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Alcohol and Life Insurance: Will Drinking Affect My Insurance Policy?

02-08-2022 |

Consuming alcohol by itself is not a bad habit. It is only when the consumption becomes excessive that alcohol starts posing problems, including your life eligibility insurance. The question of how much alcohol is acceptable for a life insurer to issue a life insurance policy varies from insurer to insurer.

But many insurers make clear claims that they will not issue any life insurance plans or accept any insurance claims if the buyer/ policyholder consumes alcohol in excess. But how much alcohol intake is acceptable, and what is the relation between life insurance and alcohol consumption. Read on to find out.


Do Term and Life Insurance Plans Cover Death Due to Alcohol?


The purpose of life insurance plans is to provide financial security to the family members of the breadwinner or income earner. They do this in the form of a monetary death benefit given to the chosen family members on the unforeseen death of the policyholder. Life insurance plans cover many instances of death.


What are the Effects of Life Insurance Alcohol Consumption?


  • High insurance premiums

    Insurance providers carry out comprehensive medical check-ups and conduct tests to see whether you are fit to buy life insurance. Depending on your existing health and the prevalence of any life-threatening habits, the insurer fixes your premiums. If the insurance provider confirms that your alcohol intake is beyond the permissible limit, you automatically have to pay high insurance premiums.

    The high premium rates are due to the increased liability, which falls on the insurer’s shoulders. The increased onus is because alcohol use beyond the permissible limit drastically reduces one’s life expectancy and brings on a slew of health issues.

  • Refusal to issue life insurance plans.

    If the insurer sees that your life insurance alcohol consumption is beyond a normal or intermittent amount, they might even refuse to issue the life insurance policy altogether. There is already a high financial onus on insurance companies to cover the life and other eventualities of millions of customers.

    Insurance companies look to avoid any added liability. And excessive alcohol consumption puts you on the radar as a risk insured. For this reason, insurers might outrightly reject your life insurance application until they see an improvement with valid backing from a medical professional and re-testing/ medical assessments.

  • Insurance claim rejection

    If, by chance, you start to consume alcohol in excess and your insurer becomes aware of this habit, there are chances of your life insurance policy getting rejected if the need ever arises. Even if the life insurance policy was issued, it does not bar you from the terms and conditions of the insurer levied in the first place.

    So, in the eventuality of your unfortunate demise due to reasons like death due to rash driving under the influence of alcohol, death due to intoxication, or death due to any other alcohol-use-related reason, the insurance company can reject the insurance claim filed by your nominees. They can refuse to pay the insurance payout under these circumstances.


What is the Permissible Alcohol Consumption Life Insurance Intake?  

Every insurer has different rules regarding the use and intake of alcohol. But the permissible life insurance alcohol limitation is already fixed by the Insurance Regulatory and Development Authority of India (IRDAI).



What If I Start Drinking After Taking Term/ Life Insurance Plans?

If you are someone who is not a habitual drinker but becomes one after buying a life insurance plan, then it is not too late to try and make amends with your insurer. To prevent the possibility of an insurance claim rejection and the forfeiture of benefits, you will have to take some steps to show your insurance provider that you have left the excessive drinking behind for good. These include:

  • Taking active steps to bring alcohol consumption within the permissible range like working out, eating healthy, engaging in productive activities/ hobbies
  • Joining a rehab group/ centre for group assistance to reduce alcohol intake
  • Showing proof from a qualified medical professional of your physical and mental health improvement after reducing alcohol intake
  • Clearing any pending criminal cases of driving under alcohol influence against you
  • Submitting any other proof/ undergoing re-medical assessments as requested by the insurer


To Conclude


Like anything else in life, something done beyond moderation leads to harmful consequences. The same applies to consuming alcohol. As long as you drink in moderation and occasionally, you have nothing to worry about. Check out Tata AIA life insurance to get suitable insurance plans as per your needs and requirements. 



L&C/Advt/2022/Jul/1709

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Looking to get a new plan? 

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+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), Tata AIA Life Insurance is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Frequently Asked Questions

Can habitual drinkers get life insurance?

It depends on the life insurance company in question. Some insurers give life insurance to habitual drinkers but charge more premiums. Some refuse to issue life insurance plans at all, while others request the buyer to reduce their alcohol intake to the permissible limit.

Can your family/ nominees face the consequences of your drinking habits?

Yes, your family faces the consequences of your drinking habits. After all, most life insurance is for their benefit and security. And they stand to lose out on those benefits if you drink alcohol excessively and the insurer rejects your insurance claim.

Disclaimers

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

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