Smokers vs Non-Smokers Life Insurance

Smoking is a habit that has become increasingly prevalent in our society, despite the well-documented health risks associated with it. Not only does smoking affect our health, but it can also have a significant impact on our finances, particularly when it comes to life insurance. As a smoker, you may find yourself paying higher premiums than a non-smoker due to the higher health risks associated with smoking. However, understanding the impact of smoking on life insurance premiums in India can help you make informed decisions about your coverage and ensure that you are getting the best possible rates. In this article, we will explore the impact of smoking on life insurance premiums in India.

Insurance companies define a Smoker as someone who uses tobacco products in the last 12 months. Tobacco products such as cigarettes, cigars, pipes, and chewing tobacco are included in this category. Smokers are considered high-risk individuals by insurance companies, which means they have a higher likelihood of dying prematurely than non-smokers.

Almost a quarter of all preventable deaths occur due to smoking. It increases the risk of several serious health conditions, including cancer, heart disease, stroke, and respiratory illnesses. Smokers have a higher risk of premature death due to these health complications, which makes them a higher risk for insurance companies.

As a result of tobacco use, Smokers may be charged higher premiums for Life Insurance policies than non-smokers. In India, premium differences can be significant, with smokers often paying up to 50% more than non-smokers. 

For example, a 40-year-old smoker might pay around ₹5,000 per month for a ₹50 lakh policy, while a non-smoker of the same age might spend around ₹3,500 per month for the same coverage. This difference in premiums can add up over time, resulting in a substantial cost difference between policies.

Now that we have looked at the key differences between smokers and non-smoker's life insurance premiums in India, let's explore some of the ways that smoking can impact your premiums.

1. Higher premiums

Smokers are generally charged higher premiums than non-smokers. This is because smoking is considered a significant health risk, and smokers are more likely to develop serious health conditions. The exact premium rates will depend on a range of factors, including the insurer, the policy type, and the individual's smoking habits.

2. Reduced coverage

In some cases, smokers may be offered reduced coverage or may be denied coverage altogether. This is particularly true for smokers who have already developed health conditions related to smoking, such as lung cancer or emphysema. Insurance companies may view these individuals as high-risk, and may be unwilling to provide coverage.

3. Limited policy options

Smokers may also have limited policy options compared to non-smokers. For example, some insurance companies may only offer term life insurance policies to smokers, rather than Whole Life Insurance or Universal Life Insurance. This is because term life insurance policies are typically less expensive than other policy types, and may be more affordable for smokers.

Along with life insurance coverage at a higher premium, a smoker's policy may have additional.benefits. For example smoking cessation programs or access to health resources to help individuals quit smoking. Here are some things to remember about a smoker's life insurance.

Insurance companies consider Smokers low-risk individuals. They have a lower likelihood of dying prematurely than Smokers, which means they pay cheaper premiums for life insurance policies. Here are things to remember about non-smoker’s life insurance.

Also read: Health Insurance for smokers

In addition to smoking status, several other factors affect Life Insurance premiums. Age, gender, health, occupation, and hobbies can all impact Life Insurance costs. Let’s take a look at each of them individually

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.