It is common knowledge that smoking is injurious to health. However, smoking can also prove to be a cumbersome burden on your wallet in more ways than one. This is because smokers end up paying higher premiums for term insurance policies than non-smokers do.
What is Term insurance
Term insurance is a kind of life insurance policy in which the insured person enjoys coverage for a fixed period of time called the term in return for a nominal premium. Once the term is over, the insured person has to either renew the policy with a different premium or forego insurance coverage altogether. This is different from a permanent life insurance policy in which insurance cover is provided throughout the lifetime of the insured in return for a premium which is often much higher than that of a term insurance policy. Term insurance policies are among the most popular insurance plans as they provide the greatest amount of insurance cover relative to premiums.
Can Smokers Get Term insurance?
The short answer to that question is yes, they can. The long answer is that having a smoking habit, even a moderate one, is going to spike up your insurance premiums more than having a high-risk job will. Insurance companies calculate premiums for life insurance policies based on the risk profile of the insured, just as banks calculate interest rates based on the credit risk profile of the borrower. The higher the risk profile, the larger the premium is going to be. For instance, firefighters and policemen have high-risk occupations. It is also for the same reason that older people generally have to pay higher premiums if they start their insurance policy late in life. The same principle applies to smokers. Since smoking is now clearly associated with high mortality rates and a number of fatal diseases such as cancer and tuberculosis, insurance companies will naturally charge higher premiums from smokers for term insurance policies.
Term insurance for Smokers
If you are a regular smoker, it is advisable that you quit for the health and wellbeing of your family and yourself. At the same time, to secure your family’s future, you can also purchase term insurance policies that are specifically tailored for smokers. As mentioned earlier, these policies come at a higher premium than those for non-smokers, however, the protection offered by term insurance policies provides a sufficient safeguard for your family in the case of an eventuality. Finserv MARKETS has a number of insurance plans for all categories of customers and you can even compare the various features of all the plans and choose the one that best suits your needs. Get an estimate of your premium amount with the term plan calculator 2021
The Bottom Line
Smoking not only poses many health risks but can also adversely affect your finances in many ways. It is advisable that you quit smoking at the earliest. At the same time, it is important that you protect the future of your family by buying a good term insurance policy for smokers that provides a sufficient sum insured to take care of all their needs in the case of an eventuality.