Smokers: Getting Term Life Insurance After Quitting

Former smokers can get life insurance, but they may have to pay higher premiums than non-smokers. This is because smoking is considered a health risk that can reduce life expectancy, and life insurance companies reserve higher rates for those who are not expected to live as long. If you have a smoking-related disease, an insurer may deny your request for a policy. To qualify for non-smoker rates, most life insurance companies require that you refrain from using any tobacco products for at least a year.

What is considered smoking?

The act of smoking involves inhaling and exhaling the fumes of burning plant material. While tobacco is the most common substance smoked, there are other types of substances that are also smoked. These include:

• Marijuana/Cannabis
• Opium
• Crack Cocaine
• Heroin
• Methamphetamine
• PCP
• DMT
• Salvia divinorum
• Cocaine

The most common types of smoking equipment include:

• Cigarettes
• Cigars
• Pipes
• Bidis
• Hookahs/Bongs
• Vapes/E-cigarettes

However, the definition of smoking can vary depending on the life insurance company. For example, some insurers may classify marijuana users as tobacco users, while others may offer non-smoker rates depending on the frequency of use. Similarly, the use of nicotine replacement products, such as gum and patches, may be considered smoking by some insurers, while others may offer non-smoker rates if the use of these products is disclosed on the application.

How do life insurance companies classify smokers?

When you apply for life insurance, you're assigned a health classification based on your insurance risk. Applicants in relatively good health, who don't have risky habits, and don't practice dangerous hobbies usually get a better health classification and more affordable rates than someone who raises some flags. This is because the higher your insurance risk, the greater the chances that you'll die while your policy is active.

Life insurance companies classify applicants into two major groups: smokers and non-smokers. However, there are more specific classifications within these two groups.

Non-smokers

• Super preferred non-smoker: healthy people who haven't used a tobacco or nicotine product within the last three to five years.
• Preferred non-smoker: healthy people who haven't used tobacco or nicotine within the last two years.
• Standard non-smoker: people of average health who don't smoke cigarettes.

Smokers

• Preferred smoker: smokers with one or two well-controlled or resolved minor health conditions and no family history of major medical conditions.
• Standard smoker: smokers who may have well-controlled or resolved moderate health conditions, chronic health conditions, or mental health conditions like mild depression or anxiety.
• Table rating: Table ratings are usually geared toward applicants with more serious health conditions and/or a height-to-weight ratio that falls within the insurance company's guidelines for what is considered overweight. Table ratings can also include smoker or non-smoker rates depending on tobacco use.

Whether or not you're a "smoker" is decided by each life insurance company, and the parameters can vary significantly. For example, some insurers are more flexible about categorizing you as a non-smoker if you only occasionally consume tobacco products, such as a celebratory cigar or pipe every six months.

How long must a former smoker be tobacco-free to be considered a non-smoker?

Life insurance companies consider tobacco use a proven health risk that impacts your life expectancy, and your life expectancy is a major factor when insurance companies set their rates. Smokers can expect to pay nearly four times more for a life insurance policy than non-smokers.

To be considered a non-smoker, you generally need to be tobacco-free for at least a year. However, this varies among insurance companies. Some companies are even stricter and require you to be tobacco-free for two years to get a non-smoker rating.

When you apply for a life insurance policy, you will be asked if you consume tobacco and, if so, what kind and how frequently. Depending on the provider and policy, you might also have to undergo a medical exam, including a urine or blood test, to determine if there is nicotine in your body.

What happens if a former smoker lies about their smoking history?

If a former smoker lies about their smoking history, the consequences can be severe. Lying or misrepresenting oneself on a life insurance application is considered fraud, and if discovered, the insurance company could deny the application, cancel the policy, or refuse to pay the death benefit to loved ones after the policyholder's death.

The first two years after a life insurance policy goes into effect are known as the contestability period, during which the insurance company has the right to review the application materials and medical records again if the insured dies. If the insurer suspects that the policyholder lied or withheld information, it can cancel the policy.

Even after the contestability period, many policies include language that allows insurers to deny the death benefit or cancel the policy over fraudulent statements at any time. In the best-case scenario, the insurance company may delay the payment of the death benefit while they investigate.

The worst-case scenario is that the insurance company declines to pay any death benefit if the death is deemed related to tobacco use. This means that the policyholder's loved ones would be left without the financial protection that the policy was intended to provide.

Additionally, insurance companies have various methods to verify the information provided in the application. They often require a medical exam, including blood and urine tests, which can detect nicotine and cotinine, a byproduct of nicotine. They may also review medical records, pharmaceutical databases, past insurance applications, social media, and even the sound of the applicant's voice to detect signs of smoking or nicotine use.

Therefore, it is crucial to be truthful when applying for life insurance. While smoking may result in higher premiums, lying about it could ultimately put your loved ones at risk of losing their financial protection.

What are the best life insurance companies for former smokers?

Although smoking is known to have negative health effects, former smokers can still get life insurance. However, they often have to pay two to four times more for coverage than non-smokers. The reason for this is that insurance companies consider smoking an increased insurance risk, as it reduces life expectancy.

Some insurance companies are more lenient than others when it comes to classifying former smokers as non-smokers. Here are some of the best life insurance companies for former smokers:

• Legal & General America: Offers some of the most competitive rates for smokers and has long term lengths of up to 40 years. It also allows former smokers to apply for lower premiums after one year of quitting, while some other insurers require two years or more.
• Corebridge Financial: Offers some of the cheapest rates on the market for both male and female smokers.
• Transamerica: One of the oldest and largest life insurance companies, Transamerica offers affordable rates for almost every age and allows smokers in good health to skip the medical exam.
• MassMutual: Offers affordable rates to smokers in good health and has high customer experience ratings.
• John Hancock: Offers incentives for smokers who want to quit, such as the option to request a lower rate after being nicotine-free for at least 12 months.
• Ethos: Offers good rates for smokers in excellent health with no other health issues.
• Mutual of Omaha: Offers guaranteed acceptance whole life coverage for smokers over 45 in poor health.
• Prudential: Accommodating of marijuana smokers, allowing applicants who smoke three times a week or less to qualify for non-smoker rates.

It's important to note that life insurance rates for smokers can vary significantly depending on age, gender, health profile, and other factors. It's always a good idea to shop around and compare quotes from multiple insurers to find the best rate.

Frequently asked questions