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  • Category: Insurance

    Under a term insurance plan do I need to declare myself as a smoker if I smoke ocassionally?


    Have a query about term insurance? Wondering whether it is necessary to declare smoker? You can read the benefits and terms and conditions of term insurance on this page and get a resolution to your queries.

    Term insurance policy is kind of life coverage plan. It provides coverage for us for defined period of time and if the insured expires during the term of the policy then death benefit is payable to nominee.
    Term plan is basically designed to secure your family financially.
    Do I need to declare myself as a smoker?
  • #146131
    I think you have to mention. You may have to go for a medical test. In those tests, it may reflect. If you are not going for any medical test basing on your age and the company policy, you need not say that you are a smoker. You can ask your Life Adviser or the concerned officer. They will help you definitely.
    drrao
    always confident

  • #146133
    When you go for term insurance plan you have to fill a form in which you have to give your name, address, occupation etc as personal data sheet.

    After this you have to give the details by ticking in the format at appropriate option regarding the type of insurance what it will cover and what it will not and if you want to add something specific in it. It is the sheet where various things about your habits related to health will be highlighted. These information along with medical test reports as desired by the insurance agency will form the basis of claims in case of any eventuality.

    Whether you smoke or drink it will be covered in the format by asking you the information. The premium of a term insurance for smokers will be slightly higher than the non smokers. If someone tries to hide this information while taking the policy the company can get the information from medical test as nicotine can be identified easily. So it is better to be honest and disclose your health and habit conditions exactly to avoid any embarrassment later.

    Knowledge is power.

  • #146140
    The insurance cover is based on the facts disclosed by you. It is believed and taken in good faith that you have disclosed all the relevant information about your health and habits. The premium is depending on the risk factors and risk factors depend on the life style, our routine activity, heredity , habits and the previous history and events about our health.
    In case it is later fund out that the policy holder had knowingly hidden some such relevant information, then the claims put up may be disallowed also.

    A smoker is more vulnerable to certain risks. So there may be some extra premium or may need pre-medical check up also if the case so warrants.

    It is expeceted to be honest and factual in answering the questions asked in the policy application.

  • #146143
    If you smoke really occasionally, many people would advise that there is no need to disclose it. However, to remain in safe side, it is always good to give correct information, get a medical test done and bear a marginally higher premium. Taking these simple steps, you would reduce the chances of dispute in case of any unfortunate event. Your nominee won't have to run from pillar to post to get the benefit of the term insurance. Moreover, the medical test would forewarn you in case of any possible danger.

    Considering the welfare of the nominee whose financial future you are planning to protect, you should declare all facts truthfully while filling up the form for term insurance and undergo the medical test.

    Subscribe to a term insurance policy as early as possible because the early you subscribe, the less premia you have to pay.

    Caution: Explosive. Handle with care.

  • #146146
    When we go for insurance plans medical test is a pre requisite as the insurance premium is related to our health conditions and smoking or drinking habits. Insurance company goes by medical analysis and if the chances of a person are not for long time survival they will increase the premium in same proportion. This appears to be a correct business strategy also.

    So when they get all the information about the person either directly fro him or through his tests they intimate him the premium. To lure the customers insurance companies take risk by giving some discounts on the increase of premium. This risk is based on the statistical analysis of people dying early because of certain habits or ailments.

    In essence for a smoker the premium will be a bit on higher side.

    Thoughts exchanged is knowledge gained.

  • #146151
    When it comes to health insurance and term insurance. They require you to go through various set of the tests. And they require you to have specific conditions like you are not smoking, have no blood sugar level high etc. As some health insurance plans don't cover smoking related issues, diabetes etc. So you'd be required to go through test and submit it with the term insurance plan. So depending on that you'd be able to get the term insurance amount increased or decreased. In some cases the insurance companies may not tell you this but if the person has any future incident with those health issues.

    I suggest you to go through health check up and let them know through it. Usually one should not write whether he is smoker or not in the form. That is kind of counter affects the term plan. And give the insurance companies more chance to not pay back. So better not to let them know about it.

  • #146152
    Let me put it this way. The commonest reasons for denial of term insurance in India are
    1.Concealing information
    2.Default of premium
    3.No nominees
    4.Refusal or delaying medical examination.

    So, I think that answers your question. Smoking and alcohol consumption are important as they affect the health and hence the chances of an unfortunate event happening related to it. As far as I'm aware there's nothing like a social drinker or a social smoker.

    These can be traced back later on as many hospitals now have multiple points and multiple doctors and nurses entering patient information on the records. All these computerised records are accessible to the insurance companies. It would unfortunate that the claim has been rejected on some silly grounds that it has been recorded somewhere in the healthcare record that you are a smoker.

    Unfortunately, many companies do not differentiate between a chronic smoker or a social smoker. Some people think that they are smart and quote that they have quit smoking, this often attracts the premium of the smoker type as you should have given up smoking for a few years to qualify for the non-smoker status.

    In fact, the job and high-risk lifestyle and hobbies also need to be declared to ensure that the records are in order.

    Many companies and blogs warn that the policyholder only to fill the forms and not to trust the agents who can bypass certain details to get the policy approved in time.

  • #146179
    It is always better to be honest. Any level of nicotine user is considered as a smoker when filling the form for insurance policies. The premium charged from smokers will be slightly high. If you hide it and take the policy, alter when their is a claim, the agency can always deny it by saying that you have not disclosed the complete information while taking the policy. So in order to avoid issues in the future, it is always better to disclose all materials facts at the tie of taking the policy. Whenever a policy holder dies, there will be an investigation into the circumstances, and if the presence of nicotine is found, the insurance company has all the rights to deny the claim amount.

    It is not safe to start smoking even after taking a insurance policy. Most of the insurance companies have contestability period, during which if something happens to the policy holder, and if it is found that the policy holder was a smoker, the company can deny the claim or else they will adjust the amount as you where paying the premium as a smoker and will only pay the rest to your nominee.

    Regards
    Chitra
    "Do not give up, things might not favour you always"


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