Term Insurance for Smokers

There is no separate "smoker plan" in India. Smokers buy the same term plans as everyone else and are charged smoker rates.

Can Smokers Buy Term Insurance in India?

Yes, one can buy term life insurance for smokers in India. They get the same plans, cover amounts and benefits as non-smokers. The only difference is a higher premium, usually 30% to 100% more, depending on age, cover amount, insurer and health. You must declare your smoking honestly, and the insurer may ask for a nicotine test.

The policy terms are the same for smokers and non-smokers. If the policyholder dies during the policy term, the family receives the full death benefit. What changes is how the insurer assesses your risk. You'll be asked about your tobacco use in the proposal form, and many insurers run a medical check-up with a cotinine test before issuing the policy. Use a term insurance calculator to see your premium before you buy.

How Does a Term Insurance Plan Work for Smokers?

The term life insurance for smokers is the same as term insurance plan for non-smokers except the differences in premiums and the procedure of assessing the risk profiles. Let’s understand how the term insurance for smokers work:

• Premium: Smokers pay more for insurance than non-smokers because they are more likely to file a claim. Smokers are more likely to get sick, and the chances of making a claim are higher. Before you buy a term insurance plan, you can use a term insurance calculator to figure out the premium.

• Underwriting Process: The underwriting process is the process of figuring out how risky something is. When people apply for term insurance, smokers and non-smokers both have to go through this process. During the process, you will be asked about your lifestyle. You should tell the truth about how often you smoke, how many cigarettes you smoke in a day, and other things like that. Some insurance companies might also require nicotine tests. The usual check is a urine cotinine test.

• T&Cs of the Policy: The rules for the term insurance plan are the same for smokers and non-smokers. In either case, in the unfortunate death of the policyholder while the policy is active, their family will get the death benefit.

• Declaration: Do not hide any information, such as how much you smoke. The insurer can reject the claim if non-disclosure is found within the first 3 years of the policy.

Who is Considered a Smoker by Term Insurance Companies?

You are treated as a smoker if you have used tobacco or nicotine in any form in the last 12 to 36 months. The exact period depends on the insurer. Many insurers treat you as a non-smoker once you've gone 12 months without tobacco, while others want a clean record of up to 3 years.

This includes cigarettes, bidis, cigars, hookah, gutkha, khaini and chewing tobacco. Nicotine products such as e-cigarettes, vapes, nicotine gums and patches also count, even if you use them only occasionally.

It doesn't matter how often you smoke. Smoking one cigarette a day, or only at parties, still means you should declare yourself a smoker.

How Smoking Impacts Term Insurance?

Smokers typically pay about 30% to 100% more than non-smokers for the same coverage. The exact gap depends on age, cover, insurer and health. There have been various cases where customers hide their smoking habits to save on the extra charge. If you are a smoker, it is very important to inform the insurer.

If the buyer gives false or incorrect information about smoking, the insurer can:

• Declare the policy invalid or nullified

• Reject the claim on the grounds of fraud

• Terminate the plan benefits

These actions are limited by time. Under Section 45 of the Insurance Act, the insurer can question the policy for misstatement only within 3 years. After 3 years, it cannot be questioned on any ground.

What are the Best Term Insurance Plans for Smokers in India?

Disclaimer: ~The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Why Should Smokers Buy a Term Plan?

Smokers are generally at a higher risk of health issues, which increases the chances of an untimely death compared to non-smokers. That makes term insurance even more important for them, so their loved ones are financially protected if something unexpected happens.

Many people try to hide their smoking habit while buying a policy, but this can cause serious problems later. Insurers check your declaration in the proposal form and may also run a cotinine test as part of the term insurance medical tests. If the two don't match, or if the insurer finds out about your smoking when a claim is made, the claim could be delayed or even rejected. Being honest about your habits gets you the right cover and gives your family peace of mind.

What Are the Types of Smokers As Per the Insurance Company?

All smokers don’t have the same smoking practices. This is the reason they have classified smokers into three types:

• Typical Smoker: Smoker with some minor health problems

• Table-rated Smoker: Individuals having some obvious health conditions owing to smoking.

• Preferred Smoker: Individual who is a smoker but overall he/she is fit and in good health.

What are the Eligibility Criteria for Term Insurance Plan for Smokers?

Here are some of the things that you should know before buying term insurance for a smoker:

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying.

