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How Smoking Affects Life Insurance Premium

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Akash caught himself in a dilemma when he wanted to purchase life insurance. Being a smoker, he faced a tough choice of whether to disclose his smoking habits to the insurance company. He followed his instinct, chose not to reveal he was a smoker, and bought the life policy. He knew that if he would disclose the fact that he smokes, his life insurance premium would rise significantly.

Your health and lifestyle habits play a crucial role in determining your eligibility and rates for life insurance. Life insurance companies assess the risk associated with insuring individuals and healthier individuals typically enjoy lower premiums.

Impact of Smoking on Life Insurance

Importance of Disclosing Smoking as a Habit

A smoker generally perceives that life insurance plans are not for him. However, all life insurance companies offer coverage to smokers. So, by disclosing smoking as a habit, individuals ensure they are fully covered and receive the appropriate benefits when needed. Honesty is the best policy. If you are a smoker, inform your insurance company about your smoking habit and provide accurate details about your smoking frequency. 

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Do Smokers Pay High Premiums?

Smokers are likely to pay higher premiums due to the associated health risks and increased likelihood of developing smoking-related diseases. Life insurance companies consider various factors when calculating premiums, and smoking is significant. The exact amount of premium increase for smokers can vary depending on factors such as age, smoking duration, and the number of cigarettes smoked per day.

Life insurance tips for Smokers

Here are some important tips that smokers can consider to navigate the insurance landscape more effectively: 

  • Disclose your Habit: Providing accurate information to the insurance company regarding your smoking habit is crucial. Hiding this information is not ethical. 
  • Compare life insurance plans: Smokers should explore different insurance plans available in the market and compare their features, benefits, and premium rates. This will help them identify the most suitable plan for themselves. 

Ask to be Re-rated: If you are a smoker with an existing life insurance policy, consider requesting a re-rating if you have successfully quit smoking for at least 12 months.

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What If I Quit Smoking Later?

If you have already purchased life insurance when you used to smoke but have successfully quit smoking for at least one year, there may be an opportunity to secure a lower premium. It is advisable to inquire with your life insurance provider regarding the same. It’s important to note that if you have developed any new medical conditions during this time, they will also be taken into account when determining the revised rate. Therefore, obtaining a new rating after quitting smoking is not guaranteed and will depend on various factors, including your overall health condition.

Bottom Line 

Being a smoker can have a significant impact on your life insurance premiums. Quitting smoking improves your health and can lead to potential savings on your life insurance policy. If you are a smoker, it is crucial to disclose your smoking habit honestly when applying for life insurance to ensure accurate premium calculations. You can also get to know about your life insurance policy with Insurance Samadhan’s app Polifyx and make informed decisions with the “Know Your Policy” feature.

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Also Read:  Claim Settlement under Life Insurance

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Shikhar Vashisht

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