How Do Term Insurance Plans Differ for Smokers?

• 3rd May 2019
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If you are a smoker then you are not only digging a hole in your pocket by spending on cigarettes, but you are also increasing the chance of an early demise. This is why it is even more important for you to get a life insurance plan because you surely do not want your smoking habits to affect your family. Insurance for smokers works a little differently as compared to the term insurance for non-smokers. When you are buying term insurance, it is important that you declare your smoking habits beforehand or it might result in a rejection of an insurance claim later. Moreover, the mandatory medical test before you can buy the term plan will reveal that you are a smoker.

One thing that insurance providers know is that smoking habits can have different effects on different people. Moreover, not all smokers have the same habit regarding how many cigarettes they smoke. This is why; the term insurance for smokers comes in three different categories as listed below.

1. Table Rated Smoker

This category is for the people who have serious pre-existing health condition as a direct result from smoking. They have to pay the highest amount of premium because the risk of death is higher for people under this category.

2. Typical Smoker

This category is for smokers who have minor persisting health conditions. The premium amount to be paid by smokers under this category is slightly lower than the Table Rated Smoker category.

3. Preferred Smoker

This category is for the smokers who are otherwise fit and they have to pay the least amount of premium compared to the other two categories.

How the term policy works for the smokers

To buy term insurance for smokers, you need to inform the policy providers about your smoking habits. They will ask you about how much you have smoked in the past one year. This also includes chewing tobacco or smoking it in any form. This information, along with the medical test results help them determine which category of smokers you fall in to. The kind of term plan you get and the value of premium will depend on that. You might be tempted to misinform about your smoking habits, but that really does not work the way you hope it to be. The medical test always reveals the truth. So, be honest about your answers and hope for the best deal.

Important information regarding the insurance for smokers

There are a few things about a term plan for smokers that you need to keep in mind while applying for the policy.

• The minimum age for buying a term policy for a smoker is 18 years. The maximum age is 75-years
  
• You will have to get a term plan for a minimum period of five-ten years
  
• The maximum available term is 30-40 years
  
• The minimum sum assured you can get is INR 3 lakh. The maximum amount depends on your needs
  
• If you survive the maturity date of the policy then you will not receive any benefits
  

Finding an affordable life insurance for smokers is not as easy as it is for the non-smokers. Hence, if you are a smoker, it is advisable to quit this unhealthy habit and work towards a healthy lifestyle.

- A Consumer Education Initiative series by Kotak Life