How smoking and tobacco consumption affects life insurance cover
Updated On Dec 23, 2022
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An important financial tool, life insurance plans offer protection and ensure that you are protected against uncertainties. With a life insurance plan, you can make sure to provide much-need financial assistance to your loved ones even in case of your absence. However, there are certain things that have a role to play in determining your life insurance premium amount, and one such thing is your health status. As we all know that smoking and the consumption of tobacco adversely affect your health. Even WHO or the World Health Organisation has stated that 1 about million people in India die annually due to smoking and tobacco consumption. So, in the section below, let us highlight how tobacco consumption and smoking affect your life insurance coverage.
Who is a Smoker for Life Insurance Companies
According to life insurance companies, anyone who indulges in a habit of nicotine consumption is classified as a smoker. An unhealthy habit of nicotine consumption can be of any form such as tobacco consumption, cigars, hookahs, or any related intakes. There is no set frequency to determine whether you are a smoker or not, the only condition is that if you have smoked even once in the last year, then the life insurance company will classify you as a smoker. So, let us understand how life insurance coverage gets affected due to the consumption of alcohol.
Impact of Smoking and Consumption of Tobacco on Life Insurance Cover
Listed below are the impacts of smoking and tobacco consumption on life insurance premiums:
- Increase in a premium amount: Smoking is dangerous for health, this is something that almost all of us have heard. Right? But, do you know that smoking is not just a health hazard but it also affects the life insurance premium amount? Once you have ticked yes against the smoker option on life insurance forms, then the life insurance premium amount will be accordingly determined and will mostly be higher. It is important to know that if you indulge in smoking and tobacco consumption after you have purchased a life insurance plan, then in that case the premium amount will be the same. Moreover, whenever your insurer finds out about this, then there are chances that they might get your premium revised. There are a few insurers that also offer discounts if the policyholder has quit smoking after buying the life insurance plan.
- Lesser claim coverage: The premium of your life insurance plan is greatly determined based on your health condition. As a smoker, the chances of falling ill and getting affected by different health plans are high. Thus, there will be lesser claim coverage for smokers.
Can I Hide about Smoking and Tobacco Consumption from my Insurer?
Many individuals often lie to their insurers about their unhealthy lifestyle practices so that the life insurance premium amount does not increase. If you are thinking that you can lie about your habit of smoking and tobacco consumption to your insurer, then you are wrong. By doing so, if you are found by your insurer about the same, then there is a high chance that your claim can get rejected. Lying about this is even considered insurance fraud, and thus if found guilty, then your life insurance policy can even be dissolved. So, why risk getting your claims rejected, instead it is a better idea to disclose to insurers if you are involved in smoking and consuming tobacco.
Thus, whenever you are buying a life insurance plan, make sure to inform your insurer honestly whether you smoke and consume tobacco or not. As doing so will rightly help the insurer determine the premium amount for you. Also, say no to this habit as this is extremely important for the well-being of your health.
Also read: All About Loan Against Life Insurance