Cigarette smoking is injurious to health. I don't need to tell you how dangerous smoking is to your health and long-term well being. Just switch on the TV and you will see, Cigarettes and Tobacco are injurious to your health. Quit smoking before it's too late.
Cigarette smoking can also be injurious to your finances. I am not talking about the cost of cigarette packets. I am talking about the insurance premiums. Smoking cigarettes means you pay higher premiums on your life insurance plans and health insurance plans.
How to save on insurance premiums? This is the way. Want to know more on term life insurance and health insurance plans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
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You badly need life insurance and visit a reputed insurance comparison website, to get a rough idea on insurance premiums. You can calculate how much life insurance you need, using our Human Life Value Calculator.
If you visit an insurance comparison website, you will have to fill your name and date of birth. You will also be asked, do you smoke or have you consumed tobacco in the last 5 years. The insurer wants to know if you smoke as it is crucial in deciding insurance premiums. So, he will ask you a simple question, Do you Smoke, Yes or No?
Insurance works on a simple principle of pooling and risk sharing. The insurer forms a common pool of people who share risk and gives them insurance coverage against this risk. In exchange the people pay the insurance premium.
So why is the insurer so concerned about your smoking habit? If you smoke or are addicted to nicotine, there are high chances you could fall prey to heart and lung diseases, cancer or pulmonary diseases.
You are a grave health risk to the insurer and chances of a claim, (particularly a huge claim), are very high. What about the other people who come under this pool and don't smoke?
There is a high chance these people will outlive the term life insurance plan. Now, this is against the principles of insurance. The insurer ensures that all people in the common pool (citizens who are insured), are treated equally. Smokers have a greater chance of suffering from lifestyle diseases, or health risks, and insurers charge them higher premiums.
If you quit smoking, your term life insurance comes free of cost. A single cigarette can cost anywhere between Rs 15-18.
The premium of a term life insurance plan with sum assured of Rs 50 Lakhs to Rs 1 Crore a year, can be around Rs 18-22 a day. (This is for a young healthy male who is 30 years of age and the term life insurance policy term is 30 years).
So quit smoking and your term life insurance plan comes nearly free. Be Wise, Get Rich.
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