How do life insurance companies view alcohol use? How much alcohol use is deemed to be alcohol abuse?
For those individuals who occasionally enjoy alcoholic beverages, life insurance premiums will not likely be affected. However, heavy alcohol use can have an affect on your health and your life expectancy, which means that life insurance companies will likely frown upon insuring someone who engages in frequent, heavy drinking.
The Effects of Alcohol Abuse
From shorter life expectancies to a host of health problems, including heart disease, stroke, depression and liver disease, heavy alcohol can have a detrimental affect on a person’s life. So it is no surprise, then, that life insurance companies are very interested in the amount of alcohol you assume when it comes to applying for a life insurance policy.
Social Drinking vs. Heavy Drinking
Social drinking will likely not affect your life insurance rates; however, drinking as little as two alcoholic drinks daily can take you out of the running for preferred rates. Any more than two alcoholic drinks daily can even knock you of standard rates. In short, the more alcohol you drink on a daily basis, the better the likelihood of paying much, much more in premiums than non-drinkers.
And, depending on the severity of alcohol abuse, an insurer could potentially deny a life insurance application altogether. If your medical history shows alcohol abuse, you can expect to be denied for a life insurance policy.
Many times, life insurance rates will offer drinkers a rated policy, which essentially means that the applicant must pay additional premiums, which could end up costing them big.
Your Life Insurance Medical Exam
Don’t expect to hide your alcohol use from your life insurer, as the typical life insurance policy requires a medical exam, which will likely include both blood and urine tests. The insurer may also ask for a liver function test if you have a history of alcohol abuse; this test may show liver disease or cirrhosis of the liver.
In addition, if you have a DUI arrest on your driving record, you can expect higher life insurance premiums. Any type of drunken driving arrest or conviction on your record raises a red flag with insurance companies, thereby resulting in higher life insurance premiums or even denial of life insurance benefits.
