Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Possibly. If the applicant fails to disclose any history of being treated, arrested for dui or anything related to alcoholism during those first two years of a policy which is called contestibility period*. And that is only if the insured falis to disclose during the application process. If during the application process the applcant discloses this information and the insurance carrier offers a policy, it cannot resind the policy later.
After two years the carrier cannot void the policy. If a person becomes an alcoholic "after" the policy is issued, it cannot be taken away. * normally the contestibility period in most states is 2 years. Some states it is less. Some states also have additional clauses that should be reviewed.
As already stated it may. If a question relating to the alcoholism is answered falsely. However, there are Simplified Issue and Guaranteed Issue policies that do not ask all the questions that traditional policies ask. These plans have the higher risk factored into their pricing and coverages. A 30 year old alcoholic with liver disease can get coverage and the policy will pay the benefit, if all questions are answered truthfully. While not as low as someone in perfect health these plans are much more affordable that you would think.
If someone is defined as an being an alcoholic after the life insurance policy is issued, and there was no indication of alcoholism noted by a medical professional before issue, or no DUI's or court treatment were ordered for alcoholic tendencies before the policy went into effect, then alcoholism will not void a life insurance policy.
Developing cancer or any other risk factor AFTER a life insurance policy is in effect cannot void your life insurance if that risk was not involved at the time the policy was put into effect.
Alcoholism can be an issue with purchasing life insurance. It can lead to rated up premiums all the way to an outright decline of life insurance. There needs to be a record establishing alcoholism. A medical history of treatments or rehabilitation. An arrest record including but not limited to one or more DUIs. Be careful with self diagnosis. Just because you have a headache doesn't necessarily mean you have a brain tumor. You can be a heavy drinker and not be diagnosed as an alcoholic. Alcoholism needs to be a documented problem either medically or lawfully. Always be careful with self diagnosis.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance policies are rarely “voided.” There is a specified period, normally two years, during which the company can deny a death claim if it is determined that the applicant made false representations on the application. I chose the word “representation” deliberately. An applicant is only bound by their personal knowledge and is therefore not responsible for any diagnosis made after the application is taken. The answers to questions are based upon the knowledge of the applicant not the actual state of affairs. One of the symptoms of alcoholism is denial and if the applicant does not believe themselves to be an alcoholic and no medical professional has diagnosed them as being an alcoholic, the insurance company would be hard pressed to ever deny a claim in the first two years. After the first two years pass the company cannot deny a claim.
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After two years the carrier cannot void the policy. If a person becomes an alcoholic "after" the policy is issued, it cannot be taken away. * normally the contestibility period in most states is 2 years. Some states it is less. Some states also have additional clauses that should be reviewed.
Developing cancer or any other risk factor AFTER a life insurance policy is in effect cannot void your life insurance if that risk was not involved at the time the policy was put into effect.