World No Tobacco Day, May 31, 2025: How Smoking Raises Insurance Costs and Why Coverage Matters

Every year on May 31, the world observes Anti-Tobacco Day to raise awareness about the dangers of tobacco use. Tobacco use is not only a worldwide problem but is an issue in India as well. Every year, around 13 lakh people lose their lives due to tobacco in India.

Beyond the well-known health risks, smoking also impacts your financial well-being, especially when it comes to insurance. Whether you’re applying for health, life, or even travel insurance, tobacco users often face significantly higher premiums compared to non-smokers.

In this article, we explore how smoking affects your insurance costs, and why having insurance is important.

Impact of Smoking on Life Insurance Policies

Smoking influences life insurance beyond just higher premium costs. During underwriting, insurers assess an applicant’s health and lifestyle to gauge risk, and smokers are often classified as high-risk. This classification can lead to increased premiums or, in some cases, even denial of coverage.

Additionally, some policies impose specific restrictions on smokers, such as waiting periods before certain benefits become accessible or limits on coverage for smoking-related illnesses.

Furthermore, smokers looking to add riders or extra benefits, like critical illness or disability coverage, may face higher premiums or reduced coverage options compared to non-smokers.

The Cost Difference: Non-Smoker vs Smoker Premiums

For the same coverage amount, smokers can pay anywhere from 25% to 100% more in premiums. The exact increase depends on factors like age, type of insurance, and smoking history. This higher cost is a way for insurers to offset the increased likelihood of claims related to tobacco-related illnesses.

Why Health Insurance Is Essential for Smokers

For smokers, having health insurance goes beyond being a mere choice it’s a vital necessity. Given the significantly higher risk of developing serious smoking-related illnesses, the cost of medical treatment can quickly become a heavy financial burden.

Comprehensive health insurance coverage ensures timely access to healthcare services and offers much-needed financial protection, making it an indispensable safeguard for smokers.

Conclusion

Understanding the financial impact of smoking on insurance premiums is crucial for tobacco users. Given the higher risks associated with smoking, insurers charge elevated premiums to manage potential claims. This makes having robust health and life insurance coverage even more important for smokers.

Proper insurance not only helps manage the higher costs but also provides essential financial security against health-related expenses. Being well-informed and adequately insured ensures better preparedness for unexpected medical needs, helping safeguard your financial wellbeing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.