Smokers of the world, you have nothing to lose but your lives & monies

From an insurance standpoint, consumption of tobacco has a critical impact.

Every May 31, we observe World No Tobacco Day to raise awareness of the devastating impact of tobacco use, what measures can be taken to reduce its consumption, and to renew our commitment to healthier living.

Tobacco harms more than just health; it disrupts lives and livelihoods. Each puff leads to a vicious cycle of illness, medical expenses, and lost income. Second-hand smoke, commonly known as passive smoking, affects non-users, including children and the elderly. Tobacco consumption has a ripple effect with long-lasting consequences. Per WHO data, tobacco kills over 8 million people every year, including about 1.3 million non-smokers exposed to second-hand smoke.

Tobacco  and  critical illnesses

Tobacco consumption is a major risk factor for cardiovascular diseases, including heart attacks and strokes. The harmful chemicals in tobacco damage the lining of blood vessels, leading to higher blood pressure, faster heart rate, and an increased risk of blood clots. Smoking tobacco is also closely associated with respiratory ailments like chronic obstructive pulmonary disease (COPD) and chronic bronchitis. Tobacco use is also a major cause of various cancers, particularly oral. India accounts for a large proportion of oral cancer cases globally, of which the majority are attributable to tobacco use.

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Insurance implications

From an insurance standpoint, consumption of tobacco has a critical impact as it implies a higher quantum and frequency of claims. Hence insurers typically impose a higher premium  on health insurance policies for individuals who use tobacco.

Depending on the insurer and the type of tobacco use, premiums for users can be 30 to 40 percent higher than for non-users. According to insurance companies, a person who has used tobacco in any form in the last 12 months will be defined as a smoker.

Full disclosure

A tobacco user might be tempted not to disclose their habit to the insurer in order to avoid a higher premium or may feel it is not something worth highlighting. However, the consequences of non-disclosure may lead to claim rejection. Also, failure to disclose such lifestyle habits may be viewed as misrepresentation. If the insurer finds that incorrect information was given when the policy was bought, the insurer could terminate the policy. To avoid such unpleasant scenarios, it’s best to be transparent while opting for health insurance.

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The rewards of quitting

As an insurer, we have seen lives transformed, sometimes saved, by a simple decision to quit tobacco. It is definitely not an easy journey, but always worth it. This is a life-changing decision with significant health, financial, and insurance-related benefits.

From a health perspective, the body begins to gradually heal once a person quits tobacco, lung function improves, and the risk of heart disease drops. Also, the chances of developing cancer reduces significantly over time.

Financially, quitting tobacco can lead to substantial savings. The cumulative cost of cigarettes or tobacco can amount to a significant sum. The same money can instead be used to build a quality life.

Lastly, from an insurer’s perspective, the premiums for a tobacco user are much higher than for a non-user. People who quit may qualify for better underwriting terms and fewer exclusions.

In sum, quitting tobacco isn’t just good for your health, it’s a smart decision for your financial future and your ability to secure affordable, comprehensive insurance coverage.

The writer is Head – Health Administration,  Bajaj Allianz General Insurance.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with their financial advisor before taking any decisions.