Insurance Policy

Regardless of your lifestyle choices, protecting your family from future uncertainties with a term insurance plan is always crucial. Furthermore, people who smoke need term insurance plans even more. It is advisable to obtain appropriate life insurance coverage such as for 1 crore term insurance or higher even if you smoke sometimes, as even a small amount of smoke can harm your lungs.

Given the fact that smokers are more prone to health risks, term plans for smokers inevitably differ from term plans for non-smokers. If you whether occasionally or regularly, here are some aspects about term insurance you should know before getting one for yourself.

Why Is Term Insurance Required for Smokers?

Whether or not an individual smokes, having a term insurance policy is generally beneficial. While heart and lung problems may be more common in smokers, this does not indicate that people who do not smoke are immune to them entirely. There are certain telltale signs that set one healthy individual apart from the other when two people with identical lifestyle choices are compared, one of whom smokes and the other does not.

Therefore, individuals who smoke ought to make plans to purchase at least a 1 crore term insurance policy that provides sufficient coverage for their family members or dependents. Additionally, it is crucial that people buy the term plan as soon as possible because the health hazards associated with smoking are expected to rise with each year that goes by.

If a smoker needs more life insurance coverage, they can also add health riders to their term plan. Therefore, in the event of a medical emergency or the policyholder’s unexpected death, their family will not have to drain their emergency funds or lifelong savings in order to pay for the treatment and at the end, will be able to maintain their standard of living.

Types of Smoker Categories Under Life Insurance

No matter how many cigarettes a smoker smokes each day, the harm they are doing to their lungs and general health is frequently irreversible. However, life insurance companies do distinguish between policyholders’ differing smoking habits in order to charge each policyholder a reasonable premium for a 1 crore term insurance plan based on their smoking habits and the associated risk to their lives. Life insurance companies has categorized smokers under three categories:

Preferred Smoker: Preferred smokers smoke very infrequently—perhaps every two months or maybe once in a while. Notwithstanding their smoking habits, these policyholders are as healthy as any non-smoker and do not have any associated medical issues. As a result, even if their policy premiums can be marginally higher than those of a non-smoker, they are still lower than those of a smoker for term insurance.

Normal Smoker: Compared to preferred smokers, typical smokers have more severe smoking behaviours, which may lead to minor health complications related to their smoking. Most life insurance companies would not deny such policyholders the benefit of a life cover, even though it is advised that they receive medical assistance to progressively cut back on or stop smoking. However, their term policy’s premiums will be a little more due to the health risk.

Table-rated smokers: Table-rated smokers are heavy or habitual smokers who clearly have health problems as a result of their smoking. Even in this case as well, a life insurance provider will not refuse to provide such policyholders with term insurance coverage; however, the premiums for this smoker category will be higher. Table-rated smokers who choose to stop may not be able to lower their premiums, but they can live better and be healthier.

What if I consume just tobacco?

Life insurance companies typically ask very specific questions to determine whether or not you smoke. The insurance companies consider an individual as a smoker if they take nicotine in any form like bidi, cigarettes, cigars, hookahs, or chew tobacco. The insurer may still consider you to be a smoker even if you use a nicotine patch or gum. 

Insurance companies usually ask the following questions to find out if you smoke: 

  1. a) Do you use nicotine and/or tobacco products? 
  2. B) Are you a smoker? 
  3. C) In the previous five years, have you used any tobacco products? 
  4. D) Do you have any past experience with tobacco use? 

If you answered “yes” to any of these questions, you’ll probably be classified as a smoker. Smokers are classified as high-risk customers by insurance companies, and as a result, their premiums for coverage like 1 crore term insurance will be higher. 

What Should I Keep in Mind When Purchasing Term Plans for Smokers?

As much as it is important to understand why a term insurance plan is important for your family, it is equally important to understand what you should know before buying one:

Premium prices: In order to choose a term insurance plan for smokers, compare the premium rates of the insurance you are considering.

Rider option: You can learn more about how your term insurance plan can safeguard your family by reading the fine print. If you would like to add a health rider to your term plan, make sure to find out if there is a waiting time for any pre-existing conditions or if you should choose a different rider. Carefully consider the riders as premiums for smokers are already costly.

Maximum coverage: The underwriting standards of the life insurance company may apply to the maximum limit for term insurance coverage. However, take your family’s needs and possible emergencies into account when selecting your coverage. In the awful scenario that an illness precedes your death, the amount guaranteed should be sufficient to pay for both the course of treatment and the future needs of your family.

So we are saying

Without a doubt, smoking has no positive effects; yet, this shouldn’t prevent you from providing for your family’s future financially. Often, people who smoke occasionally decide to give up completely before purchasing a term plan. As a result, the timing of your term plan purchase might have a significant impact on the amount of your premium. Additionally, you can always take action to better your health and obtain affordable term insurance if you smoke very little or never at all.