Term Life Insurance for Smokers vs Non-Smokers in 2025

In 2025, an estimated 5.6% of Indians aged 15+, roughly 6 crore people, are smokers. Meanwhile, only 34% of Indians own a term insurance plan. Statistically, there’s a clear overlap. Term Insurance for Smokers isn’t just accessible, it’s essential. Smokers tend to live about a decade less than non-smokers, making financial protection for their families far more pressing.

Yet, the same increased mortality risk that makes term insurance more important for smokers also means they pay noticeably higher premiums (in the range of 60%-100%) compared to non-smokers.

In this blog, we’ll delve into the intricacies of smokers vs non-smokers and how they relate to term insurance coverage. We’ll discuss how insurers classify you, the premium gap, the risks of non-disclosure, and how quitting smoking can change your coverage story.

How do insurers define a smoker?

In life insurance, a “smoker” isn’t just someone who smokes daily. If you’ve used any form of tobacco or nicotine, including cigarettes, bidis, cigars, chewing tobacco, hookah, e-cigarettes, or vaping, within a specific period before applying, you’re classified as a smoker.

While the most common cut-off is 12-24 months, each insurer sets its own look-back period through actuaries using statistical data:

Insurer	Tobacco-free period to qualify as a Non-Smoker
HDFC Life	24 months
ICICI Prudential	36 months
Axis Max Life	24 months
Bajaj Allianz	12 months
TATA AIA	12 months

This means occasional smoking can still put you in the smoker category. Even one cigarette or hookah session within the look-back period (the duration in the recent past during which insurers assess your smoking history) counts.

What if you smoked 6 months ago but passed the medical test?

Even if your cotinine test (which detects nicotine in the body through blood or urine tests) comes back clear, you are still obligated to disclose past smoking if it’s within the insurer’s declared time frame.

Not doing so is considered material misrepresentation and can lead to claim rejection later, especially if death occurs during the first 3 years of the policy (the contestability period).

Note: In our experience, the cotinine test is typically conducted through a urine test; however, insurers may also request a blood test.

Bottom line: Always disclose honestly, regardless of your Smokers vs Non-Smokers status. Because insurers care about your history, not just your test results.

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What happens if I quit smoking after taking the policy?

If you were a smoker at the time of buying your term insurance policy and later quit permanently, your premiums will not be reduced. Term insurance underwriting is done only once, at the time of purchase, based on your health, lifestyle, and risk profile.

That means:

• No re-evaluation or premium adjustment is possible for an existing policy.
• The same principle applies in reverse. Just as your insurer won’t increase your premium if your health worsens (e.g., you develop a critical illness), they won’t reduce it if your health improves.

How to benefit from quitting:

If you’ve been tobacco-free for the duration defined by your insurer (12–36 months, depending on the company), you can:

1. Apply for a new term plan as a non-smoker at lower premiums.
2. Decide whether to keep both policies or replace the older one. 

Note: Only replace your older policy if the premium savings have a significant impact, as discontinuing the old policy would also mean forfeiting the time served, which counts toward the completion of the contestability period.

What happens if I start smoking after taking the policy?

If you were a non-smoker at the time of purchase and later started smoking:

Within the first 3 years (contestability period):

Your policy remains valid; however, if death occurs during this period, the insurer may conduct an investigation. They can reject a claim only if they find evidence that you were already smoking before purchase and you haven’t disclosed it.

After 3 years:

There is no obligation to inform your insurer, and your premiums will not change. Even if death is linked to smoking, the claim will be honoured.

From a claims perspective, starting to smoke after getting a policy doesn’t invalidate your coverage, but it will affect your health and life expectancy.

What if I was a smoker before purchase and declared it honestly?

If you disclosed your smoking habit truthfully at the time of buying the policy, your premiums would have been calculated accordingly at the higher smoker rate. Your policy remains valid, and your claim will be honoured as long as all other terms and conditions are met, whether you continue smoking or quit later.

What if I was a smoker before purchase but did not declare it?

Not disclosing your smoking habit is considered a material misrepresentation. If the insurer discovers this, particularly during a claim investigation, they can cancel the policy and reject the claim. This risk is highest in the first three years, but even after that, claims can be denied on the grounds of fraud.

What if I quit smoking before purchase and applied as a non-smoker?

Most insurers require you to be tobacco-free for 12 to 36 months before classifying you as a non-smoker. If you apply as a non-smoker before meeting this requirement, you are misrepresenting your history, which can lead to claim rejection later. The safer approach is to declare your past smoking honestly, even if you have recently quit.

