Life insurance for smokers
Life insurance is intended to assist you in providing for your loved ones in the event that the unthinkable occurs and you pass away. If you're a smoker looking for life insurance, you should do some additional research. The average smoker rate at a life insurance company is two to three times higher than the average non-smoker rate. Why? Tobacco use is a high-risk activity. Similarly, high-risk drivers pay higher auto insurance premiums.
While smoking makes it more difficult to find a low-cost life insurance policy, finding the right policy for you is still possible. You may want to learn more about the application process, the best types of life insurance for you, and what happens if you quit smoking to make the process go more smoothly.
Applying for life insurance as a smoker
When you apply for life insurance, you will typically be asked if you smoke. Smokers are considered high-risk policyholders by life insurance companies because they are more likely to develop health problems and die at a younger age.
Your life insurance company will most likely require a medical exam to verify your application. This exam is required for most (but not all) life insurance policies. A sample of blood, saliva, or urine may be taken during the medical exam. When analyzed, it can reveal whether you have nicotine or cotinine, a nicotine metabolite, in your system. If this evidence is discovered, you will most likely be classified as a smoker by the company.
Tobacco use, whether from cigarettes, pipe smoking, chewing tobacco, vaping, or cigars, is usually obvious. The blood test should also reveal whether you have THC in your system, which indicates marijuana use. Any of these could indicate that you are a smoker, which would subject you to higher premium rates.
Even if you have recently quit smoking, there may be remnants of nicotine in your body. In general, insurers prefer that you be nicotine-free for at least one year before being considered a non-smoker.
Best types of life insurance for smokers
The best life insurance for smokers will be determined by their specific policy requirements. Even if you smoke, there are several policy types available to you, and while you may pay more than a non-smoker, you should be able to find more than one company willing to write you a policy. A licensed insurance agent can assist you in determining which policy type is best for your specific needs.
- Term life insurance: The simplest and cheapest kind of life insurance, term life insurance lasts for a specific number of years — usually 10, 20 or 30 — and includes a death benefit paid out if you pass away during the policy’s term. There is no other benefit or payback once the term is over. This is typically the least expensive life insurance option for smokers.
- Whole life insurance: A whole life insurance policy provides permanent coverage that remains in effect as long as the premium is paid. Furthermore, a portion of your premium will be placed in a savings vehicle from which you will be able to withdraw once a certain amount has been accumulated. Although whole life insurance can be useful in a comprehensive financial plan, it is unlikely to be the most cost-effective option for a smoker or nonsmoker.
- Guaranteed issue insurance: Guaranteed issue insurance is a type of permanent life insurance policy that does not necessitate a medical exam or health screening. This may be appealing if you are a smoker or have an existing health condition, though coverage limits are usually capped at around $25,000. Your premiums will not be determined by your smoking habits, but rather by your age, gender, and the amount of coverage you desire. The disadvantage of this type of life insurance is that it is typically more expensive than medically underwritten life insurance for a smoker in good health.
What happens if you lie on a life insurance application about smoking?
Lying on a life insurance application is never a good idea. If you falsify information on your life insurance application and your insurer discovers it, your application may be denied. If the lie is discovered after your death, an insurer may withhold the death benefit from your beneficiaries.
Insurers have several options for determining the accuracy of the information on your application. To begin, the life insurance smoker test, which is part of the medical exam, will reveal nicotine use. Your medical records, previous life insurance applications, and even your social media feeds may be scrutinized by your insurer.
How much more does life insurance cost for smokers?
Your life insurance premium is determined by a variety of factors, including your age, gender, and overall health. If you include smoking on the list, your premiums could be two or three times higher than someone who does not smoke.
Why is there an increase? Smokers have a higher risk of dying from cancer. Other illnesses caused by cigarette smoking include gastrointestinal diseases and high blood pressure. To summarize, smoking increases your risk of developing a variety of diseases that can have a negative impact on your health.
What if you quit smoking?
Unless you require immediate coverage, you should wait at least a year after quitting smoking before applying for life insurance. To qualify for lower rates, some insurers require you to be smoke-free for at least that long.
If you have recently retired and need a policy as soon as possible, you may be able to obtain short-term life insurance or a policy that allows you to be re-rated after some time has passed. Check with your insurance agent to see if this is permitted under your policy.