The phrase "Smoking is injurious to health" is well-known, but did you also know that smoking may burn a hole in your wallet? When it comes to life insurance, smokers often face higher premiums compared to non-smokers, reflecting the increased health risks linked to smoking. In this article, we will explore the impact of smoking on life insurance premiums in India. Understanding the effects of smoking on life insurance premiums in India can help you make informed decisions about your coverage and get the best possible rates.
Life Cover Starting @ just ₹18/day*
Choose India’s Only Personalised Term Plan
Modify coverage as per your life stages & commitments
Hassle-Free Claim Settlement
99.38% Claim settlement ratio*
Smart Income Tax Savings
Save up to ₹54,600* on your taxes
Insurance companies have clear criteria for categorising individuals as smokers. It's not just about cigarettes; any form of tobacco or nicotine use can lead to higher premiums
In general, if you currently use any nicotine or tobacco products - no matter how frequently or infrequently - you will be classified by insurers as a "smoker." This includes not only cigarette smoking but also cigars, pipe tobacco, chewing tobacco, snuff, nicotine patches/gums, e-cigarettes, vaping, or any other product derived from the tobacco plant.
On applications, you'll typically see questions aimed at identifying smoker status, such as:
So, if you have used any nicotine or tobacco whatsoever recently, it's best to provide complete disclosure to avoid issues. Otherwise, you risk claim denial later on, even if you only smoke or vape "socially" or infrequently.
When you apply for a term life insurance policy, insurance companies will classify you as either a "smoker" or "non-smoker" to assess your rate class and premium amount. Generally, the criteria to qualify for non-smoker designation include:
Conversely, if you are currently using tobacco/nicotine or are within the "lookback period" established by the carrier, you will likely be rated as a smoker.
The primary reason for the smoker vs. non-smoker classification is risk. Statistical data shows tobacco users have substantially higher mortality rates and life insurance claims experience compared to non-users. As such, insurers charge smokers significantly higher premiums - often 1.5 to 2 times higher.
| Aspect | Smokers | Non-Smokers |
| Premium Cost | Pay 1.5-2x higher premium rates due to shorter lifespans and higher mortality rates | Qualify for lowest available premium rates if health is good |
| Underwriting Process | Frequently requires additional medical exams and lab tests to assess risks further; approval delays are more common | Smoother underwriting with a basic exam is often sufficient for non-tobacco users in good health |
| Life Expectancy | On average 13+ years less lifespan compared to peers who don't smoke | Longer average lifespan and mortality age if maintains tobacco-free status |
| Risk Class Factors | Much higher mortality risk observed through actuarial data and claims patterns | Significantly lower mortality risk based on non-smoker pool data |
| Health Considerations | Greater susceptibility to cancers, heart disease, stroke, COPD and smoking-linked conditions | Avoiding tobacco lowers the odds of these illnesses later in life |
| Claims Payment | Intentionally hiding smoking risks the rejection of death benefits to beneficiaries. | Higher likelihood that payout goes to beneficiaries smoothly. |
Smokers typically pay significantly higher premiums vs. non-smokers for identical term life insurance policies - often 1.5 to 2 times more. There are a few key reasons tobacco users are assessed much costlier rates by insurers:
While it may be tempting to conceal smoking habits to secure lower premiums, the repercussions can be severe. Here's an easy-to-understand look at the consequences:
If medical records show smoking you didn't disclose, the insurer can refuse to pay out any death benefit. Even if the death cause is unrelated to smoking, hiding this violates the policy terms. Your beneficiaries would get no money.
If fraud about smoking status is revealed, the insurer may void the entire policy. Premium payments would be partially refunded but without the future security intended for loved ones.
If relatives try finding new coverage after smoking deception is caught, it can be very difficult and expensive. Insurers industry-wide see big red flags around intentional misrepresentation.
While being honest about smoking costs more upfront, it deeply protects families later if income replacement is needed. Saving a little money now risks their future financial well-being. Tell the whole truth.
While smoking may seem tempting, it has far-reaching consequences, not just for your health but also for your finances. By quitting smoking, you not only enjoy financial savings but also reap the long-term health benefits of a smoke-free lifestyle.
On the other hand, hiding tobacco usage from your life insurance company poses huge financial risks that often surface when families later file claims. Insurers can legally outright deny payouts and cancel policies if undisclosed smoking is revealed after death. When applying, tell your insurer the complete truth about any nicotine use - no matter how minor or "social" it may be. The peace of mind is well worth the small ongoing premium increase.
1.5K Linkedin Followers 
Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
Products 
Company
Legal
Support
Car Insurance 
Bike Insurance
Health Insurance
Group Health Insurance
Travel Insurance
Life Insurance