Financial PlanTerm Plan

How to Buy Term Insurance for Smokers

Life is unpredictable and this is a good enough reason for every individual to invest in a life insurance plan. If you are a smoker, you must buy term insurance because the possibility of a smoker dying earlier is higher than that of a non-smoker. There are insurance companies that offer online term plans for you. The premium amount on your policy will vary depending on the type of smoker you are.

Insurance providers divide smokers into three different categories as mentioned below.

  • Preferred smoker 

A preferred smoker is a smoker who is overall fit apart from the habit of smoking. The premium amount for a preferred smoker will be the lowest.

  • Table-rated smoker

This type of smoker has a health condition due to smoking and the premium will be highest amongst the three different types because the company will try to minimize their risks.

  • Typical smoker

A typical smoker is a smoker who has a minor lingering health problem and the premium will be higher in comparison to the premium amount for a preferred smoker.

Factors to look into while buying term insurance for smokers 

You need to consider the below-mentioned factors while purchasing term insurance for smokers.

  • Age criteria

The minimum age at which a smoker can invest in term insurance is 18 and the maximum age is 75 years. The premium amount will also depend on your age at the time of application.

Also Read: 7 Mistakes to Avoid When Buying a Term Plan

  • Term

The minimum term for a smoker’s policy will be between five to ten years and the maximum tenure can range anywhere from 30 to 40 years. You need to choose the term based on your health.

  • Sum assured

The lowest sum assured in the term insurance policy is INR 25 lakh and the maximum sum assured can be as per your requirements.

  • Premium payment

The premium for a term policy should be paid on an annual basis.

  • Criteria for eligibility

In order to avail of the term insurance for smokers, you need to be an Indian citizen residing in the country.

  • Maturity

 If you survive the policy tenure, you will not receive any benefits for the same. Term insurance plans do not pay any amount if you outlive the policy tenure.

Also Read: Invest Your Increment in a Term Plan

A term insurance plan is an ideal way of securing the financial future of your family in case of any unfortunate incident. Smoking is injurious to health and can damage your lungs significantly. If you are a smoker, you need to buy a policy right away because you are at a higher risk as compared to a non-smoker and you need to secure the future of your family. A comprehensive term insurance plan will look after your loved ones in case of any untoward event in the future. Consider the plans available for you and make a thorough comparison before choosing one. Buying the right type of term insurance plan is the first step towards safeguarding the family’s future.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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