A Complete Guide to Term Insurance for Smokers

Term insurance for smokers is simply term insurance that’s priced and underwritten based on tobacco usage. The core product doesn’t change; it still pays a guaranteed lump sum to your nominee if you pass away during the policy term.

What changes is how the insurer evaluates risk. Since smoking increases mortality and disease probability, insurers treat smoker profiles differently, applying higher premiums, stricter medical checks, and overall tighter underwriting rules. This ensures the insurer can sustainably offer long-term coverage even for higher-risk applicants.

Let’s break this into three parts: Premium, Underwriting, and Policy Terms.

A. Premium
Smokers almost always pay noticeably higher premiums than non-smokers for the same cover amount, age, and policy term. This difference isn’t arbitrary; it is based on statistical evidence and claims history across the insurance industry.

Here’s how insurers calculate premiums for smokers:

1. Higher Mortality Risk → Higher Price
   Insurers charge smokers higher premiums because actuarial data shows they face a much greater risk of heart disease, cancer, respiratory illness and stroke. These conditions increase the chances of an early claim, so insurers apply risk loading by raising premiums to match the higher mortality risk.
2. Typical Smoker Premium Uplift
   Premiums for smokers are usually 60 to 100% higher than those for non-smokers, and sometimes more. Insurers maintain standard smoker and non-smoker rates, so there is no separate pricing for light, heavy or occasional smoking. 
   
   If a smoker also has health conditions such as hypertension, diabetes or obesity, underwriting becomes stricter and may result in significantly higher premiums or even policy rejection.
3. Premium Varies by Type of Tobacco
   Insurers classify all forms of tobacco use under the smoker category, whether it involves cigarettes, bidis, cigars, chewing tobacco, gutka or even e-cigarettes and vaping. While all are treated as smoking for premium purposes, bidis and chewing tobacco typically attract higher loadings because of their strong association with oral cancer. 
   
   In contrast, the use of narcotics or substances such as marijuana, ecstasy or LSD leads to an outright decline of the application, as these are considered high-risk and non-insurable behaviours.

B. Underwriting Process 
Underwriting for smokers is more detailed because insurers want to understand the extent and impact of tobacco usage. The goal is not to reject smokers, it is to price them accurately.

Here’s how the underwriting journey typically works:

1. Proposal Form Questions
   Insurers begin underwriting by asking detailed questions in the proposal form, such as whether you smoke or use any form of tobacco, how often you consume it, how long you have been using it and what type of tobacco you use.
   
   Even a single instance of smoking in the last 12 to 36 months may classify you as a smoker, depending on the insurer’s rules.
   
   To be considered a non-smoker, insurers require a continuous smoke-free period. For example, Axis Max requires 2 years of no smoking, Bajaj requires 1 year, ICICI Prudential needs a 3-year smoke-free period, and HDFC typically mandates 2 years without tobacco use.
   
   Insurers use structured questionnaires to assess tobacco use, frequency, and duration during underwriting. ICICI Prudential’s official Smoking/Tobacco
   
   Questionnaire is a good example of how these questions are documented in real applications. View the questionnaire here.
2. Medical Tests (if required)
   For higher cover amounts or older applicants, insurers may request medical tests such as blood tests to check general health markers, ECGs or TMTs to assess cardiovascular function, and, in some cases, a urine cotinine test to detect nicotine metabolites.
   
   The cotinine test is typically conducted only for applicants who declare themselves as non-smokers. It is not required for those who already identify as smokers and are priced accordingly.
   
   If a non-smoker’s test results show nicotine traces or other inconsistencies, the insurer will reclassify the applicant into the smoker category.
3. Risk Classification
   Insurers assign smokers to specific risk categories based on disclosures and medical test results:

• Preferred Smoker: Applicants who use tobacco but show strong overall health indicators, normal vitals and clean medical reports. They receive the lowest premiums within the smoker category.
• Typical Smoker: The most common classification, these applicants use tobacco regularly and may have minor deviations in health parameters. Premiums are higher than those for preferred smokers but still within a standard range.
• Table-Rated Smoker: Smokers with significant health concerns, such as abnormal ECGs, reduced lung capacity or elevated clinical markers. They attract the highest loading charges, and insurers may also impose additional conditions or restrictions.

