Money Expert > Life Insurance > How Drinking and Smoking Affect Life Insurance Costs
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Last updated: 23/05/2025 | Estimated Reading Time: 5 minutes
In the UK 57% of adults drink alcohol and 15.1% smoke cigarettes. The health risks of both are widely known, but many adults have accepted or rationalised them. However, life insurance companies, which have a financial interest in your long-term health and life expectancy, haven’t been so forgiving.
No matter what you tell yourself as you pour that glass of red or light up, smoking and heavy drinking put you at higher risk of serious health problems, including cancers, strokes, and heart attacks. They increase the likelihood you'll die early and your insurance company will have to pay out, or pay out a large sum on a decreasing term policy. To offset the risk you and your weekend-or lunch break or "during Newsnight"-habits pose to their bottom line, insurance companies will hike your bills.
But by how much will smoking nudge up your life insurance costs? And what about the occasional tipple? How much drinking do you have to report to your insurer? And can quitting either habit save your money on your premium? We'll take a closer look at the impact our less salubrious habits have on life insurance costs below.
Although headlines sometimes highlight the potential health benefits of an alcoholic drink like red wine, there is scientific consensus that excessive drinking poses a significant risk to your health. Both short- and long-term alcohol misuse can lead to alcohol related deaths, strokes, liver failure, and other serious issues.
Your life insurance application may include questions about your alcohol intake and your medical history, and it’s crucial to answer truthfully. Misrepresenting how much alcohol you drink could result in a reduced payout or even a rejection of your claim.
You don’t need to report every special occasion drink or a festive toast. Splashing out for one week on holiday won't hike your premiums, and similarly going completely teetotal won't necessarily earn you a discount. In general, occasional drinking won't have a noticeable impact on the amount you pay for monthly premiums.
However, if your drinking habits regularly exceeds the government's guidelines for alcohol consumption-revised in 2016 to be 14 units a week for both men and women, spread over three or more days-expect to pay steeper premiums on your insurance.
And be careful about calculating the amount you drink. 14 units doesn't necessarily mean 14 separate drinks. In general, it corresponds to six pints of 4% ABV beer, six pints of 13% wine, and 14 25ml glasses of 40% spirits. If you run the maths, you might discover that all your social' drinking is adding up to a seriously unhealthy habit, and one that might be contradicting what you told your insurer and compromising that life insurance policy you're paying for each month.
Underestimating or misreporting how many units you consume each average week could void your life insurance cover. Insurers may review your medical records or consult a medical professional. If you die from alcohol related problems like cirrhosis, and your insurance provider finds discrepancies, your life insurance pay out could be reduced or possibly deprive your family of the support you've been paying for for years.
If you’ve previously been treated for alcohol dependency, some mainstream life insurance companies may refuse to insure you. In such cases, you may need to approach specialist providers who deal with recovering alcoholics and can offer life insurance quotes, albeit with much higher premiums. You’ll also need to disclose any alcohol related driving offences, as they may influence your insurance premiums.
Certain insurance policies exclude cover for deaths caused by alcohol misuse, such as fatal falls while intoxicated. Always check the terms of your life insurance policy.
Smokers typically pay monthly life insurance premiums that are up to twice as high as those for non-smokers of the same age. This is because smoking habits significantly raise your risk of a smoking related illness, such as lung cancer, heart disease, or stroke. Statistics back up insurers on these higher chargers, showing that smokers are more likely to make claims on their insurance policies, because smoking puts them at higher risk of death and disease.
And unlike with alcohol, where the occasional indulgence at holidays and special occasions won't affect your premiums, just the occasional cigarette can classify you as a smoker. Light up on the weekends or socially, or celebrate with the odd cigar and your insurer will regard you as a smoker. And don't try to pull the wool over their eyes by misrepresenting your habits: providing inaccurate information when applying for insurance can lead to the cancellation of your policy and the rejection of claims.
During your life,
After your death, your life insurance company can investigate any claim made and are more likely to do so if you die of a smoking-related illness, such as lung cancer. If they discover you were covertly smoking while paying the lower premiums of a non-smoker, they can reduce the payout your family receives or even deprive them of it entirely.
It's important to note that although e-cigarettes or vaping are touted as the healthier alternative to cigarettes, as of now insurers make no distinction between the two. If you're one of the 2.8 million British adults who use e-cigarettes, you'll be classified as a smoker by insurance companies and pay higher premiums accordingly. Use of any tobacco and nicotine products, from chewing tobacco to cigars, also qualify you as a smoker in the eyes of insurance underwriters.
The good news is that quitting smoking can significantly lower your life insurance costs over time. Insurers will typically consider you an ex smoker after you've successfully abstained for 12 or 18 months. And you don't have to wait to take out a life insurance policy until you've logged enough smoke-free weeks. Life insurance providers can update your policy and adjust your premiums if you can prove to them you've been nicotine-free for the required period of time.