A recent study says your life insurance premium is more affected by your smoking habits than job profiles – jobs with high mortality rates have higher premiums. Report details reveal that smokers in all jobs pay an average of 50% more for their life insurance than the premium paid by non-smokers. That means, on average, a smoker pays rs 650 to rs 850 more per month for their life insurance policies than non-smokers, equating to Rs 8000 to Rs 10000 per year.
Smokers pay a higher premium Life insurance premiums are often calculated based on the profile of the policy seeker. Premium life insurance premiums for people with high risk profiles such as construction workers and prison officers are quite high, people with low-risk business profiles such as bankers and software engineers pay lower life insurance premiums. By sharing each industry on smokers and non-smokers to estimate their premiums, data showed that smoker at a relatively low risk job industry profile will still pay significantly more each month for non-smoker life insurance into a high risk profile.
An important reason why smoking has a much greater impact on life insurance premiums than most jobs has been shown to have a detrimental effect on smoking on human health. Although it is even more likely that even profiles of the highest risk jobs will result in death, smoking is the main reason for a multitude of life-threatening illnesses. Tobacco smoking has long been associated with an increase in incidences of life-threatening diseases such as lung cancer, tuberculosis, heart disease, stroke, bronchitis, infertility and peptic ulcer.
Every year, about 10 million deaths associated with tobacco occur globally, and India alone represents one-sixth of the death. In total, India has more than 120 million smokers, or about 12% of the world's smokers. According to industry experts, the total number of deaths associated with tobacco is expected to be 14 million by 2030 at a global level. When looking for life insurance cover, individuals must always thoroughly review the market in search of the most competitive plans available and if you already have life insurance coverage, you should review it regularly.
Frequency of Use To determine the life assurance premium in the event you are a smoker, the insurer is questioning the frequency of tobacco product use in the past year. This includes all tobacco-based products such as cigarettes, cigarettes, and even chewing tobacco. Based on the information provided by the policy seeker, it is entirely the sole right of an insurer to determine whether an individual is an experienced or occasional smoker. Based on this, the insurer decides on a premium (premium increase) on the life insurance premium or even suspends the policy based on the level of risk involved. If you do not disclose your smoking habits with the insurer at the time of issuance of the policy, this can result in a reduction in your receivables.
In the event that the insured or new buyer provides the insurer with incorrect information on smoking habits under the fear of high premiums, it may be against a life-assured or policy-seeking person. While most insurers ask potential customers about their oral smoking habits, they can even ask for physical examination in some cases or a request for recent history of the disease.
Though it's easy to lie verbally, it's practically impossible to conceal nicotine traces in a medical test even if you are an occasional smoker. To be adequately covered, buyers must be honest with the insurer on their smoking habits because life insurance companies take smoking as a serious clause and are extremely strict about it.
If you are a smoker, you must immediately stop smoking and educating people about the dangers associated with the use of tobacco in any form.