Off late people are getting more aware of term insurance and these days we are seeing more number of people interested in taking term insurance policies thanks to the financial gyaan shared over websites and innovative ads by the insurance companies and this phenomenon should be welcomed warmly. As more number of people getting interested to take term insurance it is obvious that more number of questions would be raised and me at MintInvestor had made an attempt to answer Frequently Asked Questions (FAQ’s) on Term Insurance and today I would like to take a chance to answer the queries for people who are smokers and are interested in buying a term insurance plan. To say in short Term Insurance for smokers is accepted by the companies pertaining to the terms and conditions and with additional premium.
Term Insurance for Smokers & Frequently asked Questions
Can a person who is a cigarette smoker or tobacco consumer for products like gutka buy term insurance?
Yes, a person who is smoker or consuming tobacco in any other form will be able to buy term plan by declaring the same at the time of proposal and by paying higher premium while it’s a no surprise as the insurer will have to cover the risk of your habit.
I smoke occasionally; do I need to declare that I smoke?
Yes, you still have to declare that you smoke and usually insurance companies treat both heavy smokers and occasional smokers same and usually even in the proposal application form you will have a field that asks “have you consumed any of the tobacco products in last 12 months?”
I used to smoke but left smoking now, how should I declare myself?
While it is good that you left smoking, it is important to note that most insurance companies would treat you as a smoker if you have left smoking within 12 months (for few companies it is 3 years, please check with the choice of your company before taking the call) and for those who have left the habit before 3 to 5 years are assured and can be declared as non-smoker at proposal stage.
I have left smoking after taking term insurance, can I ask the company to decrease premium?
While the above answer helps you in understanding the applicability and differentiates between a smoker and non-smoker, and in case if you can be considered as a non-smoker you can ask the insurance company to review the terms and the company have a right to consider you request and might decrease the premium by taking a fresh proposal and the new premium might be dependent on your age (few companies are good enough to consider you as a non-smoker with prevailing rates, it depends on the insurer and might turn lucky enough if they consider).
Terms and conditions for Term Insurance for smokers are completely different when compared to regular people, asking the company for a review is always a good idea and you can also explore the options of getting a fresh policy issued on your name if the premium is within the limits of your earlier policy when you bought term insurance being a smoker.
What will happen if I declare myself as a non-smoker even if I smoke?
At the time of health check-up insurance companies will be conducting few prescribed medical tests to determine if you are smoker or non-smoker and any false declaration in your proposal form can lead to rejection when a claim arises and hence it is important to disclose about smoking habits (for the case of applicability it is same for other fields like disclosing health conditions, family history, etc.) while filling your proposal form.
Term Insurance for smokers will be rejected in this case for not being honest and if accepted the chances of getting rejection when there is a claim is quite high.
How can I find an affordable term plan for smokers?
It helps to get quotations from different insurers which can be done easily by using policy comparison aggregator websites and choose the company that you are comfortable with.
I am an alcohol consumer and a non-smoker, what should be my case?
If you don’t smoke and is a drinker you can declare yourself as a non-smoker, however make sure that you declare about your alcohol habits in your proposal form to avoid rejection if there is any claim.
I drink and smoke and how the insurer will treat me?
If you are alcohol consumer and smoker you should declare the same in proposal form and not that it is compulsory but please don’t be surprised if there is any premium loading.
Between Us: I have tried my best to cover all the queries a smoker could have about term insurance, however in case if you have any other questions that needs personal attention please feel free to shoot your questions and I will try my best to answer. In case if you have already taken term insurance please share your buying experience so that people will get to know about the real processes that are in place.