What Happens If You Start Smoking After Taking Term Insurance?

Most people think their life insurance policy is set in stone once it's issued. But what happens if your lifestyle changes? Say, you start smoking after buying your term insurance? Does your insurer need to know? Will your premiums go up? And more importantly, could this affect your family’s claim if something happens to you? These are common questions, especially for those who initially bought their policy as non-smokers but picked up the habit later. So, let’s clear up the confusion.

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Overview

How Much More Do Smokers Pay for Term Insurance?

Smokers typically pay significantly higher premiums than non-smokers due to increased health risks.

The difference in premiums between smokers and non-smokers can be substantial,  often ranging from 50% to 100% higher for the same age, sum assured, and policy term. This is because insurers treat smoking as a key risk factor linked to higher chances of lifestyle diseases, hospitalizations, and early mortality.

For example, let’s say a 30-year-old non-smoker is looking to buy a ₹1 crore term plan for 30 years:

• Non-Smoker Premium: ₹10,000–12,000 annually
• Smoker Premium: ₹18,000–22,000 annually

The exact premium can vary depending on the insurer, your overall health profile, and whether you're a regular or occasional smoker. Some insurers may also differentiate between tobacco chewers and cigarette smokers.

Over the course of 30 years, this could mean paying significantly more as a smoker. This is why many people are tempted to misrepresent their status, but as explained earlier, that comes with serious risks.

If you're honest and upfront, you may pay more, but you protect your family from the possibility of a claim rejection when it matters most.

Should You Declare Smoking at the Time of Buying Term Insurance?

When you apply for a term insurance policy, one of the first questions you’ll face is whether you’re a smoker or a non-smoker. This is an important part of your proposal form, and it directly affects your risk profile and the premium you’re quoted. Non-smokers typically pay lower premiums, while smokers may face higher charges (usually 50-100%) due to the increased risk to health. However, before we answer this question, let’s first understand this:

Your smoking status at the time of purchase directly affects your premium and forms the basis of your insurance contract.

Who is considered a smoker by life insurance companies?

Here’s what a top advisor at Ditto says:

Insurers rarely ask if you smoke or not. Instead, they ask if you have smoked in the last 12-36 months. This means that even a single puff in the last 12-36 months may classify you as a smoker for underwriting purposes.

Even a single puff within the last 12–36 months can classify you as a smoker during underwriting.

Here’s what happens if you do not declare smoking to your insurance company:

And if you don’t declare your smoking status, the insurer may also require medical tests or additional disclosures. For example, some insurers request a urine cotinine test (a nicotine metabolite) to verify tobacco use for people who declare themselves as non-smokers. Based on your responses and medical results, your application has been underwritten, and the premium has been finalized.

The takeaway is this: the insurer makes a decision based on your status at the time of purchase. This becomes the foundation of the contract between you and the insurer.

What Happens If You Start Smoking After Policy Issuance?

If you honestly declared your non-smoking status while purchasing the policy and later picked up smoking, this doesn’t count as misrepresentation. The contract was signed in good faith based on accurate information at the time.

Most insurers do not revise or cancel your policy if your lifestyle changes after the policy has been issued. That means you won’t face a sudden premium hike or a policy suspension just because you’ve started smoking after issuance.

However, your new habit could impact your future interactions with insurance companies. For example, if you apply for a new plan or attempt to enhance your existing coverage, your status as a smoker will likely result in higher premiums or more stringent medical checks for the additional coverage.

But your current policy? That remains intact as long as you were truthful when signing up.

If you were honest during the application, starting to smoke later won’t affect your existing policy or premiums.

Are You Required to Inform the Insurer After You Start Smoking?

No, you’re not legally required to notify your insurer about lifestyle changes, such as taking up smoking, after the policy has been issued. The obligation to disclose applies only at the time of purchase. However, we feel it is better to mention this voluntarily so that it does not cause any issues during claims.

Your insurance policy is a contract based on the declarations you made at the start. Unless your policy specifically requires you to notify the insurer about lifestyle changes, which is extremely rare, you are under no obligation to share such updates after issuance.

That said, your smoking habit becomes relevant if you later apply for a policy upgrade, a new rider, or an increase in your cover. In such cases, insurers will conduct a fresh underwriting review, and your smoking status may influence the terms and pricing of the new coverage.

There’s no legal obligation to disclose lifestyle changes after issuance, but transparency is wise if you're modifying your coverage.

Can a Claim Be Rejected If the Insured Starts Smoking Later?

No, if you correctly declared your status during the initial application and your premiums are paid regularly, starting to smoke later doesn’t give the insurer a reason to reject the claim.

Claim rejections are typically triggered by material misrepresentation or non-disclosure at the time of purchase, rather than by lifestyle changes that occur after the policy has started. The insurer cannot invalidate a policy because you began smoking years after it was issued, especially when this behavior wasn’t hidden or relevant during underwriting.

Even if the insured passes away due to a smoking-related illness, the insurer has to honor the claim as long as the initial disclosure was honest.

