Insurance Blog


We all know the non-financial effects of smoking.

Your family suffers. Your career prospects might be limited. Risk of shortened life. Poor health.  Etc, etc.

Well the gory, statutory warnings at the beginning of every movie are hideous enough to make us lose appetite of our cheese popcorn and chilled coke.

But what if we told you, based on a simple mathematical calculation, that the cigarettes are standing on your way to becoming a Crorepati?   

Here’s a tiny presentation on the financial effects of smoking, at the end of which we hope you’d acknowledge the fact that addictions can be truly expensive.


 In order to make the calculation easier, we’re going to assume the following.

1.       We’ve rounded up the varying cost of a cigarette (that ranges from 10-15 INR) to 12 INR.

2.       We’ve assumed that our subject starts smoking from the age of 30.

3.       The number of cigarettes smoked – 5 per day.

4.       Gender Neutral Assumptions.

5.       Subject is assumed to be from an urban/semi urban background.

And, now – on to the Math.


This is perhaps the chunkiest part of the calculation. Assuming that the average cost of a cigarette is 12 INR, and the smoker smokes 5 cigarettes a day – that adds up to 1800 INR a month. Now over a period of 30 years, assuming that the cost of tobacco products increase at 8% per annum – your expenses are almost 24.47 Lakh INR. 

Now, here comes the most interesting part. Assuming you invested this amount, at 9% - you have accumulated a wealth of 69. 23 Lakh INR.

Keep this amount aside for now, as we plunge into other details.


Hey, we don’t want to get all preachy but you already know enough that smoking will add on to your hospital bill.

Assuming the effect of your addiction is reflected in the form of 400 INR every month in your health expenses, this amount adds up to 11.59 Lakh INR at 12% yearly increase in the cost of healthcare services.

This amount, invested at 9%, might have brought in a lumpsome 26.7 Lakh INR that you simply puffed your way off.


Yes!! It is true!!

Life Insurance Companies charge smokers with extra premium.

As a 30 year old, you might be paying 460 INR higher in premium every month (for a cover of 1 crore).

This amounts to 1.65 Lakhs in 30 years, which invested at 9% might have fetched you 7.52 Lakhs by the time you’re 60.


So you’re probably rolling your eyes at all the math, and trust me –I’m a person who not-so-good with numbers myself, but adding up these expenses surely blew my mind.   

69.23 + 26.7 + 7.52 = 1.03 CRORE RUPEES

Funny, how 5 cigarettes a day is keeping you from becoming a Crorepati, isn’t it?


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