Savings
2024-05-14 5 Min read
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You must have heard this a hundred times, ‘Cigarette smoking is injurious to health’. It, indeed, is a deadly habit. However, did you know that apart from affecting your health severely, smoking also affects your life insurance premiums? Yes, you heard that right! So, if you are a non-smoker, along with a healthy life, you can gift yourself a term insurance plan with a much more affordable premium. Let’s understand how being a non-smoker can help you acquire the best term insurance plan. Read on to learn more about the Protect Shield Plus plan by SUD, a special term insurance plan that is not available to non-smokers.
Term insurance and smoking habits
A term insurance plan, as you may know, is a pure protection plan. You choose a particular period, ranging from 5 to 40 years, for which the life insurance company covers you. In case you pass away during this period, your nominee receives the sum assured. If you outlive the term, no payout will be made, and the policy will come to an end. As there is no element of investment in a term plan, it is quite affordable. However, for people who smoke, the insurance premium can be much higher as compared to people who do not smoke.
Most life insurance companies classify individuals into 2 broad categories: smokers and non-smokers. Your lifestyle habits, including smoking, greatly determine the premium you are required to pay. It has been well established that a person who smokes is far more vulnerable to illnesses. The use of tobacco is proven to cause major health issues, including cancer, heart ailments and lung problems. Smokers, therefore, are considered to be ‘high-risk’ individuals.
As they are more prone to illnesses, their chances of raising a claim become much higher. This is the reason why life insurance providers charge a higher premium from such insurance seekers.
Most life insurance companies classify individuals into 2 broad categories: smokers and non-smokers. Your lifestyle habits, including smoking, greatly determine the premium you are required to pay. It has been well established that a person who smokes is far more vulnerable to illnesses. The use of tobacco is proven to cause major health issues, including cancer, heart ailments and lung problems. Smokers, therefore, are considered to be ‘high-risk’ individuals.
As they are more prone to illnesses, their chances of raising a claim become much higher. This is the reason why life insurance providers charge a higher premium from such insurance seekers.
Who is considered to be a smoker by life insurance companies?
When you fill out your term life insurance policy application form, certain questions about your health and lifestyle are required. You will probably be classified as a smoker if you smoke:
● Cigarettes
● Cigars
● e-Cigarette
● Hookah
● Or chew tobacco or gutkha.
The classifications may vary from policy to policy and company to company. Most life insurance companies will also check nicotine use by asking:
● If you consume nicotine/ tobacco,
● If you smoke,
● If you have smoked in the last five years
● If you have ever smoked.
A ‘yes’ to any of the questions/ situations above may put you in the smoker’s category. If you are someone who has quit smoking, you will typically have to wait for a year, or maybe more, to be eligible for buying insurance as a non-smoker.
● Cigarettes
● Cigars
● e-Cigarette
● Hookah
● Or chew tobacco or gutkha.
The classifications may vary from policy to policy and company to company. Most life insurance companies will also check nicotine use by asking:
● If you consume nicotine/ tobacco,
● If you smoke,
● If you have smoked in the last five years
● If you have ever smoked.
A ‘yes’ to any of the questions/ situations above may put you in the smoker’s category. If you are someone who has quit smoking, you will typically have to wait for a year, or maybe more, to be eligible for buying insurance as a non-smoker.
Do smokers have to pay extra for term insurance?
Yes, they do. While how much extra they need to pay depends on the insurance provider, the difference can range between 30% to a whopping 80%1. This is an indication of how vulnerable smokers are to critical illnesses and a short life span.
Keep in mind that even if you smoke occasionally or have an occasional drag, you must inform your insurer about the same. Also, make sure to inform them if you are using nicotine gum or maybe a patch, as most providers will still see you as a smoker. Even if you smoke infrequently, you are liable to share this information. Do not be tempted to hide this information or miscommunicate. This can turn out to be a costly mistake. The consequences can be severe. Your policy may be cancelled or worse, the claim amount may be denied to your nominee.
If you have purchased a term plan and start smoking after that, your premium will probably not be affected. However, it is highly recommended that you inform your insurance provider about such lifestyle changes.
