If you eat HOT chili (defined as whatever is too hot for your own taste), washing it down with beer or any alcoholic drink will help. So will eating a fat, such as butter, sour cream, guacamole, etc. The capiscums are dissolved in alcohol or fat and rendered much more edible thereby.
Water won't work. Milk and beer will.
Further words: when visiting a New Mexican restaurant, ask what color the hot chili of the day is. Then order the other one. You only get the choices of red and green, so it's not hard to chose.
As for beans in chili, originally no. No tomatoes, either. But that's all changed over the years. When I make chili, I don't use beans but I do put in rice.