1. Final Offer
   Once underwriting is complete, the insurer issues a final premium and policy offer. You can accept or decline it; the insurer cannot change these terms later unless fraud is discovered.

C. Terms of the Policy 
The core structure of a term plan remains the same for smokers and non-smokers. Both receive identical features, including the death benefit, rider options, claim conditions, policy term choices and payment frequencies.

However, a few differences apply for smokers:

1. Rider Eligibility May Differ: High-risk smoker profiles, especially table-rated applicants, may not qualify for certain riders, such as critical illness covers.
2. Rider Pricing May Be Higher: Riders linked to illnesses more common among smokers (like critical illness) often carry higher premiums.
3. Stricter Conditions: Insurers may reduce the maximum eligible sum assured, restrict policy term options or request additional tests like lung function assessments before approving riders.

Always review the policy brochure to understand smoker-specific terms before you buy.

1. Higher Health Risks Lead to Higher Financial Risk
   Smoking increases the likelihood of major illnesses that might reduce or completely stop earning ability. If a health crisis affects your ability to work, your family may struggle to manage living expenses or long-term commitments. 
   
   A term insurance plan ensures that even if something unexpected happens, your family receives a large lump sum payout that protects their lifestyle and financial stability.
2. Protects Family from Income Loss
   Smokers face a higher probability of early mortality, which makes income protection especially important. If an unexpected event occurs, a term plan provides a financial safety net that helps your family manage essential living costs, maintain their lifestyle and handle emergencies without disruption. 
   
   It also supports long-term goals such as children’s higher education or major milestones.
3. Helps Clear Financial Liabilities
   Many households carry home loans, personal loans, education loans or credit card dues, and these obligations shift to the family if the primary earner passes away. 
   
   A term plan clears these liabilities instantly, preventing debt traps and protecting your family from financial strain or forced asset sales.
4. Safeguards Long-Term Goals Despite Health Uncertainty
   In some cases, insurers may apply restrictions if they assess your profile as high risk. They may reduce the sum assured, limit the policy term or request additional tests such as a lung function assessment before approving riders. 
   
   Always review the policy brochure to understand smoker-specific terms before buying.
5. Important for Everyone, but Essential for Smokers
   Term insurance benefits all earners, but it becomes crucial for smokers because they face a higher probability of early mortality, greater long-term medical expenses and a faster onset of lifestyle diseases. 
   
   With dependents often relying on a single income, a term plan provides vital financial protection.

Types of Term Insurance Classifications for Smokers

Tobacco use affects individuals differently, so insurers classify smokers into different risk categories based on medical tests, lifestyle patterns, and overall health profiles.

These categories help insurers determine how much additional premium loading to apply. 

These classifications also influence rider eligibility, policy approval speed, and the extent of medical underwriting required.

Preferred Smoker
A preferred smoker is someone who uses tobacco but shows excellent health markers during medical underwriting. These applicants usually have normal BMI, stable vitals, clean blood reports, normal ECG results, and no signs of early lifestyle disease.

Because their overall health is strong, insurers consider them lower-risk within the smoker pool.

As a result, premiums for preferred smokers are often the lowest among smoker classifications and may come reasonably close to standard smoker rates.

This category is relatively small because most smokers develop at least mild risk indicators over time, but qualifying for it can significantly reduce premium costs.

Typical Smoker
Most smokers fall into this middle category. A typical smoker is someone who uses tobacco regularly and shows minor or early-stage deviations in health parameters.

This may include slightly elevated blood pressure, mild respiratory symptoms, borderline test values, or higher BMI.

Premiums in this band are noticeably higher for non-smokers and preferred smokers. However, they still remain competitive and manageable, especially if the applicant does not have additional risk factors such as diabetes or cardiovascular issues.

This is the broadest classification, and many applicants are placed here after basic medical tests.

Table-rated Smoker 
This category includes smokers who show significant health complications or clear clinical red flags. These may include reduced lung capacity, abnormal ECG findings, elevated cotinine levels, recurring respiratory illnesses, or early signs of heart or metabolic disease.

