Cigarettes have an unfavorable image, and various advertisements have been created to encourage smokers to quit. Aside from being damaging to your health, did you know that smokers pay more for term insurance than non-smokers? The same can be concluded with the help of a term insurance calculator too and understand that smokers actually pay more premiums for term life insurance due to the fact they are perceived to die prematurely by the insurance company. Owing ideasforeurope to this reason, smokers must get term life insurance because smoking is associated with increased health risk which includes respiratory ailments, cancer, and a lower overall quality of life and a right term life insurance plan assures your family's financial stability even in your absence. In this article, we will understand how a term plan is beneficial, especially to those who smoke.
Benefits of Buying Term Life Insurance for Smokers
Furthermore, while term life insurance premiums for smokers are higher, they are still quite affordable when considering the coverage provided by the insurance company. Here are the benefits of buying a term plan that can relieve the financial stress that will be caused to your family in your absence:
One of the primary benefits of term life insurance is its affordable cost and comprehensive coverage it provides. Even if you smoke, the premium for term life insurance is substantially lower than the coverage it provides.
If you smoke, you may be concerned about providing financial security for your loved ones in the event of your death. Term life insurance provides peace of mind as it can cover financial liabilities in the event of your untimely death. Purchasing term insurance early in life can lead to more substantial savings. An online term life insurance policy can help you maximize your savings and with the help of a term insurance calculator, you can even know the premium payable beforehand.
Note: When purchasing term life insurance, it is usually recommended that you provide all pertinent information to your insurance provider in order to get the benefits from your term policy and to ensure a seamless claim payout. Noncompliance with this rule is considered insurance fraud and may risk your claim settlement. In extreme circumstances, your settlement might be ruled null and invalid which can put your family's financial future at risk.
How do insurers define smokers?
Term insurance companies make no distinction between the type of nicotine that policyholders use or whether they are frequent or infrequent smokers. A smoker is defined as somebody who uses tobacco or nicotine in any form, including cigarettes, cigars, gutkha, beedi, khaini, flavoured pan masala, nicotine patches, or nicotine chewing gum. Insurance companies determine this by asking questions about the smoking habits of insurance applicants; therefore, if you consume tobacco or nicotine products, have used tobacco in the last four years, or have ever consumed a tobacco product, you are deemed a smoker. However, there are still some distinctions that insurance companies and providers offer pre-defined groups for smokers and they are as follows:
Preferred smokers are healthy individuals who smoke. In comparison to the other two categories given below, this one will be charged the lowest premium amount.
Typical smokers are those individuals with slight health issues who also smoke fall into this category. The premium here is slightly higher than the above category.
Table-rated smokers have significant health issues as a result of smoking. This category has the largest premium amount of all three.
Note: If you quit smoking after purchasing your term plan, your premium amount will be recalculated at policy renewal, and the insurance provider may reduce the premium amount based on the period passed since your last cigarette. The new premium amount can be calculated using the term insurance calculator easily for free of charge.
What happens if I start smoking later?
If you have already acquired a term life insurance and later become a smoker, you might be thinking that you do not need to notify the insurer. However, being honest is always preferable in order to avoid future problems. The thing is when you purchase a term plan, whether online or offline, you enter into a legally binding contract with the insurance company.
For example, if you do not notify your insurer that you have become a smoker and anything occurs during the policy period, the insurance company may suspect fraud. They may delay the payout until they can validate the claim request.
Once you notify your life insurance company, they may allow you to continue with your policy or re-evaluate it and change your premium rate accordingly.
So we are saying,
Smokers are usually discouraged from getting insurance because they feel they will be denied coverage or that the term life insurance premium will be prohibitively costly. However, neither of these are valid. A term plan for smokers is denied only in exceptional circumstances when there are obvious serious health concerns caused by heavy smoking the individual has done in the past. On the contrary, insurance companies can help smokers find the appropriate coverage with somewhat different terms and a higher premium amount. However, smokers should not be discouraged from obtaining insurance because they are more susceptible to lifestyle problems. Given this, obtaining the appropriate insurance coverage is critical because it guarantees your family's financial security even when you are not present. When you buy insurance, you must be open about your lifestyle and medical history. Your insurer will issue policy terms and conditions based on the information you give. If they discover that you were deliberately dishonest, they will cancel your coverage and maybe file an insurance fraud complaint against you.
