It’s pretty much a given that if you’re more than a social drinker, someone who maybe likes to party and drink a little more than you should, that it could have an impact on your health and your health insurance. Did you know that excessive drinking could also impact your life insurances rates?
To life insurance companies, and in all reality, there is a huge difference between those who occasionally enjoy a glass of wine or beer and those who tip the bottle back until the last drop and go back for more. No offense is meant by this statement. Excessive drinking is a serious problem that is admittedly difficult to overcome. It’s simply important that you know if you have this problem, your life insurance company will want to know, will find out and it could adversely impact the premiums you pay every month.
Why Drinking Impacts the Price
Heavy drinking impacts your life expectancy. In 2008, the CDC announced that a lifestyle of heavy drinking is now considered the third leading cause of death in the U.S. chronic alcohol abuse can lead to serious medical conditions including physical conditions such as cardiovascular disease, cirrhosis of the liver, stroke, gastrointestinal problems and many other physical ailments. it could also negatively impact you mental and emotional health as well.
When you apply for a life insurance policy, they will want to know your drinking habits. Frankly, you might as well be honest. It can’t be hidden. Should they not find out about it beforehand, if you death is found to be due to anything related to alcohol consumption, the insurance claim could be disputed or altogether denied.
On the life insurance application, admitting to more than 2 drinks per day will not get you a preferred rate. 3 or 4 will even bar you from a standard rate, therefore you will wind up paying much more than you probably want to.
Don’t Try to Hide It.
Excessive alcohol use is likely to be noted in your medical records, even if only suspected. Most doctors do not simply suspect this without good reason. Your insurance company will look at this, your application and will also consider other factors. If you have an alcohol related condition at the time of application, if you have been in treatment or are currently in treatment and if you have any DUIs or other alcohol related violations and how long it has been since you last had one. All of these factors could impact your rates.
If you tried to hide your alcohol use, tough luck. Even if you were not honest on your application, the insurance company can still find out from your medical records and background check. Either way, you will wind up with a higher rate, a “rated” policy (which carries an additional premium) or an outright denial.
Insuring Your Life in Spite of Alcohol Problems
The truth is, it can be very difficult to obtain life insurance if you are a heavy drinker. You are very high risk. The insurance company knows you are a liability and statistically, your death is likely to be sooner rather than later. Therefore, you are looking at paying a higher price or being completely denied. If the company finds out you lied about your alcohol consumption after the policy is in effect, they could cancel it. If you can get yourself into a program and sober up you have a better chance of obtaining life insurance. It still won’t be easy. Some life insurance companies might postpone a decision to insure you for up to 2 years after treatment to ensure sobriety and possibly improved health.
It really boils down to this fact; if life insurance is a concern for you, and you want to prepare yourself and your family for the inevitable, excessive drinking could get in the way. You might not have the option for life insurance and if you do, you’re going to pay more. Your best bet is to put the glass or bottle down and walk away, even if it means rehab and regular support, regaining your health and the option to protect the future of your family.