Why Does the Sum Assured Matters More for Smokers?

As a smoker, you face a higher risk of serious illness at an age when loans, school fees and household costs are often at their peak. That makes choosing the right cover even more important. Because smokers pay higher premiums for every lakh of cover, it's tempting to go for a lower sum assured, but that saving can leave your family short when they need the money most. Work out what they would actually need, usually 10 to 15 times your annual income plus any loans, then compare insurers for the best smoker rate on that amount. Pick a cover amount below to see plans.

What Happens If You Do Not Inform the Insurance Company About Your Smoking Habits?

If you are a smoker, it is important to be honest about your habit when applying for a term or life insurance plan. It may seem like hiding this information will help you get lower premiums, but it can have serious effects later, especially when it comes time to settle a claim.

How Smoking Affects Term Insurance Claims

Insurers look at your smoking habit when they approve your policy and set the premium. If you fail to disclose your smoking habit and the insurer finds out, especially during a claim investigation, it could lead to term insurance claim rejection or a reduced payout. In some cases, it may even be treated as fraud.

Risks of Not Disclosing Smoking Habits

When a term insurance claim is filed, within the first 3 years of the policy, the insurer may investigate it closely, including your medical and hospital records. If it finds that you hid your smoking habit, it can reject the claim, even if the death had nothing to do with smoking, such as an accident. This puts your family at financial risk during a difficult time.

Policy Termination and Legal Consequences

If it is found that you hid your smoking status, the insurer might terminate your term insurance for smokers policy or increase your premiums. In some cases, it may also lead to legal consequences.

Can Ex-Smokers Get Lower Term Insurance Premiums?

Yes. If you've been tobacco-free for the insurer's required period, usually at least 12 months, many insurers will give you non-smoker rates. Some insurers want up to 3 years. When you apply, tell the insurer that you used to smoke and when you quit. You may also need to take a cotinine test to confirm it.

If you quit recently, for example 6 months ago, most insurers will still treat you as a smoker. You have two options:

• Need cover now? Buy at smoker rates and declare your quit date.

• Can wait? Apply after the 12-month mark to get a lower rate.

If you've already bought a policy, some insurers let you apply for a review once you've been tobacco-free for 12 months or more. Others don't change existing policies, so you'd need to buy a new one for non-smoker rates. If you plan to quit, ask about this before choosing an insurer.

Does Smoking Affect My Term Insurance Premium Rates?

Yes, smoking affects the term insurance premium rates. As we all know, smoking is injurious to health, so, how do life insurance companies look at this dangerous practice?

Generally, smokers are required to pay higher premium amounts than those individuals who do not smoke when they buy term insurance for smokers. The simple reason is that smokers have a greater mortality rate than non-smokers.

Let’s understand this with the help of an example:

A healthy 30-year-old non-smoker buying ₹1 crore of cover pays around ₹691 a month, while a smoker of the same age pays around ₹1,201, which is about 74% more.

Thus, smoking habits do affect your term insurance premium rates.

Source: Policybazaar. Figures are indicative and vary by insurer and underwriting.

Term Insurance for Smokers vs Non-Smokers: Detailed Comparison

Here is a comparison between the term insurance for smoker and non-smoker customers:

How to Get Lower Premiums as a Smoker?

Paying higher premiums is common for smokers, but there are still practical ways to reduce the overall cost of your term insurance.

• Quit Smoking
  If you've been tobacco-free for at least 12 months, many insurers will offer non-smoker rates on a new policy after verification.

• Improve Your Overall Health
  Maintaining a healthy weight, controlling blood pressure, and keeping cholesterol levels in check can positively influence underwriting decisions. A healthier medical report can sometimes balance out smoking risk.

• Choose the Right Policy Term
  A realistic term instead of an extremely long one can lower premiums. But a term that ends too early can leave you uncovered in your 50s and 60s, when smokers' risk is highest. Cover yourself at least until your working income stops.

• Pay premiums annually, not Monthly
  Paying premiums once a year instead of once a month can sometimes lower the total amount you pay over time, since insurers may give you small discounts for yearly payments.

• Compare Multiple Insurers
  Premium rates for smokers vary widely between companies. Getting quotes from different insurance companies can help you get a better deal.

Even as a smoker, a little planning and comparison can make your term insurance more affordable than you might expect.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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