Put Down That Drink and Save on Life Insurance!

Alcohol abuse significantly reduces your life expectancy, so it makes sense that heavy drinkers pay higher life insurance premiums than those who drink moderately. Heavy drinking can cause strokes, heart problems, dementia, liver disease, and a variety of gastrointestinal maladies. Given this increased risk of serious health problems with heavy drinkers, it’s not surprising that life insurance companies will ask about your alcohol intake on your policy application. If you have more than two drinks per day, you will not qualify for “preferred” rates, and having more than four drinks per day will disqualify you from “standard” rates. After that, you’ll have to purchase a “rated” policy, which means you’ll be charged an extra premium for an added risk factor. In this post, we’ll explain more about how drinking impacts your life insurance rates.

Red Flags for Life Insurers

Aside from your self-report on your application, life insurers have several ways to identify alcohol abusers. First, your life insurer will likely find out about your excessive alcohol consumption if it is noted anywhere in your medical records. Secondly, insurers will also run a liver function test on the blood sample they obtain during your medical exam for life insurance. Known as a GGT, the liver function test measures the liver’s irritation. People who drink heavily will have elevated liver function, but those who drink in moderation likely will not. However, elevated levels of liver enzymes don’t automatically translate into higher rates. You might have elevated liver function due to some other medical problem or even from taking Ibuprofen. To determine if the elevated levels are alcohol related, the insurer will run an alcohol marker. If the results indicate that the irritation is related to alcohol, your application will be declined. If the irritation is related to other medical issues, you may still be able to qualify for standard rates.

DUIs and Life Insurance Rates

Recent convictions for drunk driving will also result in higher life insurance rates. The more time that passes since your conviction, the better your rates will get. Usually, two or three years after a DUI, you can qualify for standard rates. After five years since the conviction, you may be able to qualify for preferred rates if your health is up to par. Multiple drunk driving violations may make life insurance unattainable.

For Those in Recovery

If you used to have an alcohol problem but have stopped drinking, you still might have to pay higher life insurance premiums. Even after the successful completion of a rehabilitation program and months of sobriety, you probably won’t be able to get life insurance until you’ve been in recovery for more than two years. After five years, you might be able to qualify for standard rates, but preferred rates could require as much as 10-20 years of sobriety.

Additional Resources

• It Pays to Avoid a Speeding Ticket
• Can a DUI or traffic ticket affect auto insurance rates?