Protect Shield Plus: An ideal term insurance plan for non-smokers2
SUD Protect Shield Plus is a term insurance plan that protects the financial future of your family in your absence. If the life assured passes away during the policy tenure, the nominee receives a death benefit. Here are some of the highlighting features of SUD Protect Shield Plus:
SUD Protect Shield Plus is a term insurance plan that protects the financial future of your family in your absence. If the life assured passes away during the policy tenure, the nominee receives a death benefit. Here are some of the highlighting features of SUD Protect Shield Plus:
1.Flexibility to suit your preferences
SUD Protect Shield Plus is quite flexible in nature. The flexibility of premium payment terms, mode, and policy tenure are offered so you can create a personalized plan for yourself and your family. You may choose to pay single, limited (5/7/10/12/15), or regular premium.
2.High sum assured
SUD Protect Shield Plus offers a high sum assured of up to ₹2 crores. All you have to do is carefully evaluate the needs of your family and then pick a plan that best satisfies the needs.
3.Easy eligibility terms
Anyone willing to invest in a term plan can choose SUD Protect Shield Plus. You can purchase the plan even at 60 years of age as the maximum age at maturity is 80 years.
4.Tax benefits
As a term plan, SUD Protect Shield Plus offers tax benefits as well. Under Section 80C of the Income Tax Act of 1961, you can enjoy tax deductions of a maximum ₹1.5 lakhs a year. The death benefit remains tax-free u/s 10(10D) of the Income Tax Act of 1961.
Keep in mind that even if you smoke occasionally or have an occasional drag, you must inform your insurer about the same. Also, make sure to inform them if you are using nicotine gum or maybe a patch, as most providers will still see you as a smoker. Even if you smoke infrequently, you are liable to share this information. Do not be tempted to hide this information or miscommunicate. This can turn out to be a costly mistake. The consequences can be severe. Your policy may be cancelled or worse, the claim amount may be denied to your nominee.
If you have purchased a term plan and start smoking after that, your premium will probably not be affected. However, it is highly recommended that you inform your insurance provider about such lifestyle changes.
Protect Shield Plus: An ideal term insurance plan for non-smokers2
SUD Protect Shield Plus is a term insurance plan that protects the financial future of your family in your absence. If the life assured passes away during the policy tenure, the nominee receives a death benefit. Here are some of the highlighting features of SUD Protect Shield Plus:
SUD Protect Shield Plus is a term insurance plan that protects the financial future of your family in your absence. If the life assured passes away during the policy tenure, the nominee receives a death benefit. Here are some of the highlighting features of SUD Protect Shield Plus:
1.Flexibility to suit your preferences
SUD Protect Shield Plus is quite flexible in nature. The flexibility of premium payment terms, mode, and policy tenure are offered so you can create a personalized plan for yourself and your family. You may choose to pay single, limited (5/7/10/12/15), or regular premium.
2.High sum assured
SUD Protect Shield Plus offers a high sum assured of up to ₹2 crores. All you have to do is carefully evaluate the needs of your family and then pick a plan that best satisfies the needs.
3.Easy eligibility terms
Anyone willing to invest in a term plan can choose SUD Protect Shield Plus. You can purchase the plan even at 60 years of age as the maximum age at maturity is 80 years.
4.Tax benefits
As a term plan, SUD Protect Shield Plus offers tax benefits as well. Under Section 80C of the Income Tax Act of 1961, you can enjoy tax deductions of a maximum ₹1.5 lakhs a year. The death benefit remains tax-free u/s 10(10D) of the Income Tax Act of 1961.
Conclusion
You are never too late to adopt a healthy lifestyle. Smoke-free and healthy habits not only improve your overall health and life expectancy but also bring you affordable life insurance plans. Life is too short to dangle between smoke and tobacco. Make the most of your life around your loved ones. Having a term insurance plan that guarantees financial protection to your family in your absence can be a great decision. Make a calculative move by assessing the current and upcoming financial needs of your family. Give yourself the much-needed peace.
Reference: SUD LIFE PROTECT SHIELD PLUS UIN: 142N088V02
Reference: SUD LIFE PROTECT SHIELD PLUS UIN: 142N088V02
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Protect Shield Plus” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.
SUD Life Protect Shield Plus | UIN: 142N088V01 | A Non-Linked Non-Participating Pure Risk Premium Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited |IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
SUD Life Protect Shield Plus Plan is a term plan and does not offer any maturity benefits.
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
SUD Life Protect Shield Plus | UIN: 142N088V01 | A Non-Linked Non-Participating Pure Risk Premium Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited |IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
SUD Life Protect Shield Plus Plan is a term plan and does not offer any maturity benefits.
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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