What if You Start Smoking After Buying a Term Plan?

 When a policyholder starts smoking after purchasing a term plan, it raises important considerations. Upon acquiring a term insurance plan, you'll encounter a crucial query in the proposal form: do you smoke? Your response significantly affects the premium you pay because smoking heightens health risks.  

 

Smoking is a detrimental habit linked to conditions like lung disease, cancer, heart disease, and stroke. Additionally, smoking-related complications can sometimes lead to fatal outcomes. According to data from the World Health Organization (WHO), smoking is responsible for nearly 1.35 million deaths annually in India.  

 

As a smoker, you pose a greater risk to the insurance company compared to a non-smoker.  

 

However, who qualifies as a smoker?  

In insurance terms, you fall under the category of a smoker if any of the following conditions are met, regardless of the quantity or frequency of consumption:  

• You use nicotine or tobacco-related products.  

• You have used nicotine or tobacco-related products at any point in the past. Even occasional or rare smoking categorizes you as a smoker. Insurers typically classify smokers into the following groups based on their smoking habits:  

• Table-rated smokers: Those who exhibit health hazards related to smoking habitually.  

• Typical smokers: Habitual smokers with minor health hazards due to their smoking habits.  

• Preferred smokers: Smokers without any health-related complications due to their smoking habits.  
   

Smoking and term insurance  

When purchasing a term insurance plan, it's crucial to disclose your smoking habit, even if it's occasional. As mentioned earlier, the proposal form always inquires about your smoking status, and providing an honest response is vital. This is because life insurance contracts rely on mutual trust. The insurer places trust in the information you provide in the proposal form. If you misrepresent or conceal any facts, the insurance company may, based on the information submitted, reject your claim if the concealed information comes to light.  

 

Insurers may conduct medical tests to identify smokers, and the premium amount may differ for smokers and non-smokers.  

 

Therefore, if you smoke, it's imperative to inform the insurer.  

 
 

Acquiring a smoking habit after purchasing term insurance  

Term insurance plans are typically long-term commitments. It's possible that when you initially purchased the policy, you didn't smoke but later developed the habit. What steps should you take? Will smoking affect your coverage?  

 

In life insurance plans, it's essential to disclose all relevant information at the time of policy acquisition.  

 

It's advisable to notify the insurer if your smoking habits change after obtaining the plan. This ensures clarity in the event of medical complications arising from smoking, which could lead to unforeseen circumstances. When you inform the insurer, they may continue the coverage without any alterations or may revise the premium based on their terms and conditions.  

 

Furthermore, if your term insurance plan lapses and you're renewing it, disclosing your smoking habit is mandatory. In the case of policy renewals, insurance companies require you to report any changes that have occurred during the policy period. Therefore, if you took up smoking after purchasing the term plan and are now renewing it, you must inform the insurer of your smoking habits. 

  

In conclusion  

Smoking is a potentially hazardous habit. However, if you smoke or acquire the habit, it's essential to inform the insurance company from which you're obtaining your life insurance policy. Failing to disclose this information may result in disputes related to claims, which are best avoided. Be a responsible policyholder and uphold the principle of good faith. Inform the insurance company about your smoking habits, whether you had the habit at the time of policy acquisition or at the time of renewal, to ensure a smooth claims settlement process.