Does Alcoholism Void Life Insurance?

Shawn Plummer

CEO, The Annuity Expert

Does Alcoholism Void Life Insurance?

Alcoholism does not automatically void a life insurance policy. If the policy is active and in force, which means the insurance company accepted the application during the underwriting process, the policy will typically pay out even if the cause of death is related to alcohol use or abuse. However, there are important considerations to keep in mind:

  1. Disclosure During Application: If alcoholism or related health issues were not disclosed during the application process, and the insurance company later discovers this nondisclosure, they may contest or deny a claim.
  2. Policy Terms and Exclusions: Some policies may have specific exclusions related to alcohol use. It’s crucial to read and understand the terms of your policy.
  3. Contestability Period: Life insurance policies usually have a contestability period, often the first two years after the policy is issued. If the insured dies during this period, the insurer may investigate the claim more thoroughly, which could include examining the insured’s health history and lifestyle choices, like alcohol consumption.
  4. Impact on Premiums and Coverage: While alcoholism might not void a policy, it can affect premiums and coverage options. Insurers may charge higher premiums or offer limited coverage to individuals with a history of alcohol abuse due to the increased risk.

Related Reading: Can you be denied life insurance for smoking

Impact of Alcoholism on Life Insurance

AspectImpact on Life Insurance due to Alcoholism
Policy ValidityGenerally remains valid unless fraud is involved
Premium RatesHigher rates due to increased health risks
Coverage OptionsMay be limited for individuals with a history of alcohol abuse
Claim InvestigationMore thorough if death occurs during the contestability period
PayoutGenerally unaffected unless policy exclusions apply

Conclusion

In summary, alcoholism doesn’t automatically void a life insurance policy, but it can have significant impacts on policy terms, premiums, and the claims process. Understanding these aspects ensures you are well-informed about how life insurance works in relation to alcohol consumption. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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