Alcohol Use and Life Insurance--How Drinking Can Affect Your Rates

When you apply for life insurance, no matter what kind it is, you will be asked two questions related to alcohol consumption:

• How much alcohol do you drink and how regularly
• Have you ever been convicted of a DUI

Your answers to these questions two alcohol related questions will affect how much you pay for life insurance.  That said, underwriting for life insuance is more of an art than a science, and there is no consensus or consistency among various life insurance companies on how to deal with the answer to either of these two questions, but especially the first.

Yes, drinking to excess is associated with shorter life expectance, but there is no agreement on what is excessive.  Is it one drink a day, or two, or is it 6?  There is also the point to consider that light drinking has been known to increase life expectancy by a few years and cut down on both heart attack and stroke.

Of course, having a DUI on your record, unless it was many, many years ago is likely to disqualify you for the best life insurance rating class.  If it was recent, and if there have been multiple DUIs in recent years you will be required to pay even more, all other risk factors notwithstanding.

Also, be sure to be as accurate as possible on your life insurance application about however much you do drink because your policy can easily be rescinded if any inaccuracies are discovered (often times after a claim is made).

Will my blood be tested for alcohol when I apply for life insurance?

Not exactly sinc alcohol does not usually stay in the blood for more than 24 hours (hopefully you aren't drinking wheh the nurse comes by to do the paramed exam!).  But alcohol use can be suggested by the presence of elevated liver enzymes which is something that is tested for.  Keep in mind that before you can be issued a life insurance policy (except when it is no-exam life insurance), you will be required to submit a blood sample.  Elevated liver enzymes can be an indicator of more than occasional drinking.  If you are found to have elevated liver enzymes, several things may happen as a result:

• You will not be issued a policy
• You will be issued a policy but you will be required to pay extra premium
• Your application will be posponed until the cause of the problem can be pinpinted

Here are two more important points:

1. There are over 100 companies in the U.S. that sell life insurance.  Most of these are good, solid companies with excellent financial ratings.  Shopping 100 companies obviously is a bit of a chore, (and not recommended) but the point is that you have options.  Don't assume that the underwriting from one company to the next will be identical.  Rates vary widely, and,
2. If you end up with a higher-than-expected life insurance rate because of something alcohol related remember that your rates can go down over time if you are able to furnish evidence that you have addressed the problem

If you drink moderately, (a glass of wine a day, perhaps)  this is unlikely to affect your rates with most insurers unless you have elevated liver enzymes.  If your alcohol consumption is more than moderate, with a little dilligence and hard work, it should be possible to get an excellent rate on life insurance if this is your only issue.