| Alcohol is regarded as an antiseptic or a preservative | | | | easy that you do it many times! But let us assume that |
| in some cases, but its effect on life insurance costs | | | | like the rest of us, you are the exception to the rule. |
| can be anything but benign. You will almost certainly be | | | | You will live to a ripe old age, give up drinking when |
| asked for information about your alcohol consumption | | | | you retire, and no one will be any wiser. Sad to say |
| when you apply for life insurance, and it is likely that | | | | you may be almost correct, but the chances are that |
| NHS guidelines will be consulted to determine whether | | | | someone will know what you did. |
| you within the safe level. If your drinking is deemed to | | | | If you are subjected to a post-mortem examination, |
| have reached the 'potentially dangerous' bracket, the | | | | the evidence will be there, and there are likely to be |
| cost of your policy may come as a considerable | | | | medical experts who can put a time frame on your |
| shock. | | | | drinking. They will be able to say if you were drinking |
| Medical practitioners provide information to insurers | | | | heavily before you took out your life insurance, and if |
| regarding the health problems caused by excessive | | | | you were and you had failed to declare this fact they |
| drinking, for consideration when premiums are | | | | will recommend to the insurer that there should be no |
| calculated. Many other factors have to be brought into | | | | payout, on the basis of failure to disclose full and |
| life insurance risk assessment, but with the Drink | | | | relevant facts. |
| Aware Trust along with the British Chiropractic | | | | Non disclosure of a relevant fact is anathema to |
| Association finding that 66% of the population admit to | | | | insurance companies, and the opinion of the |
| excessive drinking once a week at least, the statistics | | | | Association of British Insurers supports this view. Their |
| have to be taken very seriously. | | | | spokesman has said that inaccuracies in the |
| Don't want to admit it? Not very surprising really, but it | | | | information supplied on the application form may |
| would be foolish to try to keep the information from a | | | | render the policy invalid in the event of a claim. |
| potential insurer. Remember that all insurance policies | | | | If however the information was not disclosed because |
| will carry a penalty relating to falsified or withheld | | | | at the time of taking out the policy the alcohol problem |
| information; if the concealed facts are of sufficient | | | | did not exist but has developed since, a payout may |
| significance the policy may be declared invalid. | | | | be accepted as justifiable. The spokesman said that |
| You may think that your insurers will have no way of | | | | policies are based on the circumstances at the time |
| knowing whether you were a drinker or not, after your | | | | that the policy is taken out; subsequent changes are |
| death. Even if they could establish that you did enjoy | | | | not relevant unless specifically covered i.e. participation |
| alcoholic drinks, how could they know whether the | | | | in certain dangerous sports may be stated to be |
| extent of your drinking was excessive? | | | | unacceptable. If this statement is written into the policy |
| It may or may not depend on how heavily you were | | | | conditions, then it would apply even if the sport was |
| drinking and for how long. | | | | only taken up after the policy was agreed. |
| There is however no point in deciding that you will cut | | | | Depending on the approach adopted by your |
| down in later life to hide the fact. This approach gives | | | | insurance company, you are likely to be asked about |
| rise to several questions. How do you know that you | | | | your weekly consumption of units of alcohol, and the |
| are going to get any 'later life' - has some genie of the | | | | level of your premiums will be adjusted to take |
| bottle given you a firm date for your departure? Don't | | | | account of your answer. |
| forget that the sooner you go, the greater the degree | | | | The result of these and other lifestyle questions could |
| to which your family will depend on your insurance. | | | | affect the amount you pay out in premiums for many |
| If you try cutting down, how successful will you be? | | | | years - and presumably you don't get the alcohol free |
| Perhaps it would be akin to giving up smoking - so | | | | of charge either. |