As vaping becomes popular among Gen Z consumers in India, many mistakenly believe it is a safer alternative to traditional smoking. However, insurance companies classify vaping and e-cigarettes alongside conventional smoking, which can lead to significantly higher premiums for users. Insurers are primarily concerned with nicotine exposure and its associated health risks, treating anyone who has consumed nicotine in the past year as a smoker. This classification can result in premium increases of 10% to 60% compared to non-smokers. Insurers like Bajaj General Insurance and ICICI Lombard emphasize that there is no safe threshold for nicotine consumption, and even occasional use can carry health risks. Applicants are required to disclose their nicotine habits accurately during the insurance application process, as incorrect information can lead to complications later. Notably, individuals with low cotinine levels, a by-product of nicotine metabolism, may contest their classification as smokers, potentially lowering their premiums. Understanding how insurers assess vaping and smoking habits is crucial for consumers seeking health or life insurance.