Term insurance – Smoker/non smoker

POSTED BY Vivek ON August 30, 2013 12:28 am COMMENTS (11)

Dear All,

I want to buy best term insurance and having below confusions

1.       Which company having best claim settlement ratio which help my family in case of death

2.       Should I go for online or offline as I advised by many people that buying form good agents will help family member to settlement of claim

3.       If online than which is the chipper and good company

4.       If offline than which is the chipper and good company

5.       Should I pay premium regular or 5-10 year interval

6.       I am regular tobacco user and recently stopped that (last 4 months), what should I mention in policy – smoker-nonsmoker or any option available for such type of case, as a human nature I don’t want to pay high premium of smoker zone,  is there any tips/tricks to pay nonsmoker premium,

7.       Is there any company which declare person as nonsmoker if he or she left or stopped last 2-3-5 year

8.       Any difference between smoker and tobacco user – as I am not smoking cigarettes

9.       What is the preferred smoker, having drink/smoke/tobacco on any special occasion will declare person as smoker that also after of before buying policy?

10.   What if I mention nonsmoker in policy and stopped tobacco after that, will company reject my claim on accident or other illness death after 5-6 years which is not due to tobacco

11.   Which company having such smoker definition available on online buy

12.   I am having confutation on sum insured and assured also

  Other details


1.       MAX life insurance – PRTP plan is good?

2.       Annual salary 3,00,000

3.       Monthly expenses – 15000 which current family size of 2 dependent member (wife + 1-child)

4.       Having 3-4 policy with 2.50 lacs SA -SI


As finally, I have left/stopped tobacco since last 4 month and will not use it again in future and I don’t want to pay smoker premium to insurance company , please provide your valuable suggestions  

11 replies on this article “Term insurance – Smoker/non smoker”

  1. Vivek says:

    Rizwan Rakhangi and ashal … please help to clea qry

  2. Dear Rizwan, what smart things can be planned later on after 2-3Y? I’m curious to know. 🙂



  3. Rizwan Rakhangi says:


    First thing first…***This is a Term insurance and will only benefit for any accidental death or accidental loss NOT if you get sick because of your tobacco or natural or heart attack death caused by tobacco **

    ****Second thing second***Tobacco can be reason for cancer but NOT for Accident as accident can happen with any one EVEN NON TOBACCO USER like Amitabh Bachchan………….heiyyyy

    Go for it as Non Tobacco User BUT make sure you don’t consume it ever 3-4 years all symptom will be normal (Again iam considering you are taking a pure term insurance, not a life or medical insurance ) after 3-4 year do a checkup and also go for medical and life insurance

    **But lets also assume the 2 way what if cancer detected after 2 year :(… as i mention before the chances are very less of getting claim in first 2 years so either way tobacco user or non tobacco user chances of claim is less so you loose nothing and after two year if detected cancer by any chance let me know here will make some smart decision later

    As always thank you for reading


  4. Dear Vivek, if you so sure about your life, you should not purchase Term cover at all. By telling lie about your habits (chweing Tobacco), whom you are making fool of? If later on Insurer finds it that you supressed a fact & incidently the death happens due to Tobacco related issues, the claim ‘ll not be honored. So decide on your own, what is god for your family? saving 3000 Rs. now by telling a lie or having a peace of mind by declaring all the facts & paying a higher prem.



    1. Vivek says:

      Hi Ashal,
      Yes I am sure on healthy status about my life for 5 years, simple ashal, here we are making fool to insurance company and why not,
      Its clear ashal, think if there is no any problem with me till 25 year then count on extra 3000 premium!!!, we are taking only risk here.
      We know insurance company recruit very smarter people then us who calculate each and every thing for this win – win products? But think on different way beyond the rules and norms,
      If we can make them fool its not our problem its their mistake on product, if you aware some scams like people taken insurance on name of death person and company investigated that published whole frauds, some may be successful on that till company don’t know. And people still doing some scams with insurance but we don’t know the way until they trapped, investigate every claim will not affordable to company at all
      Okeeey, do you fill that insurance companies are very transparent to the customers?? They will not miss any chance to fool people for sale products, have you found any clear & visible definition about smoker and non-smoker while buying the on line term insurance?
      What to select while buying online term insurance if I left some before and will start smoke after.
      It seems they want us to mention current situation only. I know term and condition may cover this but such definition or demarcation should be visible clearly on purchase portal after all it impact on premium amount.

  5. Rizwan Rakhangi says:

    Go for HDFC , Aviva , ICICI etc, Sign up online is fine ….

    Does’t matter if it is a pure term insurance as it will give you only accidental death or other accidental which has nothing to with your tobacco….But

    As you are a tobacco user consult with doctor if you have any kind of cancer or chances of cancer if “NO”

    (If yes, mark it as tobacco user as it can difficult for claim)

    Make policy as non tobacco user because less are the chances of getting claim if anything happen in 1st Two years and if you quit tobacco after 2 years all symptom and many things will be healed.

    (Iam considering you as tobacco user such as channi, gaichap, OM Pudi, or Gutka , if you are a cigarette smoker above advised is not applicable)

    As always thank you for reading


    1. Vivek says:

      hi Rizwan,
      i am not cigarette smoker and currently not having any type of cancer or any chance of cancer atleast next 3-4 year as i am not regular tobacco user,

      if we mentioned wrongly like as non smoker than calculation loss if only for 2-3 year, if premium is 5000, thn can loss 20000 for 4 year, but if we select smoker than premium high every year 3000,

      so if i am select non smoker and i already stopped tobacco use, and taking chance with this to hope 5 year will pass without any problem

  6. Dear Vivek, what is best settlement ratio? No Indian insurer has 100% settlement ratio. Even LIC does not has 100%. Please do tell me why?

    For prem. of cpurse LIC is not the cheapest & those who are the cheapest are not having the best settlement ratio. How w’d you pick then? Either compromise on settlement or on prem.

    How a large customer base ‘ll help you?

    Internet is full of both positive & negative feedback on the two things you nare asking for. How w’d you rate than

    Personally for my own term insurance, I have purchased it from Aviva. How my selection is going to help you to decide?



    1. Vivek says:

      Hi Ashal, Thanks,

      We want best settlement ratio not 100%,
      Large customer base at least help me to build trust on company
      We have to select from something, one who having good settlement ratio and cheapest premium by evaluating data and records, we can’t stop buying term insurance if those who are the cheapest are not having the best settlement ratio
      If you only taken Aviva, then it will not help me, but if 100 people say that they have Aviva, than it will help me
      Could you help me to clear my confusions on smoker/non smoker qry.

  7. Vivek says:

    They should have best settlement ratio,
    chipper premium
    having large customer base with trust
    good customer care and support

  8. Dear Vivek, Can you define this BEST insurance company thing in your own words?

    We can discuss all other queries after that in detail.



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