How Smoking Can Affect Term Insurance Policy

How Smoking Can Affect Term Insurance Policy

by

Sarika Kodag

Not only medical practitioners but cigarette packs are also imprinted that smoking is injurious to health. According to survey, there is a tremendous increase in the consumption of tobacco in India, with around 57 percent men and 110.8 percent women. As per the research, cigarette smoking has increased in India because young generation is getting influenced by their favorite celebrities. But, it is now time to understand that the amount of medical costs which will incur will be more as compared to the amount person spend on cigarettes every year. In fact, the life insurance premium paid by the smoker is more as compared to the non-smoker. Below are some of the ways how smoking can affect term insurance policy:

This policy gives coverage at a certain amount of premium within a limited time period. In case the policyholder dies during policy period, the death benefit offered by this plan will be given to the nominees. It is considered to be the least expensive way to get a death benefit. In India, many people are opting for this plan due to increase in the awareness and low insurance premium. It is advisable to inform your insurance companies in India, in case you have developed any health hazardous addiction such as drinking and smoking as there will be increased risk level for you. Insurance companies in India categorize smokers in three different types, such as preferred smoker, typical smoker and table rated smoker.

A typical smoker is a smoker with minimum health risks and preferred smokers is an otherwise fit smoker whereas table rated smoker is a smoker with a noteworthy physical condition. Person who falls under typical tobacco category will have to pay more premium than a person who comes under preferred and non-tobacco segment. Smokers need to pay higher amount of premiums due to their high health risks. In case people are planning to buy a term insurance policy online, then give complete information of the tobacco usage to insurance companies in India. Insurers will be inquired about how often policyholders have used products like cigarettes, tobacco.

Insurance companies in India have a right to know health status of their applicants. It is a very much important factor on which the insurance company will decide about the premium. Insurers will ask their clients whether they smoke and also want their customers to undergo health checkup. So, it is not easy to hide the traces of nicotine content in tests. Therefore, be honest about smoking habits because smoking is an important factor which insurance companies in India consider while deciding premium amount.

In case customer is submitting wrong information to insurance company in India just to avoid high premium, then policy may end up being ineffective. Insurers have a certain questionnaire to differentiate customer as a non-smoker or smoker. These companies also have cross questionnaire to identify if buyer is an occasional or regular smoker. If customer is on the urge to quit smoking, then inform insurer to reconsider the policy. It will help to decrease life insurance premium which will based on the time elapsed since the insured last smoked.

Sarika Kodag helps readers to select the best

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as she has vast experience in this sector. She always looks out for subjects related to

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and writes informative yet interesting articles on investing, saving and financial planning. Her forte is to comparatively analyze and suggest different insurance policies to her readers.

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