Life Insurance for Recovering Alcoholics: Breaking the Stigma

Everyone needs a life insurance plan because it is essential for the financial protection of their loved ones upon their demise. However, there are categories of people that find it difficult to obtain adequate death benefit plans and they include persons that have a history of substance abuse especially alcoholism. This is because insurers see this group as high-risk which results in policy restriction, overage denials or higher premiums.

Due to the complications and other challenges faced by these recovering alcoholics, some just generally shy away from life insurance. Thankfully however, the tide is changing as some insurers are more informed and empathetic about addictions and recovery. This site: https://www.insurancehero.org.uk/types/life-insurance-for-ex-alcoholics.html sheds more light. They are challenging the status quo and stigma and recognizing that these individuals also deserve access to adequate death benefit plans.

In this article, we explore the misconceptions about people that are recovering from alcohol addiction and the challenges they face with getting life insurance. We will also share tips to help such people face their future with confidence.

Understanding the Stigma

In times past, alcoholism was seen more as a moral deficiency than a medical issue. This greatly affected how insurers viewed and evaluated applicants. Anyone who has a history of alcoholism was automatically categorized by underwriters as long-term health risk. This is due to the assumption of health complications like cardiovascular issues, liver diseases or relapse.

However, there are many factors that this stigma does not consider and they include the following: –

1.      Alcoholism is a medical condition that can be treated

2.      There is possibility and sustainability of recovery especially if the patient submits to therapy, accountability and ongoing support.

Based on the above, a good number of alcoholics recover and stay healthy and productive. This means that the longer they stay sober, the less risk of any health issue. That is why many insurers now treat applicants in this category on individual basis; based on their treatment history and years of sobriety.

Life Insurance Application Process for Recovering Alcoholics

Whenever anyone applies for life insurance, the company as a matter of course will carry out a comprehensive risk assessment. However, for those that have a record of alcoholism, the process is far more thorough. It typically involves the following: –

Medical Records and History

These companies will typically ask for access to medical records so that they can evaluate the overall health of the applicant including any health conditions that is associated with use of alcohol. Some of the issues they look out for include: –

1.      History of rehab or hospitalization

2.      Liver function (hepatitis, fatty liver or cirrhosis). Click here for more information on these conditions.

3.      Mental health issues

4.      Cholesterol levels and blood pressure

Disclosure of History of Substance Use/Abuse

Applicant will most likely be requested to fill out a questionnaire that includes: – (

1.      The age at which they began using alcohol

2.      Severity of use and duration

3.      Duration of sobriety

4.      Any relapses?

At this stage, it is very important the applicant is honest because any undisclosed information that is discovered at the point of underwriting can lead to policy cancellation or claim denial.

Support System and Current Lifestyle

There are information concerning how the applicant has managed to remain sober that insurers value and they include the following: –

1.      A stable living environment and job

2.      Regular participation in recovery programs such as AA or Smart Recovery

3.      Evidence of a healthy lifestyle that includes diet, therapy and exercise

4.      No DUI or legal issues in recent times

Tips for Recovering Alcoholics Seeking Life Insurance

If you are recovering alcoholic who needs life insurance, the following tips will help you get the best option for you: –

1.      Work with an Experienced Broker or Agent – There are insurance brokers whose specialty is high-risk cases. Those are the best agents to work with because they will help you position your application appropriately for the best result possible.

2.      You Might Have to Wait – If you have successfully achieved a one-year sobriety period, it is best to wait until you get to the 2nd-year mark before applying for a cover. This duration will improve your chances of approval significantly and also reduce premiums.

3.      Keep Accurate Record of your Medicals- keeping a journal or documentation of your recovery process can add credence to your application.

4.      Focus on Remaining Healthy All-round – Evidence of active engagement in regular exercise, weight management and quitting smoking, controlling your cholesterol and blood pressure is sure to increase the appeal of your application.

5.      Be Honest and Prepared to Answer Awkward Questions – Ensure that you do not hide your history and be ready to answer questions about your recover journey. This will build trust and also prevent complications down the road.

Why It’s Time to Break the Stigma

Risk is a big factor in the insurance industry; however, risk should be calculated with compassion and in fairness to all concerned. It is only fair to acknowledge that recovering alcoholics should not be defined by their past but by the effort they are putting into recovery and their determination to make something better of their lives.

So, to break the stigma, we have to acknowledge the following: –

1.      Recovery is not a one-off event but a lifelong commitment.

2.      Anyone who takes their sobriety and health seriously is no longer to be automatically considered high-risk.

3.      Insurers should seek to support and not punish recovery.

Conclusion

It is encouraging to know that life insurance for different people classified as high-risk is now possible and uncomplicated. People who have overcome addiction can with time, proper support and transparency get the right death benefit plan and financial cover that they and their loved ones deserve.

It is important to emphasize that recovery is actually a strength and not a weakness. To this end, insurers are revolutionizing their practices and society is also moving from judgment to understanding. This generally makes life insurance fairer and more accessible.

You can also watch the video below for more tips on life insurance in general.

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Phillip Olivas

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