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The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
It entirely depends on your drinking habits.
If you are a social drinker, your insurer may either accept your application or offer you a term policy with a higher premium
Your application will be rejected if you’ve alcohol dependence currently or had it less than ~2 years ago (depending on your insurer)
What is alcohol dependence? Well, it is a chronic condition in which you crave alcohol, can't control your drinking habits and experience withdrawal symptoms when you stop drinking.
Based on your alcohol dependence level, your insurer may also ask for a liver function test.
So, sober up for the sake of your health and your term insurance application!
If you drink alcohol, it will affect your health. This means it will also affect your term insurance application.
See, when you apply for a term plan, the insurer will ask you about your health conditions to understand how much risk is involved in accepting your application.
If you drink occasionally and your health is not affected by that, the insurer may accept your plan.
But if your drinking habit has any negative impact on your health, you may get a term plan with a higher premium (don’t give in to peer pressure, being a teetotaller has its advantages too! ).
But if you have alcohol dependence aka you are addicted to alcohol now or had an alcohol dependence less than or ~2 years ago, you may be denied term insurance.
Pro-tip: Always disclose your drinking habits to your insurer.
It depends. Your claim may be denied if:
You pass away from drunk driving or from being under the influence of alcohol
You lie on your term insurance application about anything, including your drinking habits or hide your habit, and your death is caused by alcohol-related health complications
That depends. Did you develop alcohol dependence in the past i.e. developed a condition where you craved alcohol and always experienced withdrawal symptoms when you stop drinking?
Well, if you did it less than ~2 years ago, you may be denied term insurance. Otherwise, if the insurer is satisfied with your health assessment, you may be offered a term insurance policy, with or without a premium hike.
But remember, it totally varies from insurer to insurer so it’s best to check with them and share every information about your past drinking habits truthfully.
Yes, your term insurance premium may increase if you inform the insurer about your drinking habits.
See, drinking alcohol, just like any drug habits such as use of marijuana has a direct impact on your term plan application. That’s because it can cause some health problems which in turn can increase your mortality risk, i.e. the chances of passing away from health problems. So your insurer may find you riskier to insure than a typical non-drinker while offering a term plan.
If you are an occasional drinker, then depending on your health assessment, your insurer may increase the premiums for your term insurance policy.
Having said this, always ensure that you disclose your drinking habits to your insurer, regardless of premium hike. Otherwise your nominee(s) can face claim rejection later on.
Depending on your drinking habits, your term insurer may put your application on hold. If that happens, you should connect with your insurer and know why your application has been kept on hold. Based on that, you can take the appropriate steps to get your term plan accepted.
No, it is not all advisable. Withholding information can lead to claim rejection later on. No matter what, you must always provide all the necessary information that your insurer asks for at the application stage.
It’s better to pay higher premiums than getting a claim rejected, resulting in your family facing a financial crisis in your absence, just because you were worried about paying a higher premium.
Hiding this information at this stage can result in claim rejection for your term insurance nominee later on.
While you could have gotten term insurance cheaper when you were young, if you’re in your 40s and want to buy it, you can still save money by following these tips:
Cover yourself only till your retirement to avoid paying higher premiums for an unnecessarily long policy duration. Find out why you should stay covered only till you retire.
Don’t overinsure. Choose a life cover that will replace your income till you earn. Higher the cover, higher the premium. Only keep it as much as it is required to keep your family financially secure after you pass away.
Add only those riders that are essential. Otherwise, your premium will become more expensive.
Choose a premium payment term as per your convenience. Depending on your cash flows, opt for single, regular or, limited pay.
If you know what you need to buy, you can buy a term policy online. Term insurance plans can be 5-10% cheaper when bought online.
Compare term plans from different insurers to choose the best premium rate and policy benefits.
Check out the KlarifyLife Term Guide to understand your exact term insurance needs.
Well, that’s not advisable. See, if one insurer has put your term plan application on hold because of your drinking habits, chances are others will do it too.
Instead, talk to your insurer and get to know why your application has been postponed. Based on that conversation, you can plan the way forward.
Talk to a doctor or enrol into an alcohol de-addiction treatment if required.
Focus on improving your health condition. You may have to quit drinking completely in order to achieve this
Then reapply after the waiting period suggested by the insurer
Your term plan application may get rejected because of some red flags in your health assessment caused by your drinking habits.
If that happens, then it is highly unlikely you will get a term plan from another insurer as well.
You should take care of yourself and focus on getting better so that you can re-apply after the suggested waiting period.
Remember, this decision will vary from insurer to insurer.
No, you don’t have to inform the insurer about this newly acquired habit after you buy the plan. But if you are planning to buy a rider after you have bought your term plan, you need to declare your drinking habits then.
For example, say you want to buy a critical illness rider, one year after buying a term insurance plan. Then you’d have to disclose your drinking habits to your insurer because that information will help them understand your health condition and assess whether or not to give you the rider on the basis of that information. But this varies from insurer to insurer.
But remember, you have to inform your life insurance company about your drinking habits at the time of term plan application i.e. before you buy the plan. This is absolutely non-negotiable.
It is not required to inform your insurer if you develop a critical illness after you buy a term plan. But we advise you that you still do.
The reason is that depending on your condition, you may be eligible for rider benefits (if you have bought one). For example, if you’re suffering from a critical illness and have bought the critical illness rider already, you may get the critical illness cover (advanced payout) from it.
Depending on how dependent you are on alcohol, your insurer may tell you to take additional medical tests. For example, depending on your alcohol dependence level, your insurer may also ask for a liver function test.