- High premiums for smokers
- Smoking effect on premiums
- Best plans for smokers
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:
Preferred Smokers
These smokers are usually fit despite smoking. The insurance premiums for this kind of smoker are lowest as compared to other smokers.Typical Smokers
These smokers are suffering from minor health issues due to smoking. The premiums charged to them are more than the preferred smokers.Table Rated Smokers
These smokers have health issues due to smoking. The premiums charged to them are the highest.
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:
| Name of the Plan | Entry Age | Maximum Maturity Age | Policy Term | Sum Assured | Premium (Annually) |
|---|---|---|---|---|---|
| HDFC Life Click 2 Protect Super | Min- 18 years Max- 84 years | 85 years | 1 month to 7 years | Min- Rs 50,000 Max- No limit | Rs 16,395 |
| Max Life Smart Secure Plus Plan | Min- 18 years Max- 65 years | 85 years | 5 to 67 years | Min- Rs 10 lakhs Max- No limit | Rs 11,385 |
| Bajaj Allianz E Touch Life Shield | Min- 18 years Max- 65 years | 75 years | 10 to 40 years | Min- Rs 50 lakhs Max- No limit | Rs 11,621 |
| Tata AIA Sampoorna Raksha Supreme | Min- 18 years Max- 65 years | 100 years | 10 to 40 years | Min- Rs 50 lakhs Max- No limit | Rs 15,399 |
| ICICI Prudential iProtect Smart Lumpsum Plan | Min- 18 years Max- 65 years | 100 years | 5 to 99 years | Min- Subject to minimum premium Max- No limit | Rs 12,834 |
* 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
| Parameters | Limits |
|---|---|
| Entry Age | 18 to 75 years |
| Maturity age | 85 years |
| Policy tenure | 5 to 40 years |
| Premium payment term | 5 to 40 years |
| Premium payment frequency | Monthly, Quarterly, Half-yearly, and Yearly |
| Premium | Rs 2,169 |
| Sum assured | Rs 3,00,000 (Minimum) No Limit (Maximum) |
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.
| Premium for Raghav | Premium for Gaurav | Difference in Premiums |
|---|---|---|
| Rs 15,186 | Rs 9,491 | Rs 5,695 (60%) |
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.
Term Insurance Plan for Smokers: Faq
1. Can a smoker get term life insurance?
Yes, a smoker can get term life insurance. There are various term plans available in the market for smokers.
2. Can I hide smoking while buying term insurance?
You should not hide your smoking habits while buying a term plan as it may lead to policy discontinuance, claim rejection, and charge of insurance fraud on policyholders.
3. What are some of the best-term plans for smokers?
Some of the best-term plans for smokers include HDFC Life Click 2 Protect Super Max Life Smart Secure Plus Plan Bajaj Allianz E Touch Life Shield Tata AIA Sampoorna Raksha Supreme ICICI Prudential iProtect Smart Lumpsum Plan
4. What if I start smoking after I get life insurance?
If you start smoking after buying the term plan it is difficult for the insurance company to discover your new habit.
5. Does smoking affect your term insurance premiums?
Yes, there is a difference of 30 to 60% between the premiums charged to a smoker and a non-smoker depending on the frequency of smoking and medical health.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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