How Does Smoking Affect Your Life Insurance Policy?

Life insurance companies consider several factors related to your health before offering you a suitable policy. Your habits, diet, and lifestyle may impact the Life Insurance you select. For instance, smoking can affect your chances of getting insurance or lead to higher premiums.This article explains how smoking can impact your Life Insurance policy.

life insurance policies ensure your loved ones have financial security in case of your untimely death. The word 'untimely' is important here. By concept, Life Insurance covers only situations that you cannot control. And while smoking can qualify as a form of intentional self-harm, it is a grey area in insurance. It falls between what is and is not acceptable.Smokers are known to have shorter life expectancies than non-smokers since it is one of the key factors that increases a person's risk of developing a variety of heart and lung ailments, including fatal conditions like cancer. Hence, insurance companies often charge smokers a higher premium than non-smokers to account for such risks.Among those who smoke, the premiums are higher for people who have already developed health conditions. Insurers rarely consider the frequency of smoking to decide on the policy issue. Also Read: What you should know about applying for Life Insurance with Pre-Existing medical conditions.

Life Insurance providers consider anyone who has smoked or has consumed tobacco or any other nicotine-related products in the past 12 months as a smoker. It includes consumption in any form, including:

• Cigarettes
• Vapes and e-cigarettes
• Bidis (thin hand-rolled cigarettes)
• Cigars
• Pipes
• Hookahs
• Chewing tobacco
• Nicotine replacement therapies (patches, lozenges, gum, inhalers, nose sprays)

Also Read: Does my lifestyle affect Life Insurance coverage?

You may be thinking – would it not be easier not to disclose your smoking habits to your insurer and pay a lesser premium?Well, you would pay a lesser premium, but it isn’t worth the risk you take by withholding information about personal habits that are crucial in the insurance process.There are several ways in which your insurer can gain insight into your health conditions. This can be through a pre-medical examination, doctors’ records and prescriptions, past life insurance applications and test results.Your insurer can even conduct a specific exam to determine whether you are a habitual smoker. Certain tests collect results by examining nicotine traces in your hair, urine, saliva, etc.If your insurer determines that you have hidden certain information related to smoking, your Life Insurance policy could be deemed null and void, and you may also be charged with fraud. You may even be penalised and asked to pay a certain sum for a false declaration, depending on the severity of the situation.That is why it is important to be as transparent as possible while revealing personal habits when buying a Life Insurance policy . Doing the same will ensure a smooth claim process as well.

Suppose you are a smoker with health issues like bronchitis, diabetes, low blood pressure, etc. In that case, your insurer might adjust the premium, depending on the severity of your condition. Additionally, they may impose a waiting period, even if smoking isn't the primary reason for your degrading health. Also Read: How does medical history affect your Life Insurance?

You must inform your insurer if you quit smoking before signing up for Life Insurance. In this case, the insurer will consider the harm caused to your body previously while eliminating probable damage to the body in the future because of smoking. In most cases, if there's no severe damage to your body when you decide to quit smoking, they slightly lower the premium.There is even a chance that your premiums will reduce if you quit smoking after buying a Life Insurance plan. However, insurance companies have their own rules about such cases. Most will only consider you a non-smoker if you have stopped smoking for at least one or two years. You can discuss the same with your insurance provider while purchasing the policy.

• Smokers are high-risk customers for Life Insurance providers, so they charge higher premiums in such cases.
• You are a smoker if you have smoked or consumed tobacco-related products in the past 12 months.
• Smokers normally pay a greater premium than non-smokers, although the amount depends on how frequently they smoke.
• Quitting smoking before or after purchasing Life Insurance can lower your premium.
• It is not wise to hide any information regarding your smoking habits from your insurer, as it could complicate your claim process.

Also Read: Importance of Life Insurance at every stage of life