With the growing living expenses in the present times, people must stay mindful of their health and ensure their financial security. Drinking and smoking are common habits of individuals, particularly in today's generation. But, if you are someone who is planning to purchase a life insurance policy to secure your family's future, your alcohol consumption habit can leave you in a difficult position. Know more about the impact of alcohol on life insurance and how your habit can become a key factor for insurance providers to determine the premium; keep reading below.
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You have the perfect life insurance policy to protect your family's financial future. You have filled out the form and prepared to apply for it, and suddenly, the insurance provider asks, " How much alcohol do you consume?"
Well, this situation is common as life insurance providers take your habit of alcohol consumption very seriously while evaluating the application. The reasons why this habit is considered for your life insurance policy are discussed below.
Individuals who practise consuming alcohol regularly tend to face chronic health issues ranging from liver to heart disease to even cancer. All these severe health issues eventually result in reduced life expectancy. Therefore, life insurance companies need to evaluate such medical conditions to assess the potential expenses and set the premiums accordingly.
Life insurance providers also consider how people with regular alcohol consumption are more prone towards encountering accidents. Excessive consumption of alcohol increases the chances of getting into accidents that lead to huge medical expenses or even death in certain cases.
The undeniable effects (healthcare issues/ accidents) of consuming alcohol are directly correlated to the expenditures that your life insurance company will provide. Hence, they must consider the alcohol consumption of the policyholder, which helps them to conclude their liabilities.
The frequency of your alcohol intake, along with the kind of medical backup you have, will be noted during the underwriting of the policy for you. It will also be considered while setting your monthly premiums and related tasks.
Regular consumption of alcohol directly impacts the several points associated with your life insurance policy, which include the following:
Life insurance providers tend to conduct comprehensive health checkups and related tests to ensure whether or not you are fit enough to buy a life insurance policy. Based on your existing health conditions and the frequency of consuming alcohol, your monthly premiums will be set.
Likewise, these premiums are higher than usual plans because of the increased liability on the insurer’s shoulders.
Whenever a policyholder starts consuming alcohol in excess or more than what he has depicted at the time of issuing the policy, the insurance provider holds the right to reject the claim.
Factors like these are usually mentioned in the terms and conditions, based on which insurance providers are not bound to approve the claims of the nominees when the demise of the policyholder is due to excessive alcohol consumption.
There are already high liabilities on the shoulders of the insurance providers, and thus, they tend to avoid any added liability. Therefore, when an insurance company comes to know that your alcohol consumption is quite frequent or beyond normal, they might refuse to issue your life insurance policy. They require clear improvement and valid backing from medical practitioners before accepting your application.
The brief answer to this question is yes. People who consume alcohol are more prone to severe health issues than usual, and hence, having a life insurance policy is a must for them.
With excessive consumption of alcohol, your life expectancy can be reduced, leaving your family with a sudden financial burden. Therefore, your nominees can claim the sum assured that they can use it during potential emergencies.
Regular alcohol consumption exposes you to numerous critical health issues and an increased risk of death. A life insurance policy with riders like critical illness, terminal illness, etc., can help you financially, enabling you to access effective medical treatment on time. Although improving the quality of life largely depends on your lifestyle, life insurance plans can be your financial support and encourage healthier choices.
To wrap it up, opting for a life insurance policy is no less than a wise step to ensure your family's financial security in your absence. The impact of alcohol consumption on insurance premiums is primarily due to the heightened risks of health issues associated with it. Therefore, consider improving your lifestyle starting today.
Given below are the commonly asked questions regarding the impact of alcohol on life insurance:
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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