Factors Affecting Insurance Premium

Smokers end up paying `5000 more than non-smokers as a premium every year

- Nirmala Konjengbam

Did you know losing weight, quitting cigarettes or alcohol have more than just health benefits? If you are planning to buy health or life insurance, these factors can help you to reduce your premium amount.

Buying or selling an insurance policy is based on the basic principle of ‘utmost good faith’ between the insurer and the client. And for this, the client needs to make relevant declarations at the time of buying the policy. Hiding a few facts may help you buy a policy where you need to pay lesser premium but “the insurance company won’t pay the claim if there’s lack of appropriate declaration and misinformation to reduce the premium amount from the proposer’s side, a company won’t be able to price that risk accordingly,” said Bhaskar Nerurkar, Head, Health Administration Team, Bajaj Allianz General. So, nondeclaration may have an impact on the claim if the doctor can relate the ailment to be caused by something like smoking or drinking.

Some of the severe diseases caused by smoking are lung cancer, chronic obstructive pulmonary disease, heart disease, asthma, stroke, diabetes, secondary cancer, reproductive effects in women, premature and low birth weight babies. Health risks linked to heavy alcohol consumption include liver disease, pancreatitis, immune system dysfunction, ulcers and gastrointestinal problems, brain damage, malnourishment and vitamin deficiencies, osteoporosis, cancer, stroke and cardiovascular disease.