How smoking affects your health insurance premium – The Financial Express

From banning smoking in public places to placing unsavoury pictures on cigarette packets and levying high levels of tax on the purchase of cigarettes, multiple attempts have been made to nip the habit of smoking. Yet, people persist.

To say that the government has taken exhaustive measures to dissuade people from smoking would be an understatement. From banning smoking in public places to placing unsavoury pictures on cigarette packets and levying high levels of tax on the purchase of cigarettes, multiple attempts have been made to nip the habit of smoking. Yet, people persist. Inarguably, there are several ill-effects of smoking.

Impact of smoking on your health insurance policy

The first and foremost impact of smoking is on your health. A smoking habit can impact your health in myriad ways and can be the root cause of grave ailments like oral cancer, lung cancer, coronary heart disease, weaker bones leading to arthritis, etc. Correspondingly, smoking is also a very expensive habit and can be a slow drain on your finance.

In addition to health and economic cost, there is another very important aspect of your life that gets impacted by your smoking habit. This is the impact on your life and health insurance premium. This is how your insurance policy might be affected.

Higher rate of premium: It is well-known that smokers are at a higher risk of contracting a wide array of diseases and are more likely to succumb to complications. As a result, they would typically fall into the high-risk bracket which means that for an insurer the probability of making a payment on a smoker’s policy increases. To compensate for this risk, insurance companies would usually charge smokers a higher premium amount.Exclusions: Some insurance companies or policies might entirely exclude smoking-related ailments from the scope of coverage. These exclusions will be mentioned in the policy, and you must definitely focus on the working of the policy at the time you are purchasing a health insurance plan.

Buying the right health insurance policy

Due to the above reasons, you might be tempted to provide false information to the insurer while filling up your form and incorrectly state that you are a non-smoker even if you are a smoker. Let me warn you that you must never make the mistake of falsifying information on your insurance form. This can have widespread ramifications.

Firstly, it could be considered a case of fraud, and secondly, the policy might not be able to help you in your time of need. When you make an insurance claim, the insurer follows a process to ascertain the veracity of the claim. In the case of a suspicious claim, an investigation is launched. If the investigation leads to the conclusion that you have shared false information with the insurer, then your claim will be rejected. Not only will you be left in a tricky position in your time of need, but even the premium amount spent will also go down the drain. So, choose wisely.

Further, you should not be misled by the myth that just because you are a smoker your insurance policy will get rejected. Every individual has the right to purchase a health insurance policy irrespective of age or pre-existing health conditions. Inarguably, if you are a smoker the premium that you pay on your health insurance policy will increase. However, this increase in premium should not act as a deterrent. Considering that if you are a smoker, you are already susceptible to a wider array of diseases, don’t let the higher premium deter you from the right decision of purchasing a health insurance policy.

Inarguably, smoking is a habit that is challenging to kick. Yet, as is evident, it can negatively impact both your health and your wealth. Thus, it is important that you persist in your endeavours to quit smoking and seek help if required.

By, Raghavendra Rao, Chief Distribution Officer, Future Generali