Term Insurance Plan for Smokers

Every smoker must have life insurance as their probability of passing away is greater than a non-smoker due to the potential health hazards. These health hazards include cancer, lung diseases, heart stroke, diabetes, etc. There are many term plans offered by various insurance companies for smokers. Generally, the term plans for smokers are more costly compared to normal term plans as the risk associated with insuring smokers is higher.

The smokers are categorized into three types by insurance companies based on their smoking habits:

This article provides you with complete information about the best term plan for smokers, eligibility criteria, things to consider when buying, etc.

Best Term Plan For Smokers

Here is the list of term life insurance for smokers:

* The above premiums are for a 30-year-old smoker male for a sum assured of Rs 50 lakhs.

Eligibility Criteria for Term Insurance Plan For Smokers

How Does Term Life Insurance For Smokers Work?

If a policyholder has smoked or consumed tobacco in the last 12 months then the insurance company would consider him as a smoker. The premiums charged to smokers by insurance companies are usually 30-40% higher depending on the level of smoking and medical reports. You should not hide your smoking habits from your insurer as it may result in claim rejection by the insurer. That’s why you should disclose your smoking habits and health facts with your insurers to avoid any issues at the time of claims.

How does smoking affect my term insurance premiums?

The term insurance premiums charged by a smoker vary by 30 to 60% as compared to a non-smoker. It happens so because smokers are more prone to death as compared to non-smokers. Let’s understand how smoking affects your term insurance premiums with a simple illustration.

There are two 25-year-old friends Raghav and Gaurav. Raghav is a smoker while Gaurav is a non-smoker. Let’s see how term insurance premiums vary for both individuals.

There is a premium gap of Rs 5,695 between the two friends due to smoking habits.

What if I do not inform the insurer about my smoking habits?

Various things may happen if you do not inform your insurer about your smoking habits:

Policy Cancellation- Your insurer may cancel your policy if you do not inform your insurer about your smoking habits at the time of policy purchase.

Claim Rejection- The insurance company may refuse to accept your claim if you do not disclose your smoking habits to the insurer.

Charge of insurance fraud or breach- The insurance company may charge you for the insurance fraud and take legal action against you.

Conclusion

If you are a smoker it is better to buy a term plan to give financial protection to your family. You should do your research before choosing a term plan as there are plenty of term plans available in the market. No matter which plan you choose it’s important to disclose your smoking habits and health details to your insurer while buying the term plan. We have provided a list of best-term plans for smokers above for your reference.

If you are still confused about which term plan is ideal for you as a smoker then you can contact us at PolicyX.com. One of our insurance experts will reach you shortly and help you choose the right term plan.