Life Insurance Companies are following a core to end up paying of bad habits. Recently Birla Sun Life Insurance has launched a product which would reward people, who don’t smoke with a lower premium. Seeing this insurance company Religare Life Insurance, is also planning a product similar to the one mentioned above.
So if a person has quit smoking since past many years and have no family history of diseases then they would be charged Rs 11,500 as a premium for a term policy of 10 years with sum assured of Rs 1 crore against Rs 13,000 charged from a smoker.
Till then the life insurance companies asked the applicants to tick just on the option of smokers or non-smokers filling up a form without much distinction in terms of customization of the product.
A smoker is generally at a high risk as a result premiums would be charged up more than an normal person. The idea is to reward a healthy lifestyle and good habits which would in turn lower the premiums based on smoking habits and family background.
This gives us an idea that you pay less if you are a non-smoker and have a good family history. Such policies are very common in countries which have evolved themselves as life insurance market leaders with people having lesser amount of bad habits are rewarded with low premium.
To determine the effectiveness of a non-smoker person various tests would be done that will check the nicotine level in the body showing whether the person consumes any substance having tobacco in them or not.
Till then the life insurance companies asked the applicants to tick just on the option of smokers or non-smokers filling up a form without much distinction in terms of customization of the product.
A smoker is generally at a high risk as a result premiums would be charged up more than an normal person. The idea is to reward a healthy lifestyle and good habits which would in turn lower the premiums based on smoking habits and family background.
This gives us an idea that you pay less if you are a non-smoker and have a good family history. Such policies are very common in countries which have evolved themselves as life insurance market leaders with people having lesser amount of bad habits are rewarded with low premium.
To determine the effectiveness of a non-smoker person various tests would be done that will check the nicotine level in the body showing whether the person consumes any substance having tobacco in them or not.
