As May 31st approaches, World No Tobacco Day reminds us of the ongoing harm tobacco causes, not just to our health, but to our finances too. In 2025, the World Health Organisation's theme, "Unmasking the Appeal," aims to bust common myths around tobacco use.
While the health risks of smoking are well known and popularly discussed, many people overlook how it affects their financial planning. At Canara HSBC Life Insurance, we help you identify and address these hidden gaps. This World No Tobacco Day, let’s take a closer look at the picture and understand how insurance premiums for smokers are impacted, adding to the hidden cost.
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Key Takeaways
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Every cigarette you smoke or tobacco you use today shapes tomorrow’s statistics. Globally, tobacco still claims over 8 million lives each year. Unfortunately, another 1.3 million suffer the same due to exposure to second‑hand smoke.
According to reports, youth above 15 years of age account for an estimated 253 million tobacco consumers. While this is quite an alarming number, the overall reports issued by WHO hint toward a gradual decline.
Counting healthcare costs and lost work, India's economy suffered a ₹1,773.4 billion setback in 2017-18. Even as overall smoking prevalence dips, the introduction of flavoured e‑cigarettes has reversed youth gains. The Global Youth Tobacco Survey-4, done in 2019, suggests that 2.8% of adolescents consume e-cigarettes.
These numbers underscore the urgency of “Unmasking the Appeal” and explain why insurers factor tobacco use into premium calculations.
A UN report shows that tobacco use in India is projected to fall 43% (38.3% to 21.8%).
Source: TOI
Since the first World No Tobacco Day, its themes have evolved from a simple act of spreading awareness to a complex global movement. Here’s how each milestone in its history reflects shifts in policy, science, and public awareness:
Understanding the correlation between tobacco use and insurance is essential for anyone who smokes or uses other tobacco-based products. Of course, quitting remains the best path to improved health and lower costs. However, knowledge of how, as an insurance buyer, assessing your tobacco habits can help you select or renew a suitable policy.
Here, we unpack the three key dimensions that every tobacco user should know:
While offering coverage is beneficial for the policyholder’s loved ones, in the case of tobacco users, insurers still prefer a close assessment of all areas. Their goal is to balance risk pools and ensure that premiums accurately reflect expected claim costs. Their key strategies include:
Canara HSBC Life Insurance offers online term insurance plans to secure your family financially in your absence.
For policyholders, ceasing tobacco use unlocks both immediate and long‑term advantages. Beyond obvious health improvements, quitting reshapes insurance premiums for smokers and tobacco users in ways that compound over time:
The following table highlights the principal distinctions between standard non‑smoker policies and those specific for tobacco users:
| Criteria | Non‑Smoker Policy | Smoker Policy |
|---|---|---|
| Base Premium | Lowest risk class; standard age‑band rate. | Charged a loading of 25 – 100 per cent. |
| Underwriting Requirements | Basic health questionnaire. | Detailed smoking history and biochemical tests. |
| Policy Eligibility | Broad access to all term and whole life plans. | May be restricted to specific products. |
| Riders and Add‑ons | Full suite of critical illness, waiver of premium, and accidental death. | Limited rider availability; higher cost. |
| Renewal Terms | Premium stability and possible loyalty bonuses. | Higher renewal rates and fewer loyalty benefits. |
| Conversion Rights | Often extendable to permanent plans without further medicals. | Conversion usually requires fresh medicals. |
| Reclassification Opportunity | Not applicable. | Possible after 12–24 months of abstinence. |
Even a marginal difference in risk translates into significant financial divergence. For example, a 30‑year‑old non‑smoker purchasing a ₹1 crore, 20‑year term plan might pay ₹10,000 annually.
Conversely, a smoker in the same bracket could face premiums upward of ₹18,000. Should that smoker quit and validate their abstinence, they can petition to reclassify, potentially restoring the ₹10,000 rate. This demonstrates the dual value of better health habits: life‑extending and cost‑saving.
Setting the foot in the right direction always takes courage. You may undergo physical and psychological withdrawal symptoms. However, you can embrace your journey to a healthier and wealthier life with these pragmatic steps:
As someone who understands the long-term costs of tobacco, both to health and to finances, quitting is a personal win and a smart financial move. At Canara HSBC Life Insurance, we are committed to supporting your healthier lifestyle choices with top coverage plans.
Whether you're rethinking your premiums or looking for plans tailored to your current health, we're here to guide you every step of the way. Let’s make this World No Tobacco Day 2025 a milestone towards a smoke-free life and a stronger, more secure financial future.
Concealing tobacco use can lead to claim rejection due to non-disclosure or misrepresentation during the application.
No, most insurers treat all forms of tobacco, smoking, or smokeless as part of the same risk category.
It may, depending on your policy’s terms. Some insurers offer lower premiums upon verified tobacco abstinence.
Tobacco users may face restricted access, higher premiums, or longer waiting periods in critical illness plans.
Yes, it may reduce health complications and hence improve both claim acceptance and settlement timelines.
Some insurers partner with wellness platforms or offer rewards for participation in cessation initiatives.
Yes, most insurers consider e-cigarettes and vaping as tobacco use for risk assessment.
Disclose truthfully, maintain good health, quit tobacco, and request re-evaluation after consistent abstinence.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
