This One Lifestyle Habit Can Make Your Health Insurance Up to 50% Costlier; Here’s How

Smoking and excessive alcohol consumption directly influence and can be measured in the way health insurers in India perceive individual risk, whether it is through the premiums applied or claims outcomes.

Some insurers charge a higher premium on smokers, known as loading, to account for the higher propensity of contracting chronic diseases like cancer, heart disease, and respiratory illnesses. As a matter of fact, smokers end up paying considerably more, sometimes several percentage points more than non-smokers, for the same coverage.

"Matters are more nuanced when it comes to the consumption of alcohol. While rare or moderate consumption will not impact the premium, frequent or heavy drinking usually results in stricter underwriting and higher premiums, with exclusions for alcohol-related illnesses. Most policies also exclude any conditions directly linked to intoxication or substance dependence," says Chetan Vasudeva, Senior Vice President - Business Development at Elephant.in, Alliance Insurance Brokers.

From a compliance perspective, insurers must obtain written disclosure for underwriting loadings and have the same agreed to by the policyholder. However, failure to disclose or misrepresentation on questions related to either smoking or drinking habits remains one of the primary reasons for repudiation in Indian insurance.

"A medical history is scrutinized quite rigorously when an insurer assesses any claims. Failure to divulge such habits would lead to the repudiation or cancellation of policies," Chetan Vasudeva added.

Basically, lifestyle choices such as smoking and heavy drinking not only affect the health of a person but also impact the affordability, transparency, and reliability linked with health insurance coverage. Full disclosure and conscious decisions about health could go a long way in ensuring lower premiums and smoother claim settlements.

Let's be honest—insurers love data, not drama. And when it comes to smoking and drinking, the data screams caution. If you're a smoker, your health insurance premium can shoot up by 25-50%. Why? Because insurers see you as a "high-risk investment."

"Each puff raises your chances of lung, heart, and lifestyle-related diseases, meaning they might have to pay out more—and sooner. It's like trying to insure a car you know is being driven recklessly every weekend. Alcohol, on the other hand, is a little trickier. Occasional social drinking? Usually fine. But regular or heavy drinking (especially if disclosed in your health declaration) can also bump up your premium," commented Vaibhav Kathju, founder of Inka Insurance.

Vaibhav Kathju further says that, more importantly, if a claim arises due to an alcohol-related illness or accident—say liver cirrhosis or a drunk-driving mishap—your insurer might reject or reduce the claim. In short, honesty isn't just noble here; it's profitable. The good news?

Lifestyle changes matter. Quit smoking, cut down on alcohol, and after a few clean years, you can actually request a reassessment of your premium. So the next time you light up or pour another round, remember—your health insurer might be silently updating your "risk profile." And trust me, that's one party guest you don't want keeping tabs on.

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