Smokers' Life Insurance: Is It Possible?

Life insurance companies view smoking as a high-risk factor, and smokers can expect to pay higher premiums than non-smokers. This is because insurance companies determine premiums based on risk and life expectancy, and smokers are considered to have a higher risk of premature death.

However, smokers can still get life insurance, and there are several types of policies available to them, including term life insurance, whole life insurance, and guaranteed issue insurance. The cost of life insurance for smokers varies depending on the company and the individual's circumstances, but it is generally much more expensive than for non-smokers.

If a smoker quits, they may be able to get a better rate after a year or two, depending on the insurer. It is important to be honest on a life insurance application, as lying about smoking could result in the policy being denied or the claim being rejected.

How much more do smokers pay for life insurance?

Smokers can get life insurance but they will have to pay higher rates than non-smokers. This is because tobacco use is a proven health risk and impacts life expectancy, which is a major cost factor for insurance companies when setting their rates.

The cost of life insurance for smokers varies depending on age, gender, and coverage amount. Forbes Advisor's analysis found that a smoker can pay about four times as much as a non-smoker for life insurance. For example, a healthy 40-year-old male smoker would pay $1,531 per year for a 20-year, $500,000 term life insurance policy, whereas a non-smoker would pay $397 per year for the same coverage.

NerdWallet's analysis found similar results, with a 40-year-old male smoker paying more than four times what a 40-year-old non-smoker would pay for a $500,000, 20-year term life policy. According to their data, the average annual rate for a non-smoker is $450, while the average annual rate for a smoker is $1,870.

The difference in costs can be significant, with smokers paying anywhere from 30% to 300% more in monthly life insurance premiums. The older a person gets, the greater the premiums will be as a smoker. While the difference starts small, the premiums double and continue to increase as the person gets older.

It is important to note that the definition of "smoker" can vary between insurance companies. Most companies consider a person a smoker if they have smoked within the last 12 months, but this can include cigarettes, cigars, e-cigarettes, vaping, and other tobacco and nicotine products. Some companies may also consider marijuana use as smoking, depending on the frequency and method of consumption.

Life insurance companies have various methods to verify an applicant's smoking status, including medical exams, blood and urine samples, medical records, prescription records, and social media. Lying about smoking on a life insurance application is considered insurance fraud and can result in the denial of a claim.

What qualifies someone as a smoker on a life insurance application?

Most insurers will classify someone as a smoker if they have smoked cigarettes in the past 12 months. However, the definition of a "smoker" can vary from company to company. Some insurers may also classify those who use other nicotine products, such as vaping devices, e-cigarettes, nicotine gum and patches, and heated tobacco products, as smokers. Marijuana users may also be considered smokers, depending on the frequency of their usage.

Occasional cigar smokers may be able to obtain non-smoker rates with some insurers, while others will classify infrequent cigar smokers in the same category as regular cigarette smokers. It is important to note that, even if you do not smoke cigarettes, using other tobacco or nicotine products can still result in higher life insurance premiums.

When applying for life insurance, it is crucial to be truthful about your smoking habits. Lying on your application can be considered insurance fraud and may result in the insurance company denying your claim.

Does vaping or cannabis affect your life insurance?

Vaping and cannabis use can affect your life insurance, with insurers typically treating vapers the same as smokers, and cannabis users facing higher premiums depending on the frequency and method of consumption.

Vaping and Life Insurance

Vaping will not prevent you from getting life insurance, but insurers will consider you a smoker, and your premiums will be two to three times higher than non-smokers. This is because there is limited research on the long-term health effects of vaping, and so insurers consider vapers riskier to insure. To get non-smoker rates, you will need to quit vaping for at least 12 months, and sometimes up to two or three years, before applying for life insurance.

Cannabis and Life Insurance

You can get life insurance if you use cannabis, but your rates will be higher, especially if you use it frequently. Insurers will also consider whether you smoke or ingest cannabis, and whether it is for recreational or medical purposes. If you have a medical marijuana card, insurers will focus on the underlying health condition rather than the cannabis use itself.

When applying for life insurance, it is important to be honest about your cannabis use. Lying on your application could result in denial or cancellation of coverage, or the insurance company refusing to pay the death benefit to your beneficiaries.

What happens to your life insurance premium if you quit smoking?

If you're a smoker, you can still get life insurance, but you'll likely pay a much higher premium than non-smokers. This is because smoking impacts your life expectancy, and life insurance companies set their rates based on life expectancy.

However, if you quit smoking, you may be able to get a better rate on your life insurance premium. Here's what you need to know:

Generally, if you haven't smoked for 12 months or more, you're considered a non-smoker for life insurance purposes. However, the specific timeframe varies among insurance companies. Some companies may require you to be tobacco-free for up to three to five years to qualify for their preferred rates.

If you already have a life insurance policy and you quit smoking, you may be able to get a better rate. Contact your life insurance company to ask how long you need to quit smoking to be considered for a lower rate. After you've passed that time threshold, you can request a rate reconsideration, which typically involves taking a new medical exam and having your health re-evaluated.

Should I wait to apply for life insurance if I plan to quit smoking?

It's generally not advisable to delay applying for life insurance, even if you'll pay higher premiums as a smoker. Premiums on new policies typically increase with age, and if you develop health issues while trying to quit smoking, finding affordable coverage could become more difficult.

Once you buy a life insurance policy, the company cannot raise your rates if you start smoking. However, if you lie about your smoking status on your life insurance application and the insurance company discovers this, they could refuse to pay the policy's death benefit to your loved ones.

What happens if you lie on a life insurance application about smoking?

Lying on a life insurance application is considered insurance fraud, and the consequences can be dire. While it may be tempting to misrepresent your smoking status to secure a better rate, doing so could result in serious financial and legal repercussions. Here's what you need to know about the potential fallout from lying about smoking on your life insurance application.

Policy Cancellation and Claim Denial:

If the insurance company discovers your dishonesty during the application process or within the contestability period (usually the first two years of the policy), they may cancel your policy or deny claims. This means that your loved ones could be left without the financial protection they need when they need it most.

Financial Hardship for Beneficiaries:

If you pass away during the contestability period and it is revealed that you were a smoker but lied about it on your application, the insurance company may decrease the death benefit or deny the claim altogether. As a result, your beneficiaries may face financial hardship due to reduced or nonexistent payouts.

Legal Consequences:

Insurance fraud is a serious offence that can result in legal penalties. Intentionally misrepresenting yourself on a life insurance application could lead to fines or other legal repercussions.

Increased Premiums:

Even if your policy is not cancelled, the insurance company may adjust your premiums once they learn the truth about your smoking status. They may classify you as a smoker, resulting in higher premiums to reflect the increased risk.

Complications and Delays in Claim Payouts:

Even after the contestability period has passed, discovering your dishonesty about smoking could still cause complications and delays in claim payouts. This could create additional stress and financial burden for your loved ones during an already difficult time.

In conclusion, while smokers may face higher premiums, being truthful about your smoking status on a life insurance application is crucial. Honesty ensures that your policy remains valid and that your loved ones receive the full protection they deserve when they need it most. The potential consequences of lying far outweigh any short-term savings on premiums.

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