Many people are very excited about getting favourable rates on term plans. However, few know what the guidelines on classifying a person non-smoker and preferred non-smokers are. Some smokers who have quit smoking are also eligible for favourable premiums. You will be surprised to know that an occasional cigar smoker may qualify for non-tobacco rates. Here are some nitty gritty that you should know.
Do you consider yourself as Non-Smoker, read further?
|Name of the Product||Classification by Insurer|
|MetLife Surakska Plus||People who have not smoked or consumed tobacco or nicotine products in any form in the last 5 years. (Tobacco product includes but not limited to Cigarettes, Bidis, Cigars, chewable tobaccos like Ghutka, flavoured Pan Masala etc).
The special premium rates are offered subject to satisfactory results of “Cotinine Test”. Besides, other underwriting requirements as may be required by the company from time to time.
|Max New York Life Platinum Protect||1. Smoker – Tobacco consumption
2. Non Smoker – No tobacco consumption in the last 3 years
3. Preferred Non-Smoker – No tobacco consumption in last 3 years and a healthier lifestyle basis the specified medical examinations.
|Kotak Preferred Term Plan||Not consumed tobacco in any form (smoking, chewing etc.) during the past 12 months and do not have any intention of consuming tobacco in any form in the future.|
|Birla Sun life Protector Plus||Non-Smoker rates would be available if you have not smoked or consumed tobacco in last 2 years.
Additional discounts may be offered depending on family history and other medical tests.
|Aviva India Life Shield Platinum (Option A)||Female lives will be offered male preferred non-smoker rates irrespective of their smoking habits.|
When should I disclose my tobacco usage?
You will encounter a common question in the proposal form.
- Do you consume or have ever consumed Tobacco in any form (cigarettes, beedis, gukta/cigar etc?
- If yes, please state No. of beedis, cigarettes, cigars_____per day. Tobacco/Gutka_____gms per day.
What happens if I do not disclose
Most companies require a medical test to be conducted for nicotine presence in blood samples or other advanced techniques such chemical test of your workstation or apartment.
Further, companies insist on undertaking on the tobacco usage signed by the life assured and false statement regarding use of tobacco would render the contract void and lead to loss insurance cover.
Can there be any changes in future?
India ranks very high in both mortality and morbidity caused due to tobacco usage. The above are some of the general guidelines. These guidelines may be revised on basis of claim experience. Giving discount based on tobacco usage is relatively new in India and will evolve further. In other advanced insurance market such as United States there are even more variation depending on the company’s guidelines.
As more and more companies will offer differential pricing, the market would become more complicated. You should ask specific questions from your advisor in relation to non-smoker and preferential discounts. If you want further assistance on selecting an appropriate insurance company product, you can call us or leave your contact details for further discussion.