Why should smokers not avoid buying term insurance covers despite hefty premiums?
Covid19 has put all of us in a higher state of uncertainty. It has made us more aware of securing ourselves with the best possible health cover for ourselves. However, more than the deaths caused and even prior to the spread of this fatal pandemic, another fatality has surrounded people, i.e. smoking. According to the World Health Organization (WHO) reports, 8 million people die of tobacco consumption, and 7 million of them are related to direct consumption of tobacco use. A factor not known and much ignored by people is that the premium payment rate can be higher to up to 70 per cent for smokers.
It is a known fact, hailed all around, even on the packets of cigarettes that smoking is injurious to health, yet we do not see a decrease in smokers’ number. However, for acquiring insurance covers, it is even more important to know that there are separate provisions for smokers in the term insurance cover of health.
Why are smokers charged more for premiums in their term insurance cover than others?
This is because smokers have a high mortality rate and certainty are more prone to any mishap or death than others. The risk factor associated with their lives is more; that is why they are charged with higher premiums. Potential policyholders who happen to be smokers might think there is no use of buying any of the term insurance cover available in the market because of its high premium price, but this is not the case. High premiums should not stop smokers from buying term insurance covers because of the following reasons:
- Term insurance promises to provide a lump-sum amount to the policyholders’ family members if they happen to die. This is also done cost-effectively.
- It is not just from smokers that higher premiums are charged but also from people with hypertension, diabetes etc. Premiums have been lower for people to keep term policies more affordable, but it has resulted in steeper premiums for smokers. They have to pay an over and above premium to the base premium they already have to pay to cover the extra risk smokers are subjected to.
- This is not a very new change that has come along with differentiating between the smokers and non-smokers. It has been ten years to this change as it was introduced in 2010 when insurance companies started to divide the premium rate for the smokers and non-smokers.
- This is also because smokers are prone to more forms of cancer like throat cancer, lung cancer, oral cancer etc. Hence, such a divide is considered necessary and understandable.
- Often, to prevent themselves from paying higher premiums, people lie about their lifestyle habits. This is of no use because medical tests scrutinize people’s smoking habits, and there is no escaping to pay higher premiums. More than for one’s own self, you should invest in term insurance cover for your near and dear ones because, in the end, it is them who will have to bear the loss of someone they love and also the financial baggage that will come with your passing away. This form of cover becomes even more critical in these uncertain times of Covid19 where weak immunity has become the cause of becoming the victim of the fatal disease and makes you the carrier of it for other innocent people. The test taken is called the nicotine test.
- Moreover, Covid19 attacks the lungs the fastest and people with an already impaired respiratory system because of their smoking habits have to get themselves assured to a term insurance cover. This is why it is so vital for smokers, especially.
It is advisable that when the potential policyholders buy any term insurance cover, they maintain transparency in all their details. Even if they have left smoking, it is their responsibility to make the insurance company officials aware of this as in the nicotine test; the smoke residues can be detected. That is why maintaining transparency is vital. Honest declarations of the policyholders’ health history will help form trust among people and the insurance company. They will also help in maintaining a smoother channel of the insurance claim in future.
In short, we can also say that smoking burns a hole in one’s pockets in many ways – first in terms of buying that pack of cigarette and on top of it, to get a term insurance cover too. However, as a smoker or a non-smoker, everyone needs term insurance to get some security for their future and for their loved ones in the unlikely event of their demise. This is where bimakaro.in can help. You can compare the benefits offered by several companies and different products as well to choose the one that suits your needs the best way possible. You also get the freedom to choose the premium and select various riders that can be opted for along with your desired policy. In short BimaKaro.in provides answers to all your insurance-related needs under one roof.