Is it possible for a life insurance company to deny your claim because the insured had alcohol in their system? The unfortunate reality is that many life insurance claims for death benefits are unjustly denied when alcohol use is involved.
Did your life insurance claim get denied due to the insured’s alcohol use? Was the death caused by alcohol-related complications, or was alcohol consumption simply a factor, even if it wasn’t directly related to the cause of death?
In many situations, life insurance companies wrongfully deny claims based on alcohol consumption. Our experienced life insurance beneficiary attorneys at Boonswang Law are here to assist you in challenging and appealing the denial. There’s no cost unless we win your case.
If you or a loved one is struggling with alcohol abuse, call the Substance Abuse and Mental Health Services Administration (SAMHSA) hotline at 1-800-662-HELP (4357) for free and confidential help, 24 hours a day.
Why Do Life Insurance Companies Often Deny Claims Due to Alcohol Consumption?
Insurance companies prioritize profit for their shareholders, which often leads them to deny life insurance claims, especially when alcohol is involved. For this reason, they will seize any opportunity, no matter how unlikely, to deny a claim initially, particularly if alcohol consumption is a factor.
Does Alcohol Consumption Impact Life Insurance Coverage and Claims?
Yes, alcohol consumption can significantly impact whether a life insurance policy is paid out or if an applicant qualifies for coverage.
If an insured discloses alcohol use on their life insurance application, the insurance company will factor that information into the policy terms. Life insurance companies often justify denying life insurance claims by arguing that alcohol consumption affects premium rates and, in some cases, may even lead to a denial of coverage at the application stage.
Will Life Insurance Pay Out for an Alcohol-Related Death?
Life insurance may pay out after the death of a policyholder who had a history of alcoholism, but it largely depends on the circumstances and the specific terms outlined in the life insurance policy. If the insured disclosed a history of alcoholism on their life insurance application, the insurer may factor that into the underwriting process, higher premiums or exclusions for alcohol-related deaths.
However, if the insured’s death was caused by something unrelated to alcohol consumption, a life insurance attorney can challenge the claim denial and fight to have the claim paid. If the insured failed to disclose alcoholism during the application process, the insurer may deny the claim due to misrepresentation. In situations where alcoholism is excluded from life insurance coverage, an attorney may be able to negotiate a settlement or argue that the death was not caused by alcohol use, improving the likelihood of securing the death benefit.
What Are the Reasons for a Life Insurance Claim Denial Due to Alcohol?
Here are the types of deaths not covered by life insurance when alcohol use is involved:
The Policy has an Alcohol Intoxication Exclusion
In about half of all states in the U.S., life insurance companies are permitted to add an exclusion to policies to exclude coverage for deaths directly or indirectly related to alcohol consumption. If the insured is intoxicated and dies for any reason, the insurance company will deny the claim under this alcohol-related exclusion.
Misrepresentation of Alcohol Use on the Life Insurance Application and Medical Questionnaire
If the insured fails to disclose alcohol use or omits past or current alcoholism, and the death of the insured was in any way related to alcohol consumption, the insurer will likely deny your life insurance claim for death benefits due to alleged misrepresentation on the part of the insured.
We can sometimes resolve these claims for the amount of the death benefit minus the amount the insured would have paid in premiums had the underwriter known that the insured consumed alcohol.
The Insured Died During the Contestability Period, and Alcohol Use Was Not Disclosed
If the insured dies within two years of purchasing the policy, the insurer will grasp at any reason to deny your life insurance claim, even if that reason has absolutely nothing to do with the cause of death.
For example, if the insured failed to disclose that they used alcohol socially and then dies of something having nothing to do with alcohol consumption, such as mesothelioma, the insurer may allege that the insured misrepresented himself and deny your life insurance claim.
We are frequently able to get these claims paid, especially if the death was unrelated to alcohol use or abuse.
The Insured Died While Engaging in an Illegal Activity Involving Alcohol
If the insured died while doing something illegal – for example, drinking and driving – the insurer will deny your life insurance claim under the illegal act exclusion. If the insured had a few drinks at a friend’s dinner party, mistakenly trespassed on a neighbor’s yard on the way home, and was struck by a falling branch and killed, the insurer may use the alcohol consumption to deny your life insurance claim.
Let the Life Insurance Beneficiary Attorneys at Boonswang Law Fight for Your Alcohol-Related Claim!
If your claim has been denied for an alcohol-related reason, do not give up! There are many circumstances under which we can get that claim paid or even negotiate a settlement for you. Keep in mind that we take cases on a contingency basis, meaning that we do not get paid unless we win. Contact us for your free, no-obligation consultation. Let us help you fight the life insurance company.