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Kept your habits a secret? This constitutes to fraud!!

It is a known fact that smokers/ drinkers pay higher life insurance premiums. These will negatively impact your health and thus increase mortality risk. Insurance companies protect themselves from this higher risk by increasing premiums by 10-15 percent for smokers and drinkers.

However, when it comes to health insurance, insurance companies do not charge higher premium for smokers/ drinkers as of now. But things might change in the future and they might charge smokers/ drinkers higher premiums.

Both life and health insurance proposal forms ask whether you are a smoker/ drinker. If you fail to disclose your smoking/ drinking habits to your insurance company it constitutes to fraud, and could result in your claim being denied.

If you were a smoker in the past and even if you are not a smoker at present and have not smoked for many years, it’s better to mention that in your form.

Sometimes the insurance agents themselves would tell the consumer not to mention about smoking/ drinking habits. It is best to get rid of such agents and ensure you say the truth. Never lie about anything in your insurance forms because when the time for claim arises, you don’t want your family to suffer.