How Does Smoking Affect Your Health Insurance Premium?

Lighting up a cigarette might give a momentary sense of relief, but have you ever thought about the hidden cost it adds to your life beyond just health risks? 😐

Smoking doesn’t just burn a hole in your lungs; it also burns a hole in your wallet, especially when it comes to health insurance premiums. Insurers see smokers as high-risk individuals, which means higher premiums, stricter policies, and even possible coverage denials.

If you think the cost of cigarettes is high, wait until you see how much extra you’re paying just to stay insured! Let’s dive into what health insurance is for smokers and how smoking makes your health insurance more expensive and less accessible.

Yes!!

Many health insurers provide coverage to smokers. The IRDAI (Insurance Regulatory and Development Authority of India) even mandated that smokers have a right to apply for health insurance. However, the terms, conditions, and costs of premiums vary from insurer to insurer.

Insurance companies define a smoker as someone who smokes cigarettes, cigars, hookahs, and pipes or who chews or snuffs tobacco more than four times per week. Additionally, someone is deemed to be a smoker if they have smoked more than four times per week throughout the previous six months.

Suppose your insurer identifies you as a smoker. In that case, they might ask you to take a few medical tests to ascertain your health before deciding on the premium, especially if you are over 40 years of age or want a higher sum insured amount in health insurance.

It is very important to be honest and disclose your smoking habits to your insurer. Misrepresenting the facts can lead to your claims being rejected and might also be considered insurance fraud and lead to legal troubles.

Also, be honest about how often you smoke, as even declaring that smoking 2 cigarettes a day while you actually smoke 6 cigarettes a day can pose issues. Medical tests at the time of claims can detect nicotine in blood and urine tests and can quickly lead to claim rejection.

Thus, if you are a smoker or even if you have given up smoking long ago, don’t hesitate to disclose it. The higher premium is worth it compared to large hospital bills that can wipe out your savings.

Smoking is one of the major factors that affect your health insurance premium since it can cause a number of health problems like lung infections, cancer and other critical illnesses. This makes smokers a higher risk, as these health issues might lead to a higher chance of them making health insurance claims in the future. Thus, they will be charged a higher premium.

In fact, the health insurance premiums for smokers can be almost double those for non-smokers.

Some reasons behind this are:

• Smokers are more likely to develop life-threatening conditions like lung cancer, heart disease, and stroke, increasing the insurer’s risk.
• Smoking weakens the immune system, leading to frequent illnesses.
• Since smoking is linked to a higher mortality rate, insurers charge higher premiums to compensate for the increased risk.
• Treatment for smoking-related diseases like COPD, lung infections, and cardiovascular issues is costly, making insurers charge more.
• Smokers are more likely to file health insurance claims, leading to increased premiums to balance the insurer’s payouts.

Health Insurance for Smokers with Pre-Existing Conditions

Insurers may want further medical testing to identify any health issues if a smoker has a pre-existing disease (such as diabetes or hypertension), whether or not it is connected to smoking.

The severity of these medical issues will then be used to determine the premium. Additionally, before these pre-existing conditions covered in health insurance, there will be a waiting period of 1 to 3 years. Although smokers and non-smokers have the same time frame, smokers may be exempt from specific circumstances.

Since smokers face higher premiums for their health insurance, they must consider doing something to reduce the premium. Here are a few things smokers can do to reduce their health insurance premiums:

• Quit Smoking – If you quit smoking for at least 2 years during the policy period, health insurers may consider this and lower your premiums accordingly.
• Joining a Smoking Cessation Programme – If you are unable to quit on your own, many health insurance companies offer or have tie-ups with smoking cessation programmes that can help you do so. Again, you must show at least 2 years without smoking before your premium changes.
• Look at Different Insurance Companies – Since there is a large population of smokers in India, there are a few health insurance companies that offer policies to them with comparatively lower premium amounts. You can research and look for such companies.

 

Also Get to Know: How to Calculate Health Insurance Premium Online?

One of the crucial parts of having health insurance is claiming. It's crucial to ensure insurance claims are handled correctly if you haven't stopped smoking after getting a health insurance plan. 

Here is a thorough explanation of how you can make sure that your insurance claims are settled easily:

• Firstly, you have to tell your insurer the truth about your smoking habits. Giving false information could result in the chosen insurance being cancelled or the claim settlement being denied.
• Second, keep a record of your medical history and the treatments you have received for illnesses linked to smoking. For a seamless claim settlement, schedule routine checkups with the doctor.
• Thirdly, carefully review your insurance policy document, considering its coverage and claim-filing procedures. Have all the paperwork handy that you'll need for the claim, including medical records and invoices for bills.
• Lastly, speak with your insurance company if you have any questions. Send in all necessary paperwork and keep copies of all the documents you send.

Falsifying facts regarding smoking while buying health insurance is fraud and can have many repercussions. You will be liable for paying for all medical expenses if the insurance rejects your claim.

Additionally, the insurance companies may figure out your smoking behaviours through medical screenings and thus have the power to decline your claims or your health insurance plan. Here is what might happen further:

• If the insurer denies related claims, you will be responsible for paying for them out of pocket.
• If, through medical testing, the insurer discovers that you have been misled about smoking, they have the authority to deny your application, or if the policy has already been approved, they can cancel it.
• Lying may be seen as fraud and result in legal issues as well in future.

It is always right to tell the truth about how often you smoke and your smoking habits. Despite the expensive cost, it is worthwhile since medical inflation might deplete your funds. 🙂

Regular or heavy smoking can lead to an increased risk of several health issues, including:

• Respiratory complications and diseases
• Chronic obstructive pulmonary disease (COPD)
• Heart diseases
• Cancer (especially oral and lung cancer)
• Stroke
• Emphysema
• Osteoporosis
• Pregnancy-related complications

Thus, the increased risk of these illnesses makes it more important for smokers to buy health insurance so that they have financial protection.