Are Smokers Eligible For Buying Term Insurance?

It is commonly known that smoking increases the risk of developing cancer and severe lung disorders. What many may not know is that smoking also affects your chances of securing a term insurance policy to protect their family’s future. Regardless, it is important that smokers choose a term insurance plan to ensure that their families are financially secure if something untoward happens to them.

When buying a term plan, smokers may have to pay relatively high premium rates.

How does a smoker’s term insurance plan work?

A policyholder can be considered a smoker if they have used tobacco in any way in the last 12 months. Smokers may pay a comparatively higher percentage of amount for term insurance premiums than non-smokers.

Nevertheless, it is crucial to let the insurance company know if you smoke.

What are the types of smokers as per the insurance company?

Not all smokers follow the same smoking habits. For this reason, insurers have divided smokers into three categories:

  • A typical smoker has a few minor health issues.
  • Smokers who are classified as table-rated have apparent health issues as a result of smoking.
  • Someone who smokes but is generally in good physical and mental health falls under the category of the preferred smoker.

When can a smoker qualify for a term insurance plan?

Even if you smoke, you can still purchase term insurance. However, compared to a non-smoker, the premium for term life insurance for smokers might be high. It is advised to use an online term insurance calculator to evaluate the sum of the premium. At the time of purchase, all insurance companies may inquire about your personal lifestyle choices. 

Although most people conceal this information in the hopes of receiving a lower rate, it might be a good idea to let the insurer know about your habit. 

A smoker’s term insurance can be significantly different from a non-smoker’s. Regardless, the basic meaning of term insurance remains the same and smokers are expected to know the following before buying a term plan:

  • Minimum age of 18
  • Maximum age of 75
  • Minimum Term of the Policy: 5 to 10 Years
  • 30 to 40 years is the maximum policy term.
  • Minimum Sum Assured: 3 Lakhs
  • Maximum: May increase to the requested sum from the policyholder
  • Regularity of Premium Payment: Annual
  • Eligibility: Applicable to Indian nationals residing in India
  • Plan Maturity: If the policyholder lives longer than the policy, they may not be entitled to any benefits.

What happens if you don’t let the insurance company know you smoke?

The insurer may take the following steps against the applicant if the policy buyer gives misleading or erroneous information about their smoking habits out of fear of having to pay excessive premiums:

  • Bringing charges against them for committing an insurance scam
  • The policy may be deemed invalid or void.
  • The policyholder may not receive the benefits of the coverage.

How can smokers purchase the ideal term plan?

If you smoke and seek term insurance, you should research several insurance plans online and compare the premium costs of each one. The premium and sum assured may vary from one insurer to another depending on your other practices and requirements. Choose the option that best fits your needs by evaluating the premium amount on term insurance calculator online as per the desired features.

As was already mentioned, lying about your lifestyle choices never helps. Additionally, since most insurance providers run a medical exam on you before offering you a term plan, they can undoubtedly learn if you are in good health.

Early in life, getting a term plan can be beneficial. When you are younger than 30, the meaning of term insurance  and coverage costs are significantly different than when you are older. Using this method can help you find a budget-friendly strategy.

To conclude:

It is advised that you take care of yourself first to protect the welfare of your family, in addition to purchasing a term insurance policy to secure their financial future. The detrimental effects of smoking on health are well-known. As a result, breaking the habit may be the best course of action. But if you smoke, it’s best to tell your insurer upfront.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.