Don't believe the hype: smokers can secure term insurance

Date : 20/06/2023
Read: 3 mins

Factors such as health condition, premium rates, and disclosure play a crucial role in determining coverage. By taking necessary steps, smokers can secure term insurance.

A common misconception is that smokers are not eligible for insurance.
Smokers can buy term insurance, albeit with a higher premium.
Disclosure of smoking habit is the most crucial part of this purchase.

Are you a smoker wondering if you can get term insurance? The answer is yes. Smokers and tobacco users can obtain term insurance, with leading insurance companies offering policies tailored to their needs. However, there are important considerations to keep in mind. Let's explore.

Also Read: These are the key factors shaping your life insurance premium

Term insurance for smokers

While almost all leading insurance companies offer term insurance for smokers, there may be some differences in the issued insurance policy.

Smoking is injurious to health. People who smoke are at risk of developing health ailments sooner and are more susceptible to lifestyle diseases. For insurance companies, the risk of receiving a claim from a smoker is higher. Therefore, it is no surprise that the premium of term insurance for smokers is higher than a regular term plan’s premium. Besides, the insurer may insert additional terms and conditions for this reason.

Smoking, for the purpose of insurance, also includes cigars, snuff and spit tobacco. However, your term insurance provider may distinguish you based on your health and propensity to smoke.

Preferred smokers are people who smoke but don't have any health or fitness issues. Their premium will not be very high as a regular term plan’s premium.

Then there are typical smokers who have health issues. The premium in their case will be higher. Table-rated smokers have more obvious health issues and healthcare needs. They must pay the highest premium among all three smoker categories.

Also Read: You may not know this about smoking and health insurance

Disclosure is important

The fact that you smoke is not as important as the act of disclosing it. In other words, if you smoke, you must disclose it at the time of buying the policy. Misrepresentation of facts can lead to the rejection of a claim. In such a case, the premium paid, albeit lower, would go in vain.

If you start smoking after the policy commences, you are not bound to disclose it. However, claim settlement in these cases can take time. So, it is always better to disclose your new smoking habit to the insurer.

If you quit smoking, it's unlikely to affect your existing policy. However, after a few years of quitting, you can apply for a fresh policy as a non-smoker. Even in this case, disclosure of your past smoking habit is recommended.

Parting Thoughts

Choosing to say no to nicotine not only benefits your health, but also improves your chances when it comes to insurance. Whether you're a smoker or a non-smoker, it's crucial to compare quotes from multiple insurers to find the right health insurance policy that meets your needs and provides adequate coverage.