Over the past couple of months, we have been identifying various factors (called underwriting factors) that may have an impact on your life insurance costs. Last month we discussed how underwriting factors such as asthma and other breathing disorders can affect your life insurance costs, especially if you have any combination of more than one factor. The previous month touched on how your weight, cholesterol and blood pressure can affect your rates. This month's article will focus on how alcohol can impact your costs. Check back next month for the final segment in this series.

Alcohol Abuse
Alcohol's impact on your life insurance costs is a little harder to determine than some other underwriting factors. First of all, many people may not consider themselves alcoholics or even heavy drinkers, and therefore will not disclose their drinking on the application. Also, while most insurance companies have a specific definition for an alcoholic, many don't clearly define a "heavy drinker." Both conditions carry the possibility of higher life insurance costs.

There are a few ways insurers usually find out whether your drinking is heavy enough to negatively influence your health. They start off by looking at your application. For example, on InsWeb's life insurance application, the first question that refers to alcohol asks whether you've been convicted for driving under the influence in the last five years. If you answer yes to this question, it is obviously a major red flag to insurers. (Keep in mind that the insurance company will find out, by looking at your driving record, if you answer no to this question but you have been convicted of driving under the influence.) Secondly, alcoholism, liver disease, and drug abuse are all listed under the medical conditions you must disclose on the application.

Another way insurers find out if your use of alcohol is negatively impacting your health is through your medical exam. Medical exams, which are used by insurers to evaluate your overall health, are always scheduled before your new life insurance policy takes effect. These medical exams usually include a blood test, and most insurers will screen for extremely elevated liver enzymes, which can signify heavy drinking (elevated levels of liver enzymes aren't always caused by alcohol, they can also be caused by certain illnesses and prescription drugs).

If you are an alcoholic, your costs are likely to be higher, and it is unlikely that you will qualify for special rates, let alone regular rates. However, if you are undergoing treatment and successfully combating your alcoholism, your rates can level out over time, especially if there has been no history of, or treatment for, alcohol abuse in over 10 years (in fact, if this is the case, you may even qualify for preferred rates). If you are considered a heavy drinker, but your liver enzyme levels are not too high and you've never been convicted for driving under the influence, you may notice no increase in your costs, especially if you shop around for coverage. If you have both a driving under the influence conviction and extremely elevated liver enzymes, your costs are likely to increase. Rates for alcoholics and heavy drinkers can vary significantly from company to company (some will not insure alcoholics at all), so it is especially important to compare quotes from multiple companies.

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