Drinkers being penalised by insurance firms

Anyone that life or health insurance cover will know that there are a number of factors that can affect the amount that you have to pay for your cover, such as your age, your medical history, your smoking habits, and weight, and various other factors. According to a recent report another big thing that insurance providers are now looking at when deciding on whether to offer health or life cover to an applicant and how much to charge is the amount that the person drinks in terms of alcohol.

With binge drinking on the rise, and increasing concern over alcohol abuse, insurance firms are now coming down hard on drinkers, and some are finding that their insurance premiums are rocketing as a result of their drinking habits. Those found to be regularly consuming over the recommended alcohol intake levels are set to see their insurance premiums double in some cases, which could lead to a huge rise in costs at a time when many are trying to cut down on their outgoings.

According to some industry officials the group most likely to be affected by this increased stringency from insurance firms are middle class middle aged people, many of whom tend to drink more than the recommended alcohol levels on a regular basis. One insurance industry official said: ‘Heavy drinkers are more likely to suffer from liver disease, high blood pressure and strokes. They are also more likely to have an accident, possibly fall into the road, and they are more likely to be involved in a fight.’

Whilst some people thinking about applying for insurance cover may decide to lie about how much they drink in order to keep costs down there are also warnings that the insurance firms can and may check medical notes with doctors in order to see whether the applicant is being truthful about the amount that they drink. If applicants or policyholders are found to be lying about their alcohol intake as well as about other factors such as their smoking habits or medical history then the insurance company will be able to declare the policy null and void, even if the information is discovered at a time when the policyholder is trying to make a claim on the policy.

Consumers are advised, therefore, to be totally truthful on their insurance applications forms rather than telling lies in order to cut their premiums. Those that are not truthful risk saving a few pounds a month on their premiums only to find that if they do need to claim their insurance cover is not valid because of the lies, which means that all money that they have paid in premiums will have been completely wasted. Instead, those wishing to cut down on the cost of cover should consider making changes to their lifestyle in terms of smoking, drinking, and diet, and also shopping around and comparing policies with a range of providers.

Tags: telling lies, Insurance, drink, life insurance, middle class, health insurance cover, alcohol, insurance industry official