Smoking is a serious concern in today’s world as it gives rise to many chronic diseases of the heart, and lungs and even causes cancer. According to the World Health Organisation (WHO), over 8 million people die every year due to tobacco use. Out of this figure, around 1.35 million people indulged in second-hand smoke. To promote good health among citizens, many countries have announced smoking bans in public places. Most recently, in November 2023, France announced that while it already has 7200 tobacco-free designated areas, it would still ban smoking near schools, public parks, forests and on beaches.
For securing your life and ensuring your loved ones are shielded from risk, taking an insurance plan is mandatory for smokers. Let’s understand what this means in the context of insurance.
Do I have to pay more premium if I smoke occasionally?
Yes, of course, but the premium is higher than that of non-smokers as they are more likely to raise a claim. Smokers are considered to be at high risk by insurance companies whether they consume nicotine patches, gum, or other tobacco products.
Based on the quality of a smoker's life, they are classified into two categories: current smokers and former smokers. Current smoker comprises two classes: every day (or regular) smoker and someday (or occasional) smoker. Occasional smokers are advised to choose health insurance plans that are in sync with their lifestyle preferences.
Why do smokers pay a high premium for insurance?
It is no surprise that smokers are susceptible to being diagnosed with critical illnesses of heart stroke and even premature death. Naturally, they are a bigger liability for an insurance company as if the health of the insured affects or deteriorates, then they would have to issue the claim to their nominee.
Insurance is a legal contract between the insured (or policyholder) and the insurers. If a person indulges in smoking socially for some days, then the person will be defined as an occasional smoker. There is less impact on insurance premiums for occasional smokers as compared to the premium cost for table-rated and everyday smokers.
Does your insurance premium go up if you’re an occasional smoker?
Depending on the number of cigarettes or the extent of smoking a person indulges in, the premium cost differs. The occasional smoker insurance premium is much less than the insurance premium for regular smokers but is substantially higher than that of non-smokers.
Hence, the smoker who is willing to take a policy goes through a medical test before purchasing it. This helps the insurer to determine their current health and the premium amount.
What if I start smoking after taking insurance plans?
Suppose the insured starts taking alcohol and tobacco products to an extreme level and then suffers from some medical complications and ailments, the health insurance company will not give any claim amount.
The same applies when an insured person hides his medical condition or pre-existing illness from insurers and lies about existing smoking habits. In such a case, it is deemed as a breach of trust by the company and the concerned person would face severe consequences.
In a nutshell, if you quit smoking, your insurance premiums will be lowered and it will benefit you more. Depending on the lifestyle and health factors of the insured, the insurance plans and their premiums differ but it is mandatory to have the right insurance plan to ensure financial stability.
