Complete Guide to Life Insurance Plans for Smokers in UAE

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  | Published: 08 September 2021

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Life is full of uncertainties and being prepared in advance is always a better choice. For a responsible individual, safeguarding self and the dependent family members is of sole importance. Considering this, several insurance companies in the UAE offer life insurance plans providing financial assistance to the beneficiaries. The life insurance plan provides death benefits to the insured’s family members in case of his/her untimely demise. Acquiring a life insurance plan in the UAE is simple; you need to pay a monthly or yearly premium and the issuer provides financial security to the policyholder. While calculating the premium, the insurance company speculates the risks you possess due to your lifestyle habits. The premium cost of the life insurance plans for smokers shoots up for the fact that they are a bigger risk to the insurance company. 

Among the list of life-threatening habits, smoking ranks on the top. An insurance company may ask you about your lifestyle habits before disclosing your premium. They need to know your susceptibility towards lungs and heart disease due to smoking. As the data reveals, smokers are far more likely to claim for critical illnesses induced by smoking. 

Health Risks Associated with Smoking

Smoking causes numerous lung issues but the list doesn’t end here. In various studies, smoking is related to various heart diseases apart from lung and throat cancers. Additionally, it is responsible for a host of chronic health issues such as COPD (chronic obstructive pulmonary disease). It is for this fact that the insurance company charges a higher premium if the policyholder has a smoking or tobacco consumption habit in general.

Who is a Smoker According to Insurance Companies in UAE?

The insurance company considers a casual smoker equivalent to a chain smoker. Whether you consume a packet of cigarettes daily or once a week, you remain a smoker and the premium will be charged accordingly. Since you are more likely to acquire a critical illness due to tobacco consumption, the insurance underwriters prepare the quotes considering the risk you carry for them. However, if individuals apply for an insurance plan 12 months after quitting smoking, the insurance company considers them as non-smokers and quotes the premium as that of a non-smoker. 

Taking this fact into account, a smoker can easily bring his insurance premium and health risk down by quitting smoking.

How does Smoking Impacts the Life Insurance Premium in UAE? 

The company calculates life insurance premiums considering the risk to life and health. Researches have shown that smoking has both long and short-term health issues and increases susceptibility to critical illnesses. If the life insurance you are going for covers critical illnesses, your insurance company will charge you a higher premium. They may also consider your smoking pattern and frequency to calculate the premium. If you decide to quit smoking, the company may go light on insurance premiums or even reconsider your insurance plan. Additionally, they may go through your medical records to check whether or not you had strokes or any smoking-induced illnesses in the past and decide the premium rates accordingly. 

Generally, a smoker pays 40-50% additional sum than a non-smoker; however, the premiums can soar as much as 200% for the smoking counterpart. Your smoking habit is relevant to the insurer and they charge a premium according to your susceptibility and past health records. Although non-smokers have an upper hand with respect to the life insurance premium, you can still find a life insurance plan for smokers in UAE suitable to your budget by doing research or visiting a reputable insurance provider.  

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Do You Need to Disclose Your Smoking Habit to the Insurance Provider?

Even if you consume cigarettes or any tobacco products occasionally, it is important to inform the insurer. As an occasional smoker, you are still a risk to the insurer and they will quote the life insurance premium accordingly. They may offer you a concession for occasional consumption at their discretion. Even e-cigarette consumers need to disclose their habits since the health issues related to e-cigarette consumption are not widely known. The insurance provider will still consider you as a smoker, impacting your life insurance premium.

Choosing not to disclose your smoking habit to save a few bucks can render your life insurance invalid if, at any stage, the company finds out any health issue induced due to smoking. In such cases, the insurance company may reject your insurance claim including death benefits. The insurance provider makes a complete study of your medical reports before settling your claim. You may not inform them about your smoking habit, but they have multiple ways to find out. Also, getting your insurance void will not help your beneficiaries, adding to their problems during untimely events. 

Hence, it is better not to lie about your lifestyle habits to the insurance provider, or else you will end up without any life insurance cover and your purpose for life security will not be fulfilled. 

Do Insurance Providers Ask for Prior Medical Check-ups Before Offering Life Insurance to Smokers?

To maintain transparency, the provider may ask for a prior medical check-up before offering a life insurance plan to smokers. You may need to take a urine or a saliva test to prove yourself a non-smoker. The company may also look for your medical history for additional verification. Once satisfied, they will quote your life insurance premium as per their norms. In case your tests show nicotine consumption, the insurance provider will quote you according to the terms and conditions of the life insurance plan for smokers and will consequently increase your premium cost. 

If you lied about your smoking habit while purchasing your life insurance, the company may mark you as a fraud. In such cases, they won’t pay you any benefits in case you die of critical illnesses induced due to smoking.

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How Can You Bring Down the Premium Cost of Life Insurance Plan for Smokers?

Nicotine addiction is one of the strongest temptations. Smokers are bound to pay higher life insurance premiums due to related health issues and risks to the insurance companies. However, they can bring down the premium cost by quitting their habit and informing about the same to their insurance provider. If you turn out to be nicotine-free as per the insurance company’s norms, your life insurance premium cost will come down. However, you need to adhere to the rules of the insurance company of not smoking for at least 12 months before they take the required steps to reassess your life insurance plan. 

Conclusion

Although the life insurance plans for smokers come with a higher premium cost, the prices are still affordable. Not disclosing your smoking habits can bring devastating consequences to your beneficiaries during an unforeseen event. It is better to disclose all your lifestyle habits that can affect your claim settlement and be transparent. This way, the insurance providers can serve you better and provide you with the security you need for yourself and your loved ones.