Impact of smoking on financial health
“An ounce of prevention is worth a pound of cure”. Contemporary society,
however, is a classic example of the reversal of such maxims, a society that
vainglories in cures for self-induced diseases. Smoking does not spare the
environment either and causes air, water and soil pollution due to the release
of toxic pollutants.
Considering the detrimental effects smoking has on one’s physical, emotional
and even financial health, it’s about time that we paid attention
Lifestyle diseases are going to be a bigger problem in the near future as
well a considering the poor air quality in most Indian cities, a protective
health cover becomes important for you and your family’s well being. Don’t get
caught off guard in times of need. Calculate the premium below:
Smoking: The known effects
According to a report by the World Health Organization and the National
Cancer Institute, smoking costs global economies more than $1 trillion per year
and kills about 6 million people!
Effects on financial health
The most ignored aspect of smoking, however, has to do with our financial
health. It may seem like you aren’t spending much when buying a couple of
cigarettes at a time. To get a clearer idea, consider the following situation
–if a cigarette of any of the popular Indian brands costs Rs.15 and a person is
accustomed to smoking a pack of ten in a day, the total amounts to Rs.150 per
day, Rs.4500 per month, and Rs.54,000 per year.
If you decided to invest Rs.54,000 in a fixed deposit account at the rate of
7% for 10 years, you will be able to accumulate a sum of Rs. 1,08,521, given
that the principal amount remains the same (which needn’t be the case). On the
other hand, if you continue to buy cigarettes that are experiencing a steady
price rise of 10% every year, you will end up spending an amount north of Rs.50
lakhs in 30 years!
Diseases like cardiovascular disease, tuberculosis, cancer and respiratory
diseases burns a huge hole in your pocket.
According to Ministry of Health & Family Welfare Government of India, these
diseases cost Rs. 84,382.37 for men and Rs. 17,051.89 for women approximately.
Another way of thinking about how smoking is hurting your pocket is to think
about higher premiums charged by insurance companies. Insurance companies don't
like smokers simply because they are at a higher risk of succumbing to a
disease. A smoker is charged 10-15% higher than a non-smoker for term life
insurance. Lying about smoking is not an option because if the insurer finds out
about the insured's smoking habit, claim settlement will be denied. This may
leave the individual's family staring at a financial crisis. Furthermore,
medical costs see almost a 15% annual inflation. This means that a smoker will
have to spend almost Rs.25 lakhs over a period of 30 years.
The most important thing to remember is that life is too precious to be
sacrificed at the altar of a fleeting whim. Resolve to quit smoking and realize
its health and financial benefits for yourself!