How Alcohol Consumption Affects Life Insurance Rates
How Alcohol Consumption Affects Life Insurance Rates Any type of health problem will cause your rate to be higher than normal. Last updated on January 17th, 2019
When applying for a life insurance policy you need to meet all of the necessary requirements. One of the main requirements is a medical exam. This exam is used to detect health any problems and may include your alcohol usage.
A typical exam is performed by a blood test or a swab from inside the mouth. A test of the swab or blood are used to detect any health issues. If you have alcohol abuse issues, they will are detected with this test.
The use of alcohol when applying for a life insurance policy is not typically a big issue when consumed in moderation. This means not more than two drinks per day. If you are a heavy drinker, the results of a blood test may detect cirrhosis of the liver. This is a risk factor that will cause your premium to increase or that will cause your application to be denied.
One of the questions on an application for life insurance is your alcohol usage. If you appear to partake in more than social drinking, your rate will be negatively affected. Life insurance companies will apply a preferred rate to applicants that are in good health. Any perceived health issues will result in standard or non-preferred rates to be applied to your policy. If you are not a heavy drinker, the result of a blood or urine test may show abnormalities related to liver function. Abnormalities associated with liver function will suggest to a life insurance underwriter that a problem exists. Any type of health problem will cause your rate to be higher than normal.
This can lead to a policy that is specifically rated because of a specific risk factor. Further information may be needed from your doctor to complete the underwriting process for your application.
Being convicted of drunk driving or having a DUI is a red flag on a policy for life insurance. When you indicate a conviction for a DUI your application may be declined. If you are offered a policy, the cost is going to reflect your high-risk status. However, lying on your application will lead to cancellation and a return of any premium that was paid for the policy.
Even with red flags related to alcohol usage there are various ways to lower your premium. If you have fees for your policy that are in addition to the premium, these may go away over time. The best way for you to lower your premium for life insurance is to be in good health. If you can curb your drinking, any health issues you have can be reversed.
Check your liver enzymes on a regular basis if you are in a high-risk category because of alcohol usage problems. If you can show that your liver enzymes are returning to normal levels, any risk factor that is associated with your policy may be removed. Compare a quote from multiple life insurance companies to see which policy offers you the best price for the required benefit amount.
The use of alcohol may have varying affects on life insurance rates. When the need for life insurance is important you need to assess your lifestyle habits. Your other option is to find all of the options that are available to lower the cost of a life insurance policy.