Insurers target middle-class drinkers with higher premiums

By Daniel Martin and Sophie Borland

People who drink more than the recommended alcohol limits are being hammered with huge hikes in life insurance premiums.

Firms are getting tough on the rising tide of binge drinking, and many clients are seeing their premiums double.

With the Christmas season in full swing, revellers will be shocked to learn that even those with moderate drinking habits are caught up in the new rules, with women particularly affected.

Crackdown: The prospect of rising premiums will shock Christmas revellers

Ministers say one of the largest groups likely to be affected are middle-aged, middle class people, who often drink more than they should by, for example, having a couple of glasses of wine every day after work or with meals.

A woman who drinks 21 units a week, not far above the Government's guidelines, could end up paying an extra ?50 a year.

A man drinking 35 units - two and a half pints of lager a night - could find himself facing extra premiums of up to ?100 a year.

And a man who admitted consuming 50 units a week could see his premiums double from ?150 to ?300 because his drinking would be categorised as 'harmful'.

Very heavy drinkers may be refused cover completely.

Guidelines state that women should not drink more than 14 units of alcohol a week, rising to 21 for men. One unit equals half a pint of beer, a shot of whisky or a small glass of wine.

But in reality many consume far more, with official figures showing that 10million adults - one in five men and one in three women - drink at a level which is 'hazardous' to their health.

Many people underestimate the number of units they consume due to the large sizes of wine glasses and double shots of spirits that are put into many cocktails.

Insurers say they are reacting to increases in health-related problems such as cirrhosis of the liver, heart problems and certain cancers.

But critics say they are simply cashing in on drinking after raising premiums on smokers.

To ensure claimants are not lying about their drinking habits, most life insurance firms are now checking with doctors' notes for signs of alcohol use.

The insurers strongly advise customers to tell the truth about how much they drink. Several companies admitted to refusing to pay out claims if they had evidence that they were drink-related.

Companies including the AA, Norwich Union, Legal and General and Direct Line said they would increase premiums for drinkers.

A spokesman for the AA 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.'

Malcolm Tarling of the Association of British Insurers said: 'Insurance companies are simply making a normal judgment of risk.'

Original here