Cigarettes Costing more Insurance: A cigarette at a wedding or a quick vape on a weekend may feel small. But for insurance companies, even that can matter a lot. Moneycontrol reported on June 4, 2026 that people who smoke only now and then can still be charged 30% to 50% more than non-smokers. Insurers do not always draw a sharp line between a daily smoker and a social smoker.
Most insurers count someone as a smoker if they have used cigarettes, cigars, chewing tobacco, vaping products, or other nicotine products in the last 12 months. So a person who says, “I only smoke at parties,” may still fall into the smoker group when the policy is checked. G Srinivasan, MD and CEO of Galaxy Health Insurance, said, “Even occasional or social smoking is relevant. It is best advised that complete disclosure of the information is made,”
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Full Truth
Insurance is built on trust. Companies ask questions about smoking, drinking, health history, medicines, and family illnesses before they fix the premium. The big point is not how someone labels themselves. The big point is whether they answered the form honestly. Srinivasan also said, “Insurers always focus on a complete understanding of the risks they underwrite so that proper claim settlement can be done [at any point in time],”
There is also no single rule used by all insurers. Different companies may use different forms and different questions. That is why applicants are told to read the proposal form carefully and answer everything clearly. For people who quit smoking, lower premium rates do not usually come right away. Moneycontrol said insurers generally want someone to be tobacco-free for 12 to 24 months before treating them as a non-smoker. Insurers can also test for cotinine, which is a substance left behind when the body breaks down nicotine.
Drinking also gets Checked
Smoking is not the only habit insurers look at. The Economic Times reported on November 10, 2025 that alcohol use is also checked during underwriting for life and health insurance. Amit Chhabra, Chief Business Officer at Policybazaar.com, said, “They enquire about consumption levels. Even if it’s three drinks a day, the policy may be issued, but disclosure is essential,”
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If a person hides smoking or drinking and later makes a claim, things can get messy. Adarsh Agarwal, Appointed Actuary at Digit General Insurance, said, “If an investigation reveals that the customer had failed to disclose alcohol or tobacco consumption habit, it could be treated as non-disclosure of a material fact, potentially leading to claim rejection or even policy cancellation,”
The risk does not always depend only on the habit itself. Insurers also look at the illness and whether it is linked to smoking or alcohol. For that reason, being open in the proposal form matters a lot. A small detail today can become a big problem later during claim time.
