ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -But you should know that you will have high life insurance quotes if you’re a smoker. As it’s obvious that smoking rates will easily be double or triple compared to a non-smoking rate. The spike will vary by your age, gender and the coverage amount.

Detailed explanation-2: -The risk of life is a key deciding factor while calculating the premium of term insurance. Because of lower life expectancy, smokers pay a higher premium charge than non-smokers.

Detailed explanation-3: -Smokers are more likely to have ongoing health problems and a shorter lifespan than non-smokers, making them more of an insurance risk. As a result, life insurance for smokers comes with higher premiums.

Detailed explanation-4: -“Smoking is a health hazard that increases the risk of ailments. This, in turn, increases the mortality risk for smokers. Thus, smokers are charged a higher premium because they have a higher mortality risk compared to non-smokers.

Detailed explanation-5: -As smokers can suffer from many different types of serious illnesses such as cancer, heart problems, and bronchitis which could also result in death, insurers make up for this high insurance risk by charging a higher premium.