Lung cancer, heart disease, liver cirrhosis, high blood pressure, kidney problems.
Since the cost of treating these diseases is very high, the company expects that a smoker or a drinker will file a higher claim sooner. To compensate for this increased risk, the company charges you a high premium. A smoker’s premium can be 15-20% higher than that of a non-smoker.
The company charges you a high premium only to compensate for the increased risk.
What is the impact on the claim?
According to the report of ET Wealth, it is not just the increase in premium that is a problem, the real problem comes when you have to be admitted to the hospital and file a claim for treatment.
What if I just do social drinking occasionally?
This is a very common question. Insurance companies generally fall into two categories:
Golden Rule: While filling the online form, if ‘Do you smoke/drink?’ If a yes/no question is asked, always give the truthful answer. Taking shortcuts by saying ‘no’ can create huge problems in the future.
Some policies clearly state that treatment of alcohol or cigarette related diseases (such as liver cirrhosis) will not be covered.
Why is this information important for a common user?
1. Question of financial security: Health insurance is a financial security cover in case of medical emergency. By giving wrong information you lose this shield. Treatment of a major illness can cost lakhs of rupees, which can wipe out the savings of a middle class family.
2. Long term investment: Health insurance is a long term investment. A small mistake of lying today can leave you without cover 10-15 years later, when you need it most.
3. Warning for youth: People at young age feel safe on the health front and do not take the rules of insurance seriously. But this is the age when good cover can be availed at low premium. By giving correct information, you can not only keep your premium low but also create a secure channel for the future.
What should we do?
