Personal_Finance / Insurance Jun 26, 2018 – 03:31 PM GMT
Before you buy life insurance you need to know that like any kind of insurance policy that you buy the amount of premium that you need to pay depends on various factors. You need to understand these factors before you buy life insurance so that you know how these are connected and also so that you can take the steps in order to reduce on the premium amount that you need to pay.
Buy Life Insurance But Know That The Insurance Company Is There For Business
When you buy life insurance, you need to first decide on the amount of coverage that the cheapest life insurance rates for smokers policy is going to provide and whether it is sufficient for you and for your family in the case of an unexpected death.
There are many things that have to be considered before you reach to a coverage figure. A life insurance company is doing business and it is here to make money. This is why they are more interested in covering those who are going to stay longer and who are going to pay their premiums.
Smoking is a risk to your life and you can die because of various diseases that smoking causes. This is why when you go to buy life insurance the company will see you as high risk if you are a smoker. You thus will have to pay penalty because the company is covering your high risk. This penalty is charged in terms of higher premium.
Since smoking increases the risk of dying it becomes more expensive for smokers to buy life insurance. This is also an incentive or the smokers to buy life insurance because they know that their life expectation is low and thus when they buy life insurance it will help to protect their family.
It is not impossible to find a life insurance company that is ready to offer affordable premium to smokers but that needs a lot of research. You need to buy life insurance plan for smokers from a good company so that your familyâ€™s future is taken care of.
Why Does The Life Insurance Company Charge A Higher Premium Amount To The Smokers?
A smoker is three times more likely to die than someone who does not smoke. Smoking leads to premature death which means that smokers die early.
Life Insurance Smoker Definition As Per The Life Insurance Company?
A life insurance company will term you as a health insurance for smokers India smoker if you use cigarettes, e-cigarettes, hookah or consume nicotine. Even if you chew tobacco you fall under the smoker category.
It is irrelevant whether you have taken nicotine regularly or have smoked occasionally, you are still a smoker. Smokers end up paying almost double the premium as compared to non-smokers. This is why many smokers do not let the insurance company know that they smoke.
The life insurance companies however scrutinise the applicants and their medical history by examining the urine and the blood sample of the client. Since the life insurance company will pay your family in the case of your death, it is important that you be true when you fill in the application form. The life insurance companies are very strict about this factor and this could put you in trouble if the company later finds out that you had hidden the facts.
Lying and hiding the fact could lead to consequences and any misleading information could lead to denying the claim. Being truthful will let you get the benefits of the plan.
Frequently Asked Questions By Smokers Before Applying For A Life Insurance Policy
Before you buy insurance these questions could come to your mind if you are a smoker,
You may be thinking that you would want to wait for some time and quit smoking before you buy life insurance. But understand the danger of waiting too long. Death can happen anytime and it comes unexpected. You may not want to risk your familyâ€™s life by delaying the purchase. If you are a smoker then you are a high risk client and if you postpone buying life insurance it only means that you are risking your familyâ€™s life. Also premium increases with age so what you may want to save may actually increase with age.
The life expectancy ratio is lower for smokers because they are at high risk to die because of cancer or heart problems. Since their life span is short so to cover the risk the insurance company charges higher premium
The extra premium that the smoker has to pay will differ from one insurance company to the other. The health and the age of the candidate is also considered along with his habits.
Lying about smoking on life insurance is as good as a fraud and this could lead to charging you for hiding information and the insurer also has the right to void your policy. The insurance policy that you are buying is to protect your family and you would not want to risk their lives and their finances just to save some money. In case the life insurance company finds out later that you are a smoker and that you had not disclosed it at the time of purchase then they could also deny the claim.
If you stop smoking after you have purchased the life insurance policy then you can ask the insurance company to recalculate the premium amount at the time of renewing the policy. The insurance company could discount the premium amount based on how long it has been since you last smoked.
By Justin Weinger
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