How Can Personal Habits Like Smoking Affect The Premium Calculation?
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Life insurance policies are available for smokers and non-smokers, but smoking can impact your health and the premium calculation for life insurance policy. Life insurance companies in India have different terms and conditions for life insurance policies for smokers and non-smokers. It is said that a person who has a daily habit of smoking, is bound to have a higher premium rate as compared to a non-smoker, the reason behind this is that a person who smokes on a regular basis is considered with high risk as smoking can cause some serious health issues.
According to the terms and conditions, people who consume tobacco, cigarettes, cigars, gutka, pan masala etc. are referred to as smokers. At the time of risk evaluation, insurance companies request medical records and examinations. In case the person who smokes declares that he/she smokes at the time of filing the insurance proposal form, it increases the amount of premium for their life insurance policy. The reason behind this is that a person who consumes tobacco on a regular basis is bound to have chronic diseases because of this habit.
How Can Personal Habits Like Smoking Affect The Premium Calculation?
Smoking on a regular basis can cause chronic illnesses such as lung cancer, throat cancer, bronchitis, heart disease etc. which results in the development of such diseases in a person which can cause a shorter life expectancy as compared to a non-smoker. Since people who smoke on a regular basis are considered with low life expectancy, the premium for their life insurance policy increases because rate of dying is a crucial factor which is considered while calculating premium for a life insurance policy.
What Happens If You Hide Your Personal Habits Like Smoke While Purchasing A Life Insurance Policy?
To dodge higher premium rates, many people who smoke on a regular basis may lie to the insurance provider about their habits. One can hide their smoking habits on a life insurance proposal form but they cannot avoid medical examinations where nicotine traces can be detected in the urine or blood samples. One should know that lying about personal habits like smoking can lead to consequences such as fraud charges or in worse case policy termination. In case the life assured passes away due to smoking habits which were concealed at the time of policy issuance, the nominee could be denied with a claim request.
It is always advised to declare personal habits like consumption of tobacco or alcohol at the time of policy issuance or at the time of filing a life insurance proposal form, it can eliminate the risk of claim denial, fraud charges or policy termination.
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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.
