Life insurance is a vital financial tool that provides financial security to your loved ones in case of your untimely demise. However, when applying for life insurance, many factors come into play to determine your premium amount. One of these crucial factors is whether or not you smoke. In this article, we will discuss how smoking affects life insurance premiums in India.

Understanding Smoking & Life Insurance

Smoking indeed has a significant impact on life insurance premiums due to the well-documented health risks associated with the usage of tobacco. When individuals opt for life plans, the insurers meticulously evaluate an applicant’s risk profile to determine the appropriate premium cost. Smoking is considered a high-risk behaviour that can likely lead to a variety of health issues, including heart disease, lung cancer, and respiratory problems. This increased risk therefore translates to varied premium rates than normal cases.

Smokers vs. Non-Smokers

In the eyes of life insurance providers, individuals who smoke are more likely to have health problems and a shorter life expectancy compared to non-smokers. Therefore, smokers are generally charged higher premiums to compensate for this increased risk. The difference in premium rates between smokers and non-smokers can be substantial.

Premium Costs for Smokers

If you are a smoker applying for life insurance in India, you can expect to pay significantly higher premiums than non-smokers. The exact increase in premium can vary depending on various factors, including the type and amount of tobacco you use and your age. On average, smokers may pay 50% to 100% more for their life insurance premiums compared to non-smokers.

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Quitting Smoking & Life Insurance

While the impact of smoking on life insurance premiums is significant, there is good news for those looking to quit. Many insurance companies offer lower premiums to individuals who have quit smoking for a specific period, typically ranging from one to five years. Once you have successfully quit smoking and maintained a tobacco-free lifestyle, you can apply for a revaluation of your life insurance premium, potentially leading to a reduction.

The Importance of Full Disclosure

When applying for life insurance, it is crucial to provide honest and accurate information about your smoking habits. Failing to disclose your smoking status can have severe consequences. If an insurance company discovers that you misrepresented your smoking habits or provided false information during the application process, it can result in the denial of a claim or the cancellation of your policy.

Conclusion

Smoking undeniably has a substantial impact on your life as well as life insurance premiums. Smokers face higher premium costs due to the increased health risks associated with tobacco use. However, quitting smoking can lead to potential premium reductions after a smoke-free period. To ensure that you receive the most accurate and affordable life insurance coverage, it’s essential to be transparent about your smoking habits during the application process. Ultimately, investing in life insurance is not only about protecting your family’s financial future but also a step towards a healthier, smoke-free life.

This article has been written by Rakesh Goyal, Director, Probus Insurance Broker. Views are personal