How a smoker can buy health insurance
One of the biggest myths in personal finance is that smokers can't get health insurance. Contrary to popular belief, health insurance companies do offer coverage to smokers albeit with different terms and conditions as compared to non-smokers. Do keep in mind that being a smoker may force you to avail health insurance at a higher premium. However, this must not deter you from availing health insurance as smokers are more prone to lifestyle diseases than non-smokers.
How can a smoker get a health insurance policy?
Health insurance companies define a smoker as a person who uses nicotine in any form. Insurers insist on medical tests to detect regular smokers and determine the premiums for coverage. Traces of nicotine can be detected in your blood, urine, hair, and saliva. The length of time nicotine stays in your system depends on how often you smoke, age, and general health condition.
Insurers ask about your smoking habits, when you sign up for a health insurance plan. The common questions are: Do you smoke? Have you been using tobacco in the last 6 months? Insurers ask for the number of cigarettes smoked or health conditions suffered because of the smoking habit. If you have declared the smoking habit, insurers may insist on medical tests to meet their underwriting norms. They also consider the age and sum assured when offering a health insurance plan. It is advisable for a smoker to get his/her medical tests done by the insurance company at the time of buying the policy itself to reduce area for dispute at the time of claim.
A smoker must update the insurer on lifestyle changes to ensure he doesn't face any problems during claim settlement. Updation on lifestyle changes could be an increase in the number of cigarettes smoked or deteriorating health.
The health insurance company decides premiums based on the state of your health. The insurability of smokers is determined by the seriousness of pre-existing lifestyle diseases like diabetes and hypertension. Insurers may refuse policies to smokers suffering from Type 2 Diabetes.
Non-smokers with no pre-existing illnesses can easily avail health insurance with minimum documentation. If you smoke a few cigarettes a day, suffer no pre-existing illnesses and are generally fit, you can easily avail health insurance. Any complications like a lung condition suffered by smoking at a later time are covered in the health insurance plan. Health insurance companies reject proposals of those who smoke more than 20-40 cigarettes a day.
Are there different health insurance plans for smokers and non-smokers?
Health insurance companies offer the same plans to both smokers and non-smokers. Premiums are loaded on those who smoke more than 10 cigarettes a day. If you smoke 2-4 cigarette packets a day, health insurance Companies may reject the proposal.
Insurers look at daily tobacco consumption and status of a person's health. Many health insurance companies insist on medical tests if a prospect is over 40 years or seeks a high sum assured. If the medical test reveals a particular health complication, that specific ailment is excluded in the initial years of the plan.
Chain smokers and addicts may face an outright rejection. Many insurers don't insist on a higher premium for smokers unless there are health complications. For example, Religare Health Insurance Company doesn't load premiums for smokers. The underwriting norms vary across health insurance companies. This is why you have some health insurance companies charging different premiums for smokers and non-smokers. Taking up smoking cessation programs by insurers lowers health insurance premiums for smokers. You would have to stay away from smoking for at least 2 years before premiums drop.
Why does a smoker need health insurance?
Many smokers believe that insurers consider all future ailments to be the result of smoking and would reject applications. This is an unnecessary concern. Make honest and proper disclosures and go through the medical test. A smoker must insure himself against critical illnesses which could arise in the future with the smoking habit. Respiratory illness, stroke, hypertension, heart disease, lung cancer, chronic obstructive pulmonary disease are serious illnesses affecting smokers.
Many smokers don't avail health insurance believing the claims would be partially or fully rejected. A claim is rejected for non-disclosure of a related ailment caused by smoking at the time of buying the policy. Health insurance companies have a waiting period of 2-4 years before pre-existing diseases are covered. The pre-existing disease conditions are the same for smokers and non-smokers, though there might be some exclusion for smokers. There's a mandatory waiting period of 1 month from the date on which the policy was availed, where only accidents are covered. There's a 2 year waiting period for conditions like kidney stones and hernia and a 4 year waiting period for major pre-existing diseases.
If you have been dishonest and this includes not updating the lifestyle changes, insurers reject the claims. Health insurers conduct medical tests at the time of claims and can detect lifestyle changes like a declaration of smoking 2 cigarettes a day, while actually smoking 6 cigarettes a day. The nicotine shows up in the blood and urine tests. In all this, the higher premium and waiting period are worth it, as hospital bills can wipe out your bank account.
The claim settlement process for both smokers and non-smokers remain the same. Insurer's get to know of a customer's status as a smoker at the time of policy purchase based solely on the self-declaration. Research shows that most people don't disclose their smoking status when availing health insurance. If the insurer finds you are a smoker at a later stage, and this crucial information was not disclosed, it is willful non-disclosure of material information. This leads to the rejection of your claim.
Health insurance companies cover smokers as this segment is large. If you are a smoker or have given up smoking long ago, disclose it. Be honest with the facts on your health when signing up for a health insurance policy, even if you are a smoker.