As long as you were truthful when applying, claims cannot be denied solely due to post-issuance smoking habits.

Will Premiums Increase if You Disclose New Smoking Habits?

For your existing policy, the premiums remain unchanged even if you voluntarily inform the insurer about your new smoking habit. Since the insurer doesn’t reassess old contracts based on new habits, there’s no retroactive premium revision.

Your current policy’s premiums remain unchanged, but any future policy or rider purchase will reflect your new smoking status.

Buying additional coverage or riders after you start smoking:

However, if you plan to buy additional coverage, opt for a rider; then the insurer will re-evaluate your health status at that point. And yes, being a smoker will lead to higher premiums under new or modified policies.

So if you’re planning any changes to your coverage, expect fresh medical underwriting based on your current lifestyle, including smoking habits.

What If You Lied About Being a Non-Smoker While Buying the Policy?

This is where things get serious. If you claimed to be a non-smoker while buying the policy, but were actually smoking at the time, that’s considered a material misstatement. If the insurer finds this out during claim settlement, either through medical records or post-mortem reports, they can investigate and potentially deny the claim.

Misrepresenting your smoking status at purchase can lead to claim rejection, especially if discovered during the contestability period.

Here’s what happens when you start smoking within the first three years of policy purchase:

This risk is even higher during the first three years of the policy, known as the contestability period. During this phase, insurers are more likely to question the accuracy of disclosures and scrutinize medical histories in detail.

Therefore, under IRDAI’s rules, the first 3 years of your policy are the "contestability period." During this time, insurers can contest claims based on non-disclosure. Even if the claim arises after this period, if the insurer can prove that smoking began before the policy issuance and was intentionally concealed, the claim could be disputed. This is why it’s critical to disclose your smoking status honestly during application, not just for lower premiums, but for claim security.

Example: In 2023, an insurer rejected a ₹1.2 crore claim after discovering through hospital records that the policyholder had a tobacco use history concealed at purchase.

During the first three years, known as the contestability period, insurers can investigate and deny claims based on material misstatements.

How Insurers Detect Smoking During Claims or Renewals

Insurers rely on multiple data points to validate claims, especially in high-value or early-death cases. If the cause of death relates to a smoking-linked illness like lung cancer or heart disease, they may dig deeper into medical records.

Here’s how insurers detect smoking habits:

• Medical history and diagnostic reports from hospitals.
• Prescriptions that indicate tobacco-related treatments.
• Pathology tests or cotinine markers in prior reports.
• Post-mortem findings in cases of unnatural death.
• Statements from doctors or hospital discharge summaries.
• Witness reports from caregivers, colleagues, friends, social media, or even family members.

However, these checks are only a concern if the insurer suspects non-disclosure at the time of purchase. If you picked up smoking later and didn’t hide it when applying, such investigations won’t affect your claim outcome.

Insurers can use medical records, test reports, and even social media to uncover hidden smoking habits if misrepresentation is suspected.

Tips to Ensure Your Term Policy Remains Valid

To make sure your term insurance policy continues to protect your family when it matters most, keep the following in mind:

1. Always declare your smoking status honestly at the time of purchase. Saving on premiums isn’t worth risking a rejected claim years down the line.
2. Don’t try to mislead the insurer by quitting briefly before medical tests just to qualify as a non-smoker. If you resume the habit and it's traceable, it could come back to haunt your family.
3. Keep your contact and nominee details up to date regularly. Many claims are delayed because nominees can’t be reached or documentation is incomplete.

Being transparent from the start ensures that your loved ones won’t face hurdles at a difficult time.

Top Term Insurance Policies for Smokers in India in 2025

We analysed IRDAI annual reports, premium charts, and exclusion clauses across 17 major insurers, and here are some of the best plans out there, not just for smokers, but for anyone looking to buy a term insurance policy:

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Conclusion: Smoking After Policy Start Won’t Hurt, If You Were Honest

If you were truthful about your smoking status when you bought the policy, you don’t have to worry. Starting to smoke later doesn’t invalidate your policy, raise your premiums, or jeopardize the claim as long as there was no misrepresentation at the time of purchase. Here’s what you should know:

1) If you were honest at the time of purchase, you’re protected.

Disclosing that you were a non-smoker during the application means your policy remains valid even if you start smoking later. Your premiums stay the same, and the insurer can’t reject a claim on this basis alone.

2) If you hid your smoking status, it could lead to a claim denial.

Concealing the habit to get a lower premium may be treated as misrepresentation. If the insurer finds out, especially during claim processing, they can deny the payout.

3) When in doubt, check with a trusted insurance advisor.

While most policies don’t require you to disclose lifestyle changes after issuance, it’s still good practice to ask if you're unsure. Clear communication upfront can prevent problems later.

Bottom line: Be honest when you apply, understand how lifestyle changes affect your coverage, and speak to your insurer or advisor if you’re unsure about your responsibilities.