Insurers are, in the end, running a business and approving applications coming from applicants who have been or are currently using tobacco are considered as ‘high-risk’ cases.
A smoker is considered as a ‘high-risk’ case since these individuals are very likely to come down with lung or heart diseases. Furthermore, the chances of their untimely demise are also high. This also increases the chances of an insurance company to hand out claims to the deceased applicant’s beneficiaries; and handing out claims means ‘loss’, in the books of an insurance company.
So, smoking does have a lasting effect on your life insurance after all!
And this can be seen in the form of high premium rates on insurance policies that are approved by an insurance company for their client who uses tobacco! With that stated, if you want to find rates on life insurance for smokers here is a quick link to do so! And if you want to know more about how this lethal habit can reduce the chances of your life insurance application getting rejected then read on!
As per the books of an insurance company, who is considered as a smoker?
As per the underwriter associated with one of the leading insurance companies in the UK, a person who has smoked a cigarette or a cigar in the last one year is a smoker!
What if you choose to lie about your smoking habits?
Lying about your smoking habits is a punishable offence since it is labeled as ‘fraud’ by insurance companies!
Furthermore, if the applicant falls ill and contracts a heart or lung disease, then in their medical tests, it would be evident that they have been or are still using tobacco. Medical records are easily accessible these days hence the fact that one is or was a smoker will not stay hidden from their insurance company.
So, In a nutshell – do not lie!
What happens when you choose to quit the habit of smoking?
According to experts, even if an applicant quits smoking before they apply for a life insurance policy, the insurer will take a close look into the medical history of the applicant.
Furthermore, a routine and detailed medical examination will be conducted by the insurer and when the results are out, in case there is any chance revealed that the applicant will be coming down with a heart or lung disease, the insurer can reject the application!
In such cases, the applicant could turn the table in their favor if they can convince the insurance officer to approve their application. If the insurer does approve the application, one would need to pay a higher premium on their insurance.
Age and value of the policy will also dictate the premium amount of the life insurance policy, so it is best to consider all factors before sitting in a one-to-one with the insurance officer!
To sum it all up – if you are a smoker, you will have to bear high premium rates on your life insurance. Smoking is a bad habit that comes with a plethora of health hazards. Never hide the fact that you are a smoker if you are a smoker that is! It is a punishable offence. So, quit today if you are planning to apply for life insurance any time soon.