Smoking & Tobacco Use: What Insurers Ask in the Proposal Form

When applying for term insurance, insurers rely heavily on your answers in the proposal form to assess your smoking status and related health risks. These questions are designed to capture not just your current habits, but also your past usage and any health conditions that might have resulted from it. Expect to be asked about:

1. Smoking Status

• Do you currently smoke? (Yes / No)
• Have you ever smoked in the past? (Yes / No)
• If yes, you’ll be asked follow-up questions to clarify frequency and history.

2. Type of Tobacco Consumed

• Cigarettes
• Bidis
• Cigars
• Chewing tobacco (e.g., Gutkha, Khaini)
• Pan masala with tobacco
• Hookah / Shisha
• E-cigarettes / Vaping
• Others (specify)

3. Duration & Frequency

• Since when have you been consuming tobacco products? (years/months)
• How frequently do you consume them?
• Number of cigarettes/bidis per day
• Number of times you chew tobacco per day/week

4. Quitting History

• Have you quit or been advised to quit smoking/tobacco? (Yes / No)
• If yes:
  • When did you quit? (date/month/year)
  • Have you remained tobacco-free since? (Yes / No)

5. Medical Conditions Related to Tobacco Use

• Have you been diagnosed with or treated for any illness related to smoking/tobacco use (e.g., COPD, bronchitis, oral cancer)?

Why this matters:
These disclosures directly influence how you are classified (smoker vs. non-smoker), the premium you pay, and whether your claim is honoured later. Any omission or inaccuracy—intentional or not—can be treated as a material misrepresentation, putting your family’s financial safety at risk.

Ditto’s Advice

The bottom line, as it pertains to the debate over term insurance for Smokers vs Non-Smokers, is simple. Always disclose your smoking history honestly, even if you’ve only smoked occasionally or quit recently.

Term insurance underwriting is based on trust and accurate risk assessment. Misrepresentation might save you a few rupees today, but can jeopardise your family’s claim tomorrow.

Smokers do pay higher premiums, but that’s the trade-off for ensuring your loved ones are financially protected. And if you quit smoking and remain tobacco-free for the required period (12–36 months, depending on the insurer), you can always apply for a fresh policy at lower non-smoker rates.

Term Plans for Smokers (2025) That Make Ditto’s Cut

Before we jump into the list, here’s how we decide what “best” means. At Ditto, every plan goes through our six-point evaluation framework. This framework is why we’re comfortable using the word “best.” It doesn’t mean these are the only good plans, but that they stand out after being scored across all six pillars. You can learn more about how we evaluate the plans here.

The table below enlists the top 4 recommendations for Term Insurance for Smokers, and also illustrates the difference in prices in term insurance for Smokers vs Non-Smokers:

Term Insurance for Smokers	Premiums for a 30-year-old male smoker for a 1 crore cover till 65 years old (without discounts)	Premiums for a 30-year-old male non-smoker for a 1 crore cover till 65 years old (without discounts)
Axis Max Life Smart Term Plan Plus	₹25,355	₹14,086
ICICI Prudential iProtect Smart Plus	₹24,382	₹14,343
Bajaj Allianz Life eTouch II	₹26,003	₹14,814
TATA AIA Sampoorna Raksha Promise	₹23,693	₹14,368
HDFC Life Click 2 Protect Supreme	₹29,408	₹16,804

As the table indicates, smokers pay about ₹10,500–₹11,000 more per year than non-smokers for the same ₹1 crore cover till age 65, which is roughly a 70–75% higher premium.

Note: Even though Ditto highly recommends HDFC Life’s Click 2 Protect Supreme for non-smokers, we do not extend the same recommendation when it comes to Term Life Insurance for Smokers. This is because HDFC Life, as an insurer, takes a strict stance on smoking and charges nearly 100% higher premiums for smokers compared to non-smokers for the same coverage, which seems a bit excessive to us. Instead, you can opt for any of the other plans mentioned in the table above, especially Axis Max Life’s Smart Term Plan Plus or ICICI Prudential’s iProtect Smart Plus.

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Conclusion

Whether you’re a smoker or a non-smoker, term insurance is one of the most important financial tools you can own. For smokers, the higher premiums are a reflection of increased health risks, but they also ensure that your loved ones are protected no matter what.

The key is simple: be transparent about your smoking history, understand your insurer’s classification rules, and choose a plan that balances affordability with strong claim settlement.

Over time, if you quit and maintain a tobacco-free lifestyle, you can revisit your options for lower premiums. The right term plan today can give your family financial security for decades to come.

Still unsure? Book a free call with Ditto’s experts to find the perfect plan for you.

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