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Alcoholism life insurance, critical illness cover and income protection

The facts about getting life insurance with alcoholism

Life insurance applications for alcoholism life insurance will require you to provide insurance companies with your medical record. Insurance companies will often offer a recovering alcoholic an alcoholism life insurance policy with standard terms so long as there has been a significant period of time since alcohol dependency. If you have developed health problems related to your history of alcohol abuse, your alcoholism life insurance applications may be declined or offered at non-standard terms.

What does Alcoholism life insurance cost?

During any application for alcoholism life insurance, insurance companies will require access to your medical records. Some questions insurers may ask are:

  • When were you diagnosed with alcoholism?
  • What reasons were behind your alcohol abuse?
  • What amount of alcohol were you drinking?
  • Do you have any mental health issues or medical conditions related to your excess alcohol consumption?
  • What treatment have you undergone for your alcoholism (e.g. counselling, alcoholics anonymous)?

Your premiums for Alcoholism Life insurance will also depend on:

  • Sum assured (£’s)
  • Term of cover (years)
  • Type of policy (e.g. Family, Mortgage, Whole of Life etc.)

Alcoholism life insurance rates/ratings

If you apply for life insurance as a recovering alcoholic, you could receive higher insurance quotes for alcoholism life insurance. If it has been a significant period of time since your excess alcohol consumption and have no additional health issues you could obtain alcoholism life insurance at standard rates. Related medical conditions and continued excess alcohol consumption will cause your alcoholism life insurance quotes to increase.

Percentage (%) loading for Alcoholism life insurance

If percentage loading is added to your alcoholism life insurance policy, you will see your monthly premiums raised by a set percentage. Life insurance companies do this if they believe there is an additional risk of claim, and you are likely to receive loading to your alcoholism life insurance if you have developed related medical conditions. It is important to note that this will vary between insurance companies and there are providers who can accommodate additional risk (e.g. 250%, 400%)

EXAMPLE:

Basic premium
% loading
Final premium
£20.00 50% £30.00
£20.00 100% £40.00
£20.00 150% £50.00
£20.00 200% £60.00
£20.00 250% £70.00

Per mille loadings for Alcoholism life insurance

‘Per mille loading’ is unlikely to be added to your alcoholism life insurance as it is rarely used and often only relevant to very severe medical conditions. ‘Per mille loading’ will raise monthly premiums by a set amount (e.g. £1, £2) per thousand £’s of cover applied for. This type of loading is very flexibly and can be applied to a alcoholism life insurance policy for varying periods of time.

As a history of alcohol abuse can often lead to additional mental and medical conditions, you may find an ‘exclusion’ added to your alcoholism life insurance policy. These ‘exclusions’ would prevent you from filing any claim on your alcoholism life insurance for related health issues. It is important to note that any ‘exclusion’ can prevent you from accessing additional benefits such as Total and Permanent Disability, Waiver of Premium or Guaranteed Insurability.

Without knowing your personal circumstances, we cannot tell you how much alcoholism life insurance you should apply for. However, there are some guidelines you can follow when deciding on an amount. It’s important to note that any insurance quotes for alcoholism life insurance could change after underwriting.

  • The amount left to pay on your mortgage.
  • Any outstanding debt (e.g. Loans, second charge, credit cards and other)
  • Dependants
  • Spouse or Partner
  • Annual Income (after Tax)
  • Any financial assets (e.g. car, house, business etc.)

If you feel unsure or require more information to decide how much alcoholism life insurance you will require to secure your family and home, see our Iam Insured alcoholism life insurance calculator [LINK].

A Critical illness alcoholism life insurance policy will provide policy holders with a tax-free lump sum should they become unable to work. Any alcoholism life insurance policy, including critical illness, will require insurance companies assessing your medical records. Some recovering alcoholics may find ‘exclusions’ added to their critical illness insurance policy or premium loading. Take these factors into account when deciding on the amount of critical illness alcoholism life insurance you may need:

  • Your annual Income (after Tax)
  • Mortgage/rental payments (annual)
  • Cost of living (annual)
  • Any other potential costs (e.g. medical treatment or adaptations)

Like critical illness, income protection will provide financial help if you become unable to work. However, unlike critical illness, an income protection alcoholism life insurance policy will provide you with monthly payments. As with all alcoholism life insurance policies, insurance companies will need to view your medical records before providing an insurance quote. If there has been a long period of time since your alcohol abuse and there are no related medical conditions, you should be able to obtain standard insurance quotes for income protection. However, if your history of alcohol abuse is more recent or you have developed additional health issues your alcoholism life insurance income protection may include ‘exclusions and/or premium loading. The amount of income protection alcoholism life insurance you need will depend upon:

  • Monthly income (after tax)
  • Mortgage/rent payments
  • Debts (other)
  • Cost of living

Which insurance companies offer Alcoholism life insurance?

For many recovering alcoholics, alcoholism life insurance quotes should be obtainable with standard terms. If your history of alcohol abuse is more recent, or you have developed related medical conditions your alcoholism life insurance policy may contain health issue ‘exclusions’ or loading. If you are having trouble finding an appropriate alcoholism life insurance policy, you may benefit from speaking with an alcoholism life insurance specialist.

Iam insured are authorised and regulated by the financial conduct authority and are registered in England and Wales.  To speak with one of expert alcoholism life insurance advisors, contact us now on [TELE] or send us an email [EMAIL].

Alcoholism critical illness cover and income protection providers

Obtaining critical illness cover or income protection as a recovering alcoholic may be overwhelming, but it is possible in most cases you could receive an alcoholism life insurance policy on standard terms. In more serious cases you could have premium loading or ‘exclusion’ added to your critical illness or income protection alcoholism life insurance policy. If you are finding it hard to obtain critical illness and income protection alcoholism life insurance, don’t hesitate to contact Iam Insured for specialist advice.

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