Life insurance is a form of insurance wherein a policyholder pays a regular amount of money called an insurance premium. The family of the deceased policyholder will receive this premium along with the sum assured.
Many-a-times, it happens that customers hide the fact from insurance companies that they are addicted to smoking. However, a pre-conditional health check-up, reveals the truth. Concealing of information may complicate the policy claim process if the insurance company finds out the truth after the death of the insured.
A smoker has a probability of dying earlier in comparison to a non- smoking person. Keeping this in mind, the insurance companies are now in the market with an array of Life Insurance for Smokers.
Therefore, any individual who has a habit of smoking should avail of a specially designed Life Insurance for Smokers.
Categorizing smokers into different types or kinds depends on their smoking habits. The insurance companies have differentiated smokers into three different categories:
Smoker of this kind faces minor health problems. In this case, the premiums charged will be slightly costlier in comparison to a preferred smoker.
Smoker of this kind is the one who is overall fit but with a habit of smoking. This smoker pays the least premium.
Smoker of this kind has a severe lousy health condition due to smoking. Since the person is already facing a health issue, the insurance company looks towards minimizing the risks. Therefore, the premium paid by this kind of smoke, as well as is a life insurance plan term, is the highest among all three types.
The insurance companies have come up with a variety of plans for Life Insurance for Smokers. Listed below are some of the plans which are preferred by smokers. These plans also include penalties for providing incorrect information to the insurer, not considering whether one is smoking or not. Also, premiums charged to smokers are generally higher as compared to the regular insurance premiums because of the involvement of a high level of risk.
|Name of the plan||Annual Premium (Rs)|
|Digi Life Plan||8,860||5,980|
|Online Life Plan Plus||7,975||5,674|
|Life Shield Plus Plan||10,495||7,396|
|IProtect Smart Plus Plan||12,130||6,840|
|3D Life Plus Option||12,112||6,827|
|Supreme Life Maha Raksha Plan||9,918||7,680|
|Protect Goal Smart Life Plan||6,227||4,469|
|Mera Life Plan||8,329||6,264|
|Life Plan + I Select||8,205||5,198|
|Life Plan + Zindagi||7,221||5,045|
|Online Flexi Life Plan||7,974||5,269|
|Smart Comprehensive Life Plan||10,084||8,135|
|E-Shield Life Plan||14,413||8,537|
Life Insurance for Smokers' plans varies from one insurance company to another. But here are some of the general characteristics of this Life Insurance for Smokers policies:
The maximum period of policy coverage - 75 years of age
Minimum policy term – anywhere between 5 to 10 years
Maximum policy term – anywhere between 30 to 40 years
Minimum sum assured – anywhere between Rs 3 lakhs to Rs 50 lakhs
Maximum sum assured – Limitless amount
A person can apply online as well as offline for buying Life Insurance for Smokers.
The online procedure is simple enough. One can visit the insurance company website, follow the steps for application, upload related documents, choose an online mode of payment, and pay the premium online. The policy reaches the insured via email.
For offline applications, a person can approach an agent and fill-up the form after choosing a particular plan. Submit the related documents and a cheque or cash towards payment of the first installment of premium. The agent then visits the nearest branch office of the company and completes the procedure. The insured gets the policy via an agent or at home.
The nominee shall receive the sum assured if the policyholder dies during the policy period
Unless the company policy, if the policyholder stays alive till the end of the policy period, there will be no maturity benefits to the nominee
It is a plan which secures the policyholder's family in case of death, a disease, or a disability. The plan must be highly cost-effective and comprehensive enough to make sure that the policyholder's family is cared for with the sum assured payment.
Upon finding a client to be concealing any information regarding the habit of smoking or any health issue relating to it, the client could face the following charges:
Holding back any information can also lead to a cancellation of the policy, or the company may declare it as invalid
Retaining any information can also lead to a company's denial of imparting the policy's maturity benefits
If a person has given up smoking for more than a year, the insurance company must be informed to lower the premiums. However, the insured may have to submit medical proof. Also, in such a case, the insurer may offer a new competitive plan to the insured.