The premium to be paid for a term insurance plan can be influenced by a number of factors. An individual's health is one of the primary determinants. Insurance providers evaluate various health parameters, including lifestyle habits, to assess a person's health.
Habits such as smoking and vaping serve as indicators of one's health status. These habits can potentially impact the heart and lungs and increase the risk of cancer. Due to this heightened risk, insurance companies consider such habits when determining term insurance rates.
Find out the impact of smoking and vaping on term life insurance premiums.
Why do you pay a higher premium for term insurance if you smoke or vape?
Insurance companies assess an applicant's mortality and life expectancy when determining the premium. Smoking cigarettes or using e-cigarettes like vapes have all been linked to shorter life expectancies. Numerous studies highlight the association between smoking and vaping and various health issues, including heart attacks, strokes, chronic bronchitis and cancer.
Smokers face an elevated risk of contracting illnesses that can significantly impact their life expectancy. Due to the increased likelihood of claims from individuals who smoke and vape, life insurance companies charge a higher premium to mitigate this heightened risk.
As a result, the term insurance premium is always higher for people who smoke than those who do not.
Who is considered a smoker for term insurance purposes?
It is important to understand that the definition of a smoker is not limited to somebody who smokes cigarettes alone. Here is an expanded list that term insurers may consider equivalent to smoking when assessing the premium:
Smoking cigarettes
Smoking e-cigarettes like vapes
Smoking tobacco in pipes
Smoking cigars or cigarillos
Smoking beedis
Using hookahs
Additionally, the use of the following products is also linked to smoking:
Consuming gutka
Consuming pan masala
Using nicotine patches and chewing gums
Ideally, any product containing nicotine poses harm to the body. Insurance companies draw a direct correlation between nicotine use and smoking and may use this information in their assessment when determining the appropriate term insurance premium.
It is also important to note that insurance companies typically categorise applicants as smokers regardless of the frequency or intensity of their nicotine consumption. Whether used occasionally or regularly, individuals who have used these products in the past year before purchasing a term insurance plan are classified as smokers during the insurance assessment process. However, the rules may differ from insurer to insurer, and it is advised that the policy document be read carefully.
Can you buy term insurance if you smoke or vape?
Yes, people who smoke or vape can still purchase term life insurance coverage, but they should anticipate a higher premium due to the associated health risks. Additionally, insurance companies may request a medical check-up to gain a comprehensive understanding of the applicant's health status.
During this process, the company may also inquire about the duration and frequency of smoking or vaping habits, as well as other relevant lifestyle factors.
Points to note for smokers
A term insurance plan is even more critical for smokers and vape users than others, as they are exposed to increased risks. Therefore, you must buy term insurance at the earliest. Here are some tips that can help:
Provide accurate information: A lot of people lie about their lifestyle habits in order to save money and get a lower premium. However, it is crucial to be honest and inform the insurance provider of your lifestyle habits as well as your health history. The insurance provider can reject any future claims linked to your habits if you are found to be lying or providing incomplete information.
Compare premium rates: Term life insurance rates can vary significantly among insurance companies, as each company has its own assessment. Some insurers may offer discounts for longer terms, while others may provide discounts for women. It is crucial to compare rates from different insurance providers.
Using a term insurance calculator can simplify this process and help you select a plan with an affordable premium that meets your needs.
Try to quit: It is crucial to recognise the issues associated with nicotine consumption. Nicotine can wreak havoc on your health, and the sooner you quit, the better off you will be. Not only does quitting benefit your physical health, but it also has financial advantages. By saving the money spent on cigarettes or other nicotine products, you can potentially lower your term insurance premium, all of which can contribute to enhancing your financial health.
To sum it up
Smoking and vaping can have far-reaching consequences on an individual's health. Therefore, quitting these habits may be the best course of action. Meanwhile, you are also advised to purchase a term insurance plan to ensure your family's financial protection in your absence.
