Preferred Plus, Preferred, Standard Plus, and Standard. Below a standard rate class is considered “high risk” and depending on who you apply with, this may mean that you may no longer be eligible for traditional term or whole life insurance coverage.
This is why recovering alcoholic needs to be particularly careful when applying for life insurance.
There are important measures you can take to prepare yourself before applying for term life insurance. Doing so can help your chances of getting approved at the best rating class possible.
Beyond maintaining your health, the single most important decision you have to make is choosing a life insurance broker who can work with you. Any time you have any kind of health condition, a good insurance broker guide you on what you need to do to achieve a favorable result on your application for life insurance .
The broker you chose serves as the one who will work with you in searching, assisting and dealing with dozens of different life insurance companies, rather than just one. The broker knows which insurance companies are more likely to approve a person with a history of alcoholism – and which companies might be better to leave out from your list.