Individuals who have an addiction to smoking can avail of term insurance policies specially designed for smokers. Smokers looking to avail of term insurance are required to provide the insurance company with all relevant information regarding their smoking habits.

Categories of Smokers

In general, most insurance companies have differentiated smokers by placing them into three separate categories:

• A typical smoker
• A preferred smoker
• A table rated smoker

Of these categories, typical smokers are considered to be ones with small health issues while preferred smokers are generally considered to be fit. However, table rated smokers are considered to be ones with notable physical issues. Premium given out to smokers are typically higher than regular insurance premiums due to the higher level of risk involved.

General Features of Term Insurance Plans for Smokers

While term insurance for smokers differs from company to company, these are some of the general features of these policies:

• The minimum age of entry is usually 18 years of age
• The maximum age that up to which the policy covers the client is 75 years of age
• The minimum policy term can vary from 5 - 10 years
• The maximum policy term can vary from 30 - 40 years
• The minimum Sum Assured can vary from Rs 3 lakhs to Rs 50 lakhs
• The maximum Sum Assured can rise to any amount without limit
• Premiums are usually paid on an annual basis
• In order to avail of this type of insurance policy the person should be a resident of India residing in India
• In the event of death of the policy holder during the term of the policy, the Sum Assured shall be paid to the nominee
• Should the policy holder survive to the end of the policy term, no maturity benefits can be availed. However this depends on the company’s policy.

Popular Term Insurance Plans for Smokers

The following are some of popular and affordable term insurance plans for smokers:

• iTerm Plan from Aegon Religare - One of the most affordable term insurance plans for smokers in the market. It is available for clients up to 75 years of age and come with 3 riders.

• HFDC Life Click 2 Protect Plus Plan - This term insurance plan can be bought online and offers payment in the form of a lump sum to the nominee in case the insured passes away during the term of the contract.

• Aviva i Life- This is a pure protection plan which can be purchased online. This plan provides only death benefits, with no maturity benefits available. Women can avail of an additional rebate of 5% on the premium offered to men.

• Bharti AXA Life eProtect Plan - This term insurance plan offers minimum sum assured of Rs 25 lakhs and comes with a Family Care Benefit option

• LIC Amulya Jeevan - This term insurance plan is a low cost risk plan which offers a rebate on large sum assured with high tenure of 35 years available to clients as well.

Effects of not Providing Correct Information

Clients withholding information regarding their smoking habits as well as state of health could face the charges below:

• Any individual withholding relevant information from the insurance company could be held liable for insurance scam
• Withholding of information could also lead to the client’s contract or policy to be cancelled and declared invalid by the company
• Any individual withholding information will be denied any benefits that the policy might offer