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Impact of Smoking on Life Insurance Premiums
Every responsible adult understands the importance of having a term life insurance plan. These policies provide financial security and stability to your loved ones in your absence. Purchasing life insurance in our digital world has become much easier. ...Read More
1.5 Crore Term Insurance @Rs 28/day*
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You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.
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Return of Premium (ROP) Option^
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Individual Death Claim Settlement Ratio of 99.68%##
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How Does Smoking Impact My Life Insurance Premium?
Table of Content
Who Is Considered a Smoker?
Insurance companies identify any individual who consumes nicotine and tobacco as a smoker. The insurance company will consider you a smoker if you smoke cigarettes, cigars, beedis or vapes. Individuals who consume gutka or pan masala and use nicotine patches and chewing gums also fall into the same category. Remember, insurance companies do not differentiate between occasional smokers and daily smokers.
How Does Smoking Impact My Life Insurance Premium?
Medical research shows that long-term smoking can increase a person’s risk of developing various conditions like cancer, respiratory disease, stroke, and heart conditions. Since individuals who smoke have a higher chance of developing a life-threatening condition, life insurance companies view them as high-risk individuals. To offset the risk factor, insurance companies charge smokers and tobacco users a higher premium for their term life insurance policies. We can understand this better with an example.
Example/Illustration:
Aditya is a 30-year-old man who lives in Mumbai. He lives a healthy lifestyle, eating nutritious foods and exercising regularly. Aditya does not consume any nicotine products. He purchases a term plan with a sum assured of Rs. 1 crore for an annual premium of Rs. 8,000.
His friend Rajesh is also 30. However, Rajesh smokes heavily. When he purchased a term life insurance policy, the insurance company charged him an annual premium of Rs. 11,500 for a sum assured of Rs. 1 crore.
What Happens If I Lie on the Insurance Application?
Many people understand that habits like smoking and drinking can increase their insurance premiums. So, they may lie on their insurance application form. However, this is very risky since the insurance company will thoroughly investigate every claim request. The company will likely discover that the policyholder was a smoker. In such situations, they reject the claim request, which leaves the beneficiary without any financial protection during a difficult time.
The Impact of Quitting Smoking
Quitting smoking has a positive impact on your overall health. After staying off nicotine and tobacco for a number of years, you have to apply for a new policy as a non-smoker. However, you must remember that your age and other health concerns can work against you. Additionally, the insurance company will complete a new medical and financial evaluation before approving your request. While quitting smoking doesn’t instantly mean lower premiums, it does help boost your overall health.
Smoking has a profound impact on the premiums of your life insurance policy. Insurance companies consider smokers as high-risk individuals. So, they charge them higher premiums.
Quitting smoking can help you save on insurance premiums and enjoy a healthier life!
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99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
Disclaimer: By submitting your contact details, you agree to HDFC Life's Privacy Policy and authorize ...Read More
99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
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Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
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Here's all you should know about life insurance.
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HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
HDFC Life does not promote smoking. The content is not intended to provide health advice to individuals about their smoking habits.
@As per integrated annual report FY24-25, available on www.hdfclife.com. As of May 2025
^ Available under Life & Life Plus plan options
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
##Individual claim settlement ratio by number of policies as per audited annual statistics for FY 24-25
***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
**7% online discount available on 1st year premium only
~Tax benefits of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 30% on life insurance premium u/s 80C of ₹ 1,50,000 and health premium (Critical illness rider) u/s 80D of ₹ 25,000. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961. Please consult your tax advisor for more information.
*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, exclusive of taxes and levies as applicable. (Monthly premium of Rs. 834 and daily premium of Rs. 28)
ARN - ED/11/23/6236
