If you’re looking for a life insurance policy, you may be surprised to discover what can impact your life insurance cost. Alcohol use can play a major role in what you end up paying for coverage, especially if you have a history of excessive alcohol use.
Excessive alcohol consumption may cause a number of health and behavioral problems that increase your insurance company’s risk of insuring you and results in you paying a higher life insurance cost for your policy.
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Underwriting Alcohol for Life Insurance
When you apply for life insurance, underwriters review the complete application and all the records that go along with it. They then decide how much coverage and at what cost to offer the applicant, unless they decide to deny or post-pone the application.
In regards to alcohol, the underwriter will use medical records (especially those related to treatment for substance abuse and psychiatric illness), social profile, motor vehicle reports, laboratory results, and physical findings in order to assess the risk associated with excessive alcohol consumption. A blood test, carbohydrate deficient transferring (CDT), can sometimes be used in underwriting to identify those consuming excess alcohol.
The following is a list of complications from excessive alcohol consumption that are significant to life insurance underwriting:
- Cardiac: Atrial fibrillation, cardiomyopathy, hypertension
- Nervous system: Blackouts, seizures, delirium tremens (DTs), peripheral neuropathy, tremors, brain damage, psychosis, balance and gait impairments
- Gastrointestinal: Fatty liver, hepatitis, cirrhosis, pancreatitis, gastrointestinal bleeding (sometimes massive) due to gastritis, varices, and esophagitis, cancer, diarrhea
- Bone marrow: Abnormal blood counts including anemia
- Psychiatric and social: Depression, anxiety, suicide, violent behavior, marital/occupational/familial problems, abuse of other drugs as well as alcohol
- Miscellaneous: Aspiration pneumonia, accidents and trauma. Alcoholism is a primary, chronic disease with genetic, psycho-social, and environmental factors influencing its development and manifestations. The disease can be progressive and fatal. It is characterized by impaired control over drinking, preoccupation with the drug alcohol, use of alcohol despite adverse consequences, and distortions in thinking, most notably denial. Each of these symptoms may be continuous or periodic.
Life insurance underwriters also negatively rate for binge drinking and risky drinking. “Binge drinking” is defined as heavy drinking to the point of intoxication on a periodic basis. “Risky drinking” is more than 14 drinks per week or more than 4 per occasion, for men, and more than 7 drinks per week or more than 3 per occasion, for women.
If you are a moderate to heavy alcohol user or if you have a history of alcohol abuse, life insurance underwriters will typically request the following:
- Alcohol Questionnaire Form – This form will ask you a few questions such as:
- Have you ever been in any legal trouble?
- What is your current level of alcohol consumption?
- Do you currently participate in any groups such as Alcoholics Anonymous?
- Motor Vehicle Records – The underwriters will review your driving history to discover if there is a history of drunk-driving arrests or reckless driving.
- Attending Physician’s Statement – Examining your health report can unveil a number of alcohol abuse indicators. For example, a history of pancreatitis in a younger individual is highly indicative of heavy drinking.
Risk Factors and Life Insurance Cost
Besides the risks associated with excess alcohol intake, the underwriter also considers favorable historical items such as:
- active participation in Alcoholics Anonymous,
- voluntary initiation of treatment,
- single period of treatment or hospitalization,
- maintenance of stable family life,
- sustained employment,
- financial solvency, and
- good health without reports of violence or arrests.
If the individual is able to successfully stop drinking alcohol without relapse, after seven to ten years, the mortality rate approaches that of the general population.
See what you’d pay for life insurance
If you have a history of excessive alcohol consumption, you may be table rated. The table rating system typically means that your pricing for life insurance will be the Standard price plus 25% for every step down the table you are, Tables A-J or 1-10 depending on which format the insurance company uses.
John Smith is a 40-year-old risky drinker but has no other issues such as social, legal, or health problems and has no history of alcohol treatment. He applies for a 20-year $250,000 term policy and the underwriters rate him Table C. The Standard premium of this policy is $36, but because he is table rated we calculate his monthly premium costs to be $63 (36 + 75%).
Table ratings depend on:
- Severity of the excess
- Severity of associated complications
- Evidence of alcohol dependence and/or withdrawal
- Legal problems related to alcohol such as DUIs
- Abuse of other drugs
- Number of relapses
- Current participation in groups such as Alcoholics Anonymous
When applying for life insurance with a history of alcohol abuse, working with an independent broker like Quotacy that has contracts with multiple life insurance companies is your best bet towards getting approved for coverage at a reasonable price. Not all life insurance companies underwrite alcohol the same. For example, while one insurance company is open to offering a Preferred rate class to an applicant who had a DWI five years ago, another insurance company won’t offer Preferred to that same applicant until after seven years has past.
Quotacy has years of experience getting clients life insurance coverage, including people with alcohol abuse history. Our in-house underwriter knows how to navigate each individual’s health history and which life insurance company would be the best option for your individual case.
If you are looking to get an idea on the cost of life insurance, it costs nothing to run a quote and apply online. You will have a dedicated Quotacy agent shop your case with our top-rated life insurance companies to ensure you receive the best possible price.
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Note: Life insurance quotes used in this article accurate as of August 23, 2022. These are only estimates and your life insurance costs may be higher or lower.
My husband is 45 and healthy aside from a high CDT level on his medical exam and he continues to be denied life insurance. He had a DUI as a college kid but has never had any other incident – he is from an Irish Catholic family with a strong drinking culture and tolerance for alcohol. He eats healthy and exercises but just drinks more beer and wine (and occasional cocktail) than the average male. Need help identifying insurers.
Hey MC, sorry to hear your husband is struggling to find coverage. High CDT levels can be tricky. Have you tried applying through a life insurance broker? A broker will shop across the insurers for you so you don’t need to keep applying over and over. I can’t guarantee we’ll be able to find your husband coverage, but here at Quotacy we have access to over 25 of the nation’s top-rated insurers and will exhaust every option to try to help your husband get coverage. Feel free to start here by running a quote and then apply right online. A Quotacy agent will keep you posted as we shop your case around.