And, for drinkers whose fondness for a tipple runs into the 90 units a week, premiumsare likely to beloaded by some 300 per cent, although surprisingly they are not turned down outright and can still get cover at a price.
To be declined outright by most insurers they must be exceeding 98 units of alcohol per week!
While insurers can make life financially uncomfortable for regular, above average intake drinkers, users of the really hard stuff – Class A drugs such as cocaine and heroin – may find they cannot get life cover at all.
“Life cover firms have been really tightening up their act, and users of hard drugs such as cocaine or heroin will be declined outright for cover unless they have been clear for at least three years,” said Richard Brown, Moneynet’s chief executive.
“After the applicant has been ‘clean’ for the three years, most insurers willstill impose an additional 200 per cent loading – more or less the same criteria applied to someone who has previously had a heart attack,” he added.
“Another interesting point here is that habitual users of sleeping tablets can also be declined for cover until they have been clear for at least 3 years,” said Brown.
“Life companies now request applicants fill in their forms very assiduously, and payouts will be refused if the applicant is found not to have declared their drug or alcohol usage.”
Recreational cannabis or marijuana users are invariably accepted for life cover, although typically at smoker rates (see table). Smoker loading rates tend to be around 60 per cent,” he said.
“As with any financial product it is important that customers don’t take the first quote, as prices can vary significantly from one insurer to another. In addition, where someone has a particular problem such as drug or alcohol abuse or even a history of illness, some insurers may be more sympathetic than others and impose a lower loading,” added Brown.
Key Figures:
1 unit = half a pint of beer or a standard sized glass of wine, according to BMA (British Medical Association) classification
Life cover premium loading for male drinkers
42 units + = 50%
50 units + = 60%
70 units + =100%
80 units + =200%
90 units + =300%
£100,000 Level Term Cover over 20 years- Premiums Per month
Non-Smoker
Smoker
50%Loading*
100% Loading*
300% Loading*
Male Age 30
£ 7.50
£11.10
£16.65
£22.20
£ 44.40
Male Age 40
£12.67
£25.10
£37.65
£50.20
£100.40
Female Age 30
£ 7.50
£ 9.20
£13.80
£18.40
£ 36.80
Female Age 40
£10.11
£20.10
£30.15
£40.20
£ 80.40
