How smoking impacts Life Insurance premiums in India

financialexpress.com:

Life insurance is a vital financial tool that provides financial security to your loved ones in case of your untimely demise. However, when applying for life insurance, many factors come into play to determine your premium amount. One of these crucial factors is whether or not you smoke. In this article, we will discuss how smoking affects life insurance premiums in India.

Smoking indeed has a significant impact on life insurance premiums due to the well-documented health risks associated with the usage of tobacco. When individuals opt for life plans, the insurers meticulously evaluate an applicant’s risk profile to determine the appropriate premium cost. Smoking is considered a high-risk behaviour that can likely lead to a variety of health issues, including heart disease, lung cancer, and respiratory problems. This increased risk therefore translates to varied premium rates than normal cases.

In the eyes of life insurance providers, individuals who smoke are more likely to have health problems and a shorter life expectancy compared to non-smokers. Therefore, smokers are generally charged higher premiums to compensate for this increased risk. The difference in premium rates between smokers and non-smokers can be substantial.

If you are a smoker applying for life insurance in India, you can expect to pay significantly higher premiums than non-smokers. The exact increase in premium can vary depending on various factors, including the type and amount of tobacco you use and your age. On average, smokers may pay 50% to 100% more for their life insurance premiums compared to non-smokers.

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While the impact of smoking on life insurance