Health insurance 

How smoking affects your health insurance policy

It is a well-known fact that smoking causes adverse health effects. Surely you have seen the warning message on all cigarette boxes: “Smoking is harmful to health.” Tobacco smoking is the root cause of 30% of all cancer deaths and causes a 16 times increased risk of heart attack.

In India there are almost 120 million smokers. According to the World Health Organization, India is home to about 12% of the world’s smoking population. The number of men who smoke tobacco has increased from 78 million in 1998 to 108 million in 2015. Tobacco use is responsible for the death of 6 million people each year. Direct tobacco use causes more than 5 million deaths and 0.6 million deaths are due to exposure to secondhand smoke. Considering the serious risks to public health, the Government banned smoking in public places as of October 2, 2008.

Not only your health, but it also causes you to pay higher premiums for a health insurance policy, due to greater health risks and a shorter life expectancy. However, a non-smoker gets premium discounts as a reward for leading a healthy lifestyle. As a smoker, it’s wise not to hide your smoking habit from your health insurance company, as it helps cover smoking-related health problems.

There is great curiosity among people about how smoking affects health insurance and its cost. Learn about smoking and its impact on your health insurance policy.

Smoking: what’s included

Smoking includes the inhalation of burnt tobacco smoke in the form of cigarettes, cigars, and beedi. Whether you are an occasional smoker or a frequent smoker, the health insurance policy will consider you a smoker.

Smokers can purchase health insurance, however, an insurance company may charge an additional premium or deny your insurance application, depending on the number of cigarettes you smoke on a regular basis. A smoker may also need to undergo additional health checks that can help an insurance company determine the risk factor and then charge the premium amount accordingly.

How smoking affects your health and your insurance premium

Smoking has serious consequences for your health; some of them are detailed below.

Circulatory system: Smoking produces an increased risk of heart pain and blood pressure. The accumulation of fatty acids could lead to atherosclerosis.

Immune system: Smoking causes serious and long-lasting illnesses. Smokers are more likely to develop ulcers, cancer, pneumonia, high blood pressure, bronchitis, and other viral, bacterial, or fungal infections.

Respiratory system: Smoking can damage lung functions and cause shortness of breath. It can cause damage to the air sacs in the lungs and increase the chances of developing chronic bronchitis.

Oral health: Smoking can lead to tooth loss, tooth staining, and gum disease, which can increase the risk of cavities.

Cancer: Smoking for a long time also causes cancer in various organs of the body.

When it comes to a health insurance policy, an insurance company considers the magnitude of illnesses and deaths caused by smoking and that is why smokers must pay higher premiums to take advantage of health insurance coverage. Typically, insurance companies charge 15 to 20 percent more for an insured smoker. Those who smoke would need to undergo additional medical check-ups before the insurer would issue the policy.

Let’s understand the premium difference between a smoker and a non-smoker.

Ritesh (non-smoker) at age 30 buys individual health plan with coverage of Rs 5 Lacs, for 1 year policy period, annual premium amount collectable is Rs 4,656. However, Raj (smoker) is buying an individual health plan and is charged an annual premium of Rs 7,552. The increase in the premium amount is solely due to the fact that Ansh is in the smoker premium category. We can see that Raj is paying an additional Rs 2,896 for smoking.

Smoker with existing health problems

If you are a frequent smoker that has caused symptoms of deteriorating health condition and you are wondering if you can get health insurance. The answer is yes, all that is required is honest and proper disclosure.

The insurance company will then assess the risk associated with your profile and then decide the terms and conditions and the premium to be charged for providing you with medical coverage. Premiums charged will be higher and a waiting period will apply to cover your pre-existing conditions. Also, if you are looking for immediate coverage for your failing health, you can opt for a critical illness policy.

Conclusion:

Smoking has an adverse impact on your health and also on your health insurance policy. An insurance company will charge you a higher premium in proportion to the risk associated with providing health cover. An important point to keep in mind is that you must disclose all relevant information about your health and smoking habits. If you are caught hiding or providing false information, the insurance company may refuse to settle claims.

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