Term life insurance is the most straightforward and affordable type of life insurance policy. Insurers consider several factors when determining the premium cost for a term plan, with smoking status being one of the most significant.

Does Premium Cost Differ For Smokers and Non-Smokers?

A person’s smoking habits are a significant factor in determining the premium cost for a term life insurance policy.

High Premium For Smokers: Smoking habits increase the risk of developing more health issues and a shorter life expectancy. Smokers expect to pay approximately 2 to 3 times higher premiums for similar coverage.

If you are considering purchasing a term plan, a term insurance calculator India can help you estimate the right coverage amount and premiums based on your personal details and financial requirements.

Lesser Premiums For Non-Smokers: Non-smokers are less likely to develop serious health issues and have longer life expectancies. Hence, they enjoy premium benefits. Low premiums make term policy more affordable for non-smokers.

Classification for Smokersd and Non-smokers

The premium cost of any policy is determined by your health, lifestyle, smoking habits, etc. You may be an occasional, periodic, or other smoker, and the insurer will classify you into a category first and then determine the premium cost.

Smokers are classified based on their use of tobacco products like cigarettes, pipes, cigars, and even nicotine replacement products. Classification will further break into occasional or regular smokers. Occasional smokers also get more premium benefits than regular ones.
Non-smokers are classified as having no tobacco use. They must abstain from all tobacco and nicotine products for at least 12 months. Premium costs will be reduced further if non-smokers meet other health and lifestyle criteria.

Underwriting Process By Insurers

To decide the premium cost, policy buyers must have to go through a medical exam and questionnaire. If you find out you are a smoker under the exam, you may face additional scrutiny regarding your smoking habits and history.

Nicotine test: To determine your smoking habit, a urine or blood test will be conducted to test the nicotine presence in your body.
Comprehensive evaluation: Insurers will assess your and your family’s medical history, lifestyle choices, etc. Non-smokers with good health will qualify for better rates.
Smoking impacts underwriting decisions: Smoking increases the risk of getting diseases like heart attack, respiratory illness, cancer, etc and hence requires an increase in the premium cost.

Is There Any Potential For Premium Reduction For Smokers?

If smokers decide to quit smoking to get an affordable policy for the security of their family’s financial future, they must remain tobacco-free for at least 12-24 months.

After this period, insurers may re-evaluate their health and adjust the premium costs accordingly if significant improvements are observed.

Conclusion

Smokers face higher premiums and more stringent health evaluations due to the increased health risks associated with tobacco use. Non-smokers get more significant premiums, coverage, and flexibility benefits, which make the policy more affordable. Smokers can quit smoking, apply for re-evaluation and get the benefit of securing affordable term life insurance.