Difference Between Endowment Insurance Premium For Smokers And Non-Smokers

A smoker is someone who consumes tobacco or nicotine in any form, including cigarettes, cigars, gutka, beedi, khaini, flavoured pan masala, nicotine patches, and chewing gum. 

You will be classified as a smoker by the insurance industry if you have smoked tobacco products in the previous 12 months.

Smokers have a shorter life expectancy because they are more prone to chronic illnesses such lung cancer, bronchitis, and heart disease. They may live shorter lives than nonsmokers, making them a riskier proposition for an insurance company.

The types of smokers include: 

Preferred Smoker 

A preferred smoker is someone who is physically active in addition to smoking. This type of smoker has the lowest premium.

Typical smoker

 This is the type of smoker that has a nagging health problem. In this instance, premiums will be slightly higher than for a favoured smoker.

Table rated smoker 

This is a smoker who has a visible health problem as a result of smoking. The premium paid by this sort of smoker on his term insurance policy is usually the highest of the three. This is due to the fact that the person already has a health problem, and the insurance company wants to reduce the risk.

Different Cases Of Smokers Under Endowment Plans

• In Case Of Hiding The Smoking Habit

In case of any discrepancy found in the statements given by individuals regarding their smoking habits, they can be charged with fraud, and the insurer can declare the insurance void and refuse to pay the claim because it violates the clause.

It is advised that you never lie to your insurer about your smoking habits, as doing so could result in your coverage being cancelled.

• Smoking Cessation After Purchasing an Endowment Plan

Although life insurance premiums for smokers are higher than for non-smokers, they are nonetheless affordable. If a policyholder is in the process of quitting smoking, they can ask the insurance company to reevaluate the coverage after a 12-month period of no smoking.

Depending on how long it has been since the individual has smoked, the company may be able to reduce the premium cost.

It is recommended that an insurer stay away from nicotine for at least two years before being classified as a non-smoker.

Take Away

Smokers are more susceptible to health problems since they are more likely to be afflicted by diseases, rendering them ineligible for adequate insurance coverage. However, you must not be enticed by the conditions for non- smokers and lie about your smoking habits.

Also read 

All About Riders In Endowment Insurance Plans

All About Telemedical Check-Ups For Endowment Insurance During Covid-19

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.