Did you know that there is a special term insurance for smokers?
Many insurance buyers in India do not have any idea about it. But if you are a smoker intending to get term insurance, you can avail of these policies by providing all appropriate information regarding your smoking habits.
With that said, it is crucial to note that premiums charged to smokers can be higher than those who do not smoke. You can easily calculate the premium by using a term insurance calculator.
Here is some more information about it that will help you get the best term plan for smokers.
Categorisation of Differential Smokers by Insurance Companies.
Generally, the insurance company categorises smokers in the following way-
- A regular smoker: An individual who smokes and has minor health problems because of it.
- A preferred smoker: An individual who smokes but is fit and healthy irrespective of it.
- A table-rated smoker: A person who has intense health issues because of his smoking habits, and smokers in the category are charged a higher premium due to the higher level of risk involved.
Features of Term Insurance for Smokers
| Information | Range or Condition |
| Minimum age of entry | 18 years |
| Maximum age covered by the policy | Up to 75 years |
| Minimum policy term | 5 – 10 years |
| Maximum policy term | 30 – 40 years |
| Minimum Sum Assured | Rs 3 lakhs – Rs 50 lakhs |
| Maximum Sum Assured | No limit |
| Premium payment frequency | Annual |
| Residency requirement | Person should be a resident of India residing in India |
| Death benefit | Sum Assured will be paid to the nominee in case of death |
| Maturity benefit | No benefit will be paid at the end of policy term |
| Note | Maturity benefits may vary depending on the company’s policy |
Please note that while buying term insurance for smokers, people often hide information or lie on the application to reduce their premium amount. This is a terrible act and can have dire consequences. You must not hide any health-related information while purchasing a term plan.
Consequences of Withholding Information-
- The company could hold individuals liable for insurance scams if they withhold any relevant information
- The policy could be cancelled or could be declared invalid
- It can lead to the denial of benefits that policy might have promised to offer
How To Use The Term Insurance Premium Calculator?
A term insurance calculator is a free online tool that calculates the possible premium amount for a particular term plan. Here is how you can use the term insurance premium calculator.
- Visit any insurance company’s website that makes a free insurance calculator available. Tata AIA term insurance, for example, offers free premium calculators for customers.
- Provide the details as asked on their official page, including name, gender, date of birth (DOB), and mobile number.
- Provide details such as smoking details, educational qualification, occupation, annual income, number of years that you’re planning to work, expected percentage of increase in your income, percentage of income that you spend, term insurance benefits, risk, illness, riders needed, etc. This information may differ based on the insurance company.
- Once you make all your input, the term insurance calculator will consider all the factors and, based on them, shall provide you with relevant quotes for the term plans.
How Does the Calculator Help in Determining the Most Affordable Premium?
- A term insurance premium calculator gives you the right amount you need to pay to get the goal-based sum assured, considering all risks and market status.
- It helps you compare different coverages against the applicable premium amount, which helps you choose the plan worth your money.
- Once you provide all the accurate and realistic information asked by the calculator, it assists you in making an informed decision without any influence.
Conclusion
Now you know that even smokers can get a bespoke term insurance plan. But unlike standard term insurance policies, the term plan for smokers has a higher premium for the inevitable risk of smoking. But the best advice for anybody out there would be to abstain from smoking and other unhealthy habits. It is injurious to health.
