Impact of Alcohol on Health Insurance Premiums

Posted on: Aug 31, 2023 | | Written by:

Impact of Alcohol on Health Insurance Premiums

Published on August 29, 2023. EST READ TIME: 3 MIN

In today's times when healthcare costs are increasing, staying covered under an adequate health insurance policy can save you from financial setbacks during hospitalisations and expensive medical procedures. However, when you are buying health insurance, the insurer will consider some important parameters, such as your age, health, family history, etc., and approve a healthcare plan accordingly. Alcohol addiction is also an essential parameter that insurance companies consider before selling health insurance. Since alcohol consumption can increase your healthcare costs, insurance companies charge higher premiums to those who consume alcohol to cover the risks.

Read on to understand the impact of alcohol on health insurance premiums and tips to reduce the premium of your healthcare plan if you consume alcohol.

Do insurance companies in India offer health insurance to those who consume alcohol?

Yes, insurance companies in India do offer health insurance to people who drink alcohol. However, if you are a regular drinker, the insurer may ask you to take a test to measure the amount of alcohol in your body. Since alcohol addiction increases the risk of many health conditions, insurance companies may also have a set of rules or exclusions for heavy drinkers.

However, insurance providers will not reject your health insurance application only because you consume alcohol. So, you can apply for a healthcare plan and get one easily.

While insurance companies do cover the hospitalisation expenses of policyholders who consume alcohol, they may not cover bills related to accidents, injuries and health issues that arise out of heavy alcohol consumption.

Does alcohol consumption impact the premium of your healthcare plan?

Alcohol consumption is one of the factors affecting health insurance premiums. Most insurance companies in India charge higher premiums for healthcare plans issued to those who drink alcohol. This is due to the fact that regular consumption of alcohol increases the risk of suffering from high blood pressure, health conditions, liver disease, stroke, cancer and digestive issues. Since the treatment expenses of these life-threatening conditions are on the higher side, insurance companies charge higher premiums from policyholders to cover the associated financial risks.

Is it important to declare to the insurance company that you consume alcohol?

Whether you consume alcohol occasionally or regularly, you must tell the insurance company about the same at the time of policy purchase. The following are the reasons:

• If the insurer asks you to undergo a health check-up, they will come to know that you consume alcohol and reject your application.

• If you face health issues related to alcohol addiction, the insurer may reject your claim altogether.

Importance of buying health insurance for people who drink alcohol

Alcohol addiction or excessive alcohol consumption can have a negative impact on your health and increase the risk of many chronic and life-threatening conditions. These include high blood pressure, cancer, weakening of the immune system, mental health issues and memory problems. The treatment of these life-threatening conditions can burn a hole in your pocket if you are not covered under adequate health insurance.

The following are the reasons why you should buy health insurance if you consume alcohol.

• Life-threatening conditions

Excessive consumption of alcohol can lead to various life-threatening conditions, the treatment expenses of which are higher. If you have health insurance, the insurer will cover a major part of your hospital bills and associated expenses and keep away financial worries.

• Increasing healthcare costs

Healthcare expenses are increasing by the day, and even a minor medical procedure can cause financial strain if you are not prepared for it. This is when having a health insurance policy can help.

• Quality and timely treatment

When you have health insurance, you can opt for quality and timely treatment without worrying about expenses. This can help increase your chances of recovery and save you from both mental and financial stress.

• Wide coverage

A comprehensive health insurance policy will cover your hospital bills, pre- and post-hospitalisation expenses, home healthcare, daycare treatments, AYUSH treatments, organ donor expenses, mental healthcare, and more. So, when you have a healthcare plan handy, you will not have to worry about financial setbacks during medical emergencies.

• Complimentary health check-ups

Many health insurance policies offer complimentary or preventive health check-ups at the time of policy renewal. This can help in the early detection of a health condition and its timely treatment.

• Cashless treatment

If you have health insurance, you can easily opt for cashless treatment at a network hospital of your insurance provider. This will save you from the hassles of settling the hospital bills from your pocket.

How to reduce your health insurance premiums if you consume alcohol?

If you consume alcohol and are looking for ways to reduce your health insurance premiums, the following tips can help.

1. Choose a family floater policy

Instead of opting for individual health insurance, choose a family health insurance policy to cover your medical bills. This healthcare plan will cover you and your loved ones at affordable premiums.

2. Select add-ons wisely

Check the add-ons offered by your insurance provider and choose a few important ones only. Every add-on cover will increase the premium of your health insurance policy, so make sure you don't take unnecessary add-ons with your policy.

3. Take a healthcare plan with a higher deductible

A health insurance deductible is the percentage of the claim amount the policyholder must pay at the time of claim settlement. Hence, choosing a higher deductible will reduce the premium of your health insurance policy. For example, the premium of a health insurance policy with a deductible of 20% will be less than that of a policy with a voluntary deductible of 10%.

4. Compare healthcare plans

Rather than choosing a plan randomly, make sure you shortlist a few good ones and compare their inclusions, exclusions and premiums. This will help you find one that fits your needs and pocket.

5. Overcome alcohol addiction

The best way to reduce the premium of your healthcare plan is to overcome alcohol addiction. If you quit drinking, you can get in touch with the insurance company and submit necessary test reports and supporting documents to prove the same. If the insurer is convinced that you have quit alcohol consumption and are following healthy lifestyle habits, they will reduce the premium of your health insurance policy.

Conclusion

Although the impact of alcohol on health insurance will increase your policy premiums, it is important to buy adequate medical insurance or critical illness insurance and stay covered. A healthcare plan can ease your financial burden during medical emergencies and help you concentrate on the treatment rather than worrying about the bills. Moreover, you can also opt for cashless treatment at a reputed network hospital, and the insurer will settle the bills on your behalf.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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