Difference Between Health Insurance Premium For Smokers And Non-Smokers

Criteria of a smoker as per health insurance companies

Normally, a person is tagged as a smoker who consumes tobacco, cigar, cigarette, nicotine etc. In case of health insurance companies, they enquire a person about his/her habits of smoking and accordingly perform a pre-medical health checkup. On the basis of this check-up, a person is classified into 4 diverse categories. These categories are namely:

• Category of Non-smokers
• Category of Preferred smokers
• Category of Typical smokers, and
• Category of Table rate smokers

This way the insurance companies decide the health insurance premium for smokers as per the set categories. In terms of premium rate, the smokers who fall under the Table rate category are likely to pay the maximum premium. The typical and preferred category smokers can have some respite because they have lesser risk of getting smoking related diseases.

Are smokers allowed to get a health insurance?

Of course, smokers are allowed to get a health insurance policy. But a smoker has to pay higher premium on his/her policy as most insurance companies levy high premium rates on smokers. Be it any policy, the premium paid by smokers automatically increases as compared to non-smoking insurance policy owners. However, it entirely depends on the insurance company as to how much premium they want to levy on a smoker. In addition, the category of smoker that you are categorized into also decides the premium you are likely to pay.

Despite the premium rate, you should not be discouraged from getting an insurance policy for yourself as it is very important and can aid you in case of a medical emergency.

Can a smoker hide his smoking habits from an insurance provider?

There are strict legal action levied on the policy owner who lies about his/her habit of smoking. Thus, hiding about your smoking habit is not a good idea.  In case of an emergency, if smokers get hospitalized for a treatment related to their smoking condition, the insurance company will not provide compensation for their claims.  Also, the insured person (smoker) has to pay for the entire amount of the compensation from his/her pocket. Thus, it is best not hide your smoking habits while buying an insurance and reveal everything to the insurer.

However, in case a smoker decides to quit smoking to enjoy lower premium on insurance policy, then in that condition he/she has to quit smoking for minimum 2 years to be categorized as a non-smoker.

Reason for high premium rates for smokers

Here are some common reasons for high premium rates for smokers:

• Smoking is injurious to health as it can cause several chronic diseases.
• Smokers are likely to have diseases of the heart, lung, bronchitis and so on.
• Smokers are also likely to contract risky diseases.
• Smokers are likely to have a lower life-expectancy ratio than the non-smokers.
• The treatment costs of the various disorders in case of smokers is high, so the premium levied on smokers is also high.
• Unlike non-smokers, smokers are likely to claim their policy before a particular age.
• Premium amount depends on the insurance company. They differ as per the health condition of the customer.