Smoking is detrimental to your health and financial well-being. To raise public awareness of the negative effects of smoking, the government and NGOs conduct ongoing programmes. Even the premiums for term insurance are comparatively greater for smokers than for non-smokers.
Yes, smoking has a significant impact on the price of term insurance due to the health risks involved. The dangers associated with smoking are taken so seriously by insurers in India that premiums might be much higher than they would be for someone who does not smoke. This is owing to the perception and actuality that people who smoke are much more likely to file an insurance claim for a premature death or a serious sickness in later life. Quitting smoking is among the most effective strategies to reduce the cost of your term insurance.
Who Are Smokers According To Insurers?
According to the insurance industry, if you have smoked nicotine products during the last twelve months, you are considered a smoker. No matter if you’re a chain smoker who smokes two packs a day or a smoker who only smokes occasionally. Most of the time, the insurance business treats all smokers equally.
The reason is that when determining a quotation for the price of the payment for a term insurance policy, underwriters typically don’t take your level of smoking into account.
Effect Of Not Disclosing Smoking Habit
Like we can see from the aforementioned example, smokers pay higher premiums than non-smokers, which may lead some people to conceal their cigarette habit in order to save money on their premiums. However, insurers also conduct some due diligence by reviewing applicants’ medical histories for life insurance, which may indicate a customer’s use of cigarettes.
The medical records would note if you were or are a smoker or include any other data that may expose your lying if you are still not detected as a smoker and go on to develop a serious sickness like cancer.
Will the Premium Go Down If Someone Quits Smoking?
Smokers pay higher life insurance premiums than non-smokers, although they are still reasonably priced. After twelve months of giving up smoking, a policyholder who is currently trying to quit can request that the insurance provider review their coverage. Depending on how long it has been since the customer last smoked, the corporation may be able to lower the premium rate.
Final Notes
While it is still widely believed that tobacco addiction increases the likelihood of health-related claims, this is not the only factor that directly affects the cost of term insurance. The misconception that smokers are either denied insurance coverage or have problems with the claims procedure keeps many smokers from purchasing a term insurance policy. If you smoke or don’t smoke, it is only advised that you submit your insurer with accurate information to ensure a seamless claim process.