For table-rated smokers, insurers apply a table rating, which means the premium increases in steps or slabs based on the level of risk.

This can raise premiums substantially compared to the typical smoker category. Some insurers may also impose restrictions or postpone issuance until the applicant improves certain health markers.

This classification signals high risk and often comes with stricter underwriting conditions.

Eligibility Criteria for a Term Insurance Plan for Smokers 

To buy term insurance as a smoker, you must meet certain eligibility requirements set by insurers. These criteria cover your age, income, policy duration, medical profile, and premium payment capacity. 

While smokers are fully eligible for term plans, insurers review applications more carefully because smoking increases long-term mortality risk. 

Understanding these criteria helps you prepare the right documents and set realistic expectations during underwriting.

Minimum Age
Most retail term insurance plans allow applicants to start at 18 years of age, for both smokers and non-smokers. While group policies may differ, 18 is the standard minimum for individual online plans.

Younger smokers also tend to receive better rates because the long-term health impact of tobacco usually increases with age.

Maximum Age
Most insurers allow entry into a term plan only up to age 60–65. Beyond this, new applications are typically not accepted. Coverage, however, can continue well beyond this age, with many plans offering maturity ages of 75, 85 or even 99 years. 

Approval at older ages comes with stricter underwriting, more advanced medical tests and closer scrutiny of tobacco use.

Minimum Term
Most online term plans offer minimum terms of 5–10 years because the product is meant for long-term protection. For smokers, short-term plans are rarely cost-effective since premiums are already higher. 

Choosing a longer duration (till age 60–70) offers better value and avoids the need to reapply later, when health risks and premiums increase.

Maximum Term
Maximum policy terms usually range from 40 to 67 years, depending on entry age and the insurer’s maturity age limit. For instance, if the maximum maturity age is 75 and you buy at 40, the longest term you can choose is 35 years. 

Smokers seeking long-term protection often opt for extended terms to avoid higher premiums and stricter underwriting later.

Sum Assured
Minimum sum assured amounts for online term plans usually start at ₹25–50 lakh, while higher covers like ₹1 crore or more require detailed underwriting. For smokers, larger sums often trigger advanced tests such as ECGs, chest X-rays or lung function assessments, which can affect classification and premium. 

Choosing the right cover is crucial; many applicants follow the rule of securing 20–25 times their annual income.

Premium Payments
Insurers offer multiple payment modes, including annual, half-yearly, quarterly and monthly, with annual payments usually being the most cost-efficient since they avoid instalment charges. 

Many plans also provide limited-pay options like 10- or 15-year payment terms, allowing smokers to finish paying premiums early while keeping full coverage for the entire policy duration. 

This is especially useful if future income is uncertain or if you want to avoid premium payments during retirement.

What Happens If You Don’t Tell Your Insurer About Smoking? 

This is one of the most common concerns raised during Ditto consultations. Many applicants wonder whether they should disclose their smoking habits, especially when they fear higher premiums. 

However, non-disclosure is far more costly than the increase in premium, because it affects the validity of the policy and the certainty of claims.

When you hide smoking information, the insurer evaluates your policy based on incomplete data. 

Since smoking is a major mortality risk factor, this becomes a serious issue during underwriting and at the time of claim.

Impact on Term Insurance Claims: Not disclosing smoking is treated as a material misrepresentation because it affects the insurer’s risk assessment and premium calculation. 

If the omission is discovered during claim investigation, the insurer has the legal right to question or reject the claim. Under IRDAI’s three-year contestability period, insurers can repudiate claims if they find evidence that smoking was hidden at the time of purchase. 

If hospital records, prescriptions or diagnostic tests reveal tobacco use within this period, the claim can be denied.

Consequences of Undisclosed Smoking Habits: If an insurer discovers undeclared smoking, several serious consequences can follow, often creating financial stress at an already difficult time. 

The claim may be denied, the policy may be cancelled and only premiums refunded, and the family could lose the full financial safety net. It may also make future policies harder or more expensive to purchase. 

