Smoking has always been one of the social evils that the government is trying to deal with. With imposing steep taxes on cigarettes and other tobacco products, to imposing a ban on smoking in public, the government is trying enough to discourage smoking. Placing gruesome pictures showing the harmful effects of smoking on its packaging is a part of these efforts to dissuade people. It is safe to say enough efforts are being made to nip this habit, yet it persists.
Movies have always glamorised this habit, however that is reel life and not real life. You must have heard countless times that smoking as a habit is bad for your health. Not only that, it is the root cause for several ailments like oral cancer, lung cancer, coronary heart diseases, weakening of the bones leading to arthritis, etc. It also has an economic impact by way of financing this vice followed by costing you when buying a health insurance policy.
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To simply state, smoking and health insurance plans aren’t the best of friends. But there is a common notion that smokers cannot avail health insurance covers. That isn’t entirely true. Health insurance coverage is available for people who smoke, but severe cases of smoking can be valid grounds for an insurance company to reject an application. These rules have been laid down by the regulatory, the Insurance Regulatory and Development Authority of India (IRDAI). *You can visit the official website of IRDAI for further details.
How does smoking affect your insurance premiums?
- Bump in premiums
It is known to all that people who smoke are naturally at a higher risk of contracting the above-mentioned illnesses, and it may even lead to complications in the long run. The probability of a person resorting to smoking raising an insurance claim is higher as compared to those who don’t. This results in classifying such individuals as high-risk persons. To cover this increased risk, insurance companies levy a higher premium.
It is important to note that these premiums are not charged at a flat rate, but depend on the intensity of the habit. In many cases, the policyholder may be required to undergo a medical test to determine the probable effects that the body is starting to show and accordingly determine the risk for such an individual. Hence, the premiums for two individuals that smoke can be different.
Alternatively, in some cases, there is no differential pricing, but the insurance company may charge a higher rate based on the consumption level above a specified threshold.
- Exclusion form coverage
Other than increasing the premiums, insurance companies might entirely exclude any coverage for smoking-related ailments. This is not the case for every person who seeks coverage by way of individual or health insurance plans for family, but only for those individuals above a certain threshold of smoking. Any such exclusions are mentioned by the insurance company in the policy document and while buying one, you need to be aware of it.
If you smoke, the above effects of smoking on your premium would tempt you to provide false information or conceal it. But, keep in mind that a subsequent diagnosis at the time of claim can lead to rejection of your entire insurance claim. Hence, it is best to not lie about smoking-related habits when buying an insurance plan. *
A health insurance premium calculator is a handy tool that you can use to determine how much smoking impacts your premium along with comparing the available options for you. *
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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.