Most nominees realise the issue only at the claim stage, when it is too late to fix. Any short-term savings from hiding smoking are never worth the risk of losing the entire benefit.

Policy Termination and Penalties for Smokers: Once non-disclosure is confirmed, insurers may take corrective action depending on the severity and how long the policy has been active. 

This may include terminating the policy, rejecting current or future claims, adding exclusions or reclassifying the risk category with revised premiums. These steps protect insurers from fraudulent disclosures but leave families exposed. 

The safest approach is full honesty at purchase so underwriting is accurate, premiums are fairly priced, and your nominee faces no complications during claims.

How to Choose Term Insurance for a Smoker?

Choosing the right term insurance plan as a smoker requires a more careful evaluation than simply comparing premiums. Smoking affects underwriting, medical tests, rider eligibility, and even the range of insurers willing to offer high coverage. 

A well-chosen plan protects your family for decades, while a poorly chosen one can leave gaps in coverage or lead to claim complications.

Here is how to make a confident, informed decision.

1. Always Disclose Smoking Honestly
   This is the most important step in the entire process. Your disclosure forms the foundation of the insurance contract. If you hide your smoking habit to get a lower premium, you risk the policy being rejected at the time of claim.
   
   Insurers verify lifestyle habits through medical tests, hospital records, and claim investigations. Any mismatch between your declaration and clinical findings can jeopardise your nominee’s payout.
   
   The short-term savings never justify the long-term risk. Being truthful ensures your policy is clean, compliant, and fully valid.
2. Compare Smoker Premiums Across Insurers
   Smoker premiums differ significantly between insurers because each company uses its own mortality assumptions, underwriting models, and risk bands.

For example:

1. Insurer A may price smokers aggressively and offer reasonable rates.
2. Insurer B may charge extremely high premiums for the same age, income, and sum assured.

1. Prioritise Claim Performance
   Premiums matter, but a reliable claims record matters more, especially for smokers who fall in a higher-risk category. Review key indicators such as the claim settlement ratio, amount settlement ratio, complaint ratio per 10,000 claims, solvency ratio and overall customer service experience. 
   
   These metrics show how consistently an insurer honours valid claims. Choose insurers with stable, transparent claim performance to ensure your family receives the payout when it matters most.
2. Choose Meaningful Riders
   Riders strengthen your term cover and are particularly useful for smokers, who face higher health risks.  A Critical Illness Rider offers a lump sum if you are diagnosed with serious conditions linked to smoking, such as heart disease, lung disease, or certain cancers. 
   
   A Waiver of Premium Rider ensures your policy stays active by waiving future premiums if you become critically ill or disabled. An Accidental Disability Benefit provides financial support if an accident leads to disability, which is valuable for those with physically demanding jobs or frequent travel.
3. Plan Your Medicals Strategically: Your medical test results play a significant role in determining your smoker classification and final premium. If you have recently improved your lifestyle, these changes can work in your favour. 
   
   Reduced tobacco use, better lung function, normal blood pressure or cholesterol, and improved fitness can help move you from a table-rated smoker to a typical or preferred smoker, lowering premiums. 
   
   Schedule your medicals when you are well-rested, hydrated, and at your best.
   
   Insurers do not apply a blanket smoker premium. While all tobacco users fall under the smoker category, the actual loading varies based on underwriting.

(30-Year-Old Male, Cover till Age 65) for Popular Term Plans

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Ditto’s Take on Term Insurance for Smokers

As a smoker, getting term insurance is not difficult, but it does require clarity and honest disclosure. Your premiums will be higher, and underwriting may be stricter, but these are manageable when you choose the right insurer and prepare for medical checks.

Focus on three things. First, disclose your smoking habit correctly. This protects your claim and avoids issues during the contestability period.

Second, compare smoker-specific premiums and evaluate claim performance, not just price.

Third, add riders that strengthen your cover, especially critical illness and waiver of premium.

With the right guidance, smokers can secure strong and affordable protection. If you are unsure how to position your application or which insurer suits your profile, speak to an advisor. A 30-minute conversation can save you years of confusion and give your family dependable financial security.