Smokers' Life Insurance: Is It Possible?

Life insurance is more expensive for smokers than non-smokers, but it is still possible to get insured. Smokers are considered high-risk policyholders because they are more likely to develop health issues and pass away at a younger age. This means that insurance companies will pass the higher risk of insuring smokers off to the policyholders in the form of higher premiums. However, the definition of a smoker varies among insurance companies, and some may be more lenient towards smokers than others.

Smokers can get life insurance but will pay higher rates

Yes, smokers can get life insurance, but they will pay higher rates 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 expected to live shorter lives.

Life insurance rates for smokers can be double or triple the rates for non-smokers. 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 policy.

Smokers can take out different types of life insurance policies, including term life insurance and whole life insurance. Term life insurance offers coverage for a set period, typically between 10 and 30 years, while whole life insurance is a permanent policy that provides coverage for the entirety of the policyholder's life.

When applying for life insurance, it is important to be truthful about your smoking habits. Lying on the application could result in being denied coverage or having the policy revoked in the future. Most life insurance policies require a medical exam that includes blood, saliva, and urine tests, which can reveal the presence of nicotine or cotinine, a byproduct of nicotine, in the system.

In addition to the medical exam, insurers may also review medical records, pharmaceutical databases, past insurance applications, and social media to verify the information provided on the application.

It is worth noting that individuals who have recently quit smoking may still be classified as smokers and face higher rates due to the continued risk of smoking-related diseases. However, if someone stopped smoking at least a year ago, they may qualify for non-smoker rates.

Smoking impacts life expectancy, a major cost factor for insurers

Smoking is a well-known health hazard, causing a wide range of diseases and reducing life expectancy. Research has shown that smokers can expect to live about 10 years fewer than non-smokers. The effects of smoking on life expectancy are particularly pronounced in middle age, with half of those who die from smoking-related causes losing about 25 years of their lives. The number of life-years lost due to smoking increases with the number of cigarettes smoked, with each cigarette smoked by a man reducing his life by 11 minutes.

The impact of smoking on life expectancy is a crucial factor in life insurance rates. Life insurance companies reserve higher rates for those with shorter life expectancies, and smoking is considered a significant health risk that reduces life expectancy. As a result, smokers typically pay double or triple the rates of non-smokers for life insurance. The increased rates for smokers are due to the higher risk of health conditions and premature death associated with smoking.

In addition to higher rates, smokers may also face additional challenges when applying for life insurance. Some life insurance companies require medical exams that include blood, saliva, and urine tests to detect nicotine use. Lying about smoking status on a life insurance application can result in denial of coverage or future cancellation of the policy if the truth is discovered. Therefore, it is essential for smokers to be truthful about their smoking habits when applying for life insurance.

While smoking does impact life expectancy and life insurance rates, it is important to note that smokers can still qualify for life insurance. There are life insurance options specifically designed for smokers, such as term life insurance, whole life insurance, final expense insurance, and guaranteed-issue life insurance. Additionally, smokers can take steps to reduce their insurance costs by quitting smoking and informing their insurance company.

Smokers can be denied insurance if they have smoking-related diseases

Smoking is the leading cause of preventable disease, disability and death in the U.S. It accounts for 480,000 deaths (or 1 in 5 deaths) per year. As a result, smokers are considered high-risk policyholders by insurance companies since they are more likely to develop health issues and pass away at a younger age.

If you are a smoker, you can still qualify for many life insurance plans, but you should expect higher premiums than a non-smoker. This is because smoking is considered a health risk that can reduce your life expectancy, and life insurance companies reserve higher rates for those that aren't expected to live as long.

If you have a smoking-related disease, an insurer may choose to deny your request for a policy. Smoking increases the risk of many health conditions, and some of those could be life-threatening. These include cancer, heart disease, stroke, diabetes, and chronic obstructive pulmonary disease.

When you fill out a life insurance policy application, you will be asked whether you smoke. Depending on the provider and policy, you might also have to undergo a medical exam. During the exam, a health care professional will likely take a sample of blood, saliva, and urine to determine if there is nicotine in your body and whether you smoke.

While it might be tempting to state you don't smoke or refuse the sample test, doing so can do more harm than good. If an insurance company finds out that you lied on your application and are a smoker, they may deny you coverage altogether.

Lying about smoking on an application may result in denied coverage

Lying about smoking on a life insurance application may seem like a way to save money on premiums, but it can have serious repercussions. While it might be tempting to state that you don't smoke or refuse a sample test, doing so can do more harm than good. If an insurance company finds out that you lied on your application and are a smoker, they may deny you coverage altogether.

Insurance companies have multiple ways to verify your smoking status, so it is difficult to hide your smoking habit. They can verify your smoking status through medical exams, reviewing medical records, checking third-party databases, and more. If they discover your dishonesty, either during the application process or within the contestability period, they can cancel your policy or deny claims, leaving your loved ones without the financial protection they need. Even after the contestability period, if the truth comes out, it could still cause complications and delays in claim payouts.

Lying about smoking can lead to serious consequences, such as policy cancellation and denied claims during the contestability period. Additionally, your beneficiaries may face potential financial hardship if the insurance company refuses to pay the death benefit from your policy. Beyond the financial risks, lying on a life insurance application can also lead to legal consequences, as insurance fraud is a serious offence.

Being upfront about your smoking status is the best approach when applying for life insurance. While smokers may face higher premiums, being truthful ensures that your policy remains valid and your loved ones are fully protected. Honesty ensures that your policy is honoured when your family needs it the most.

To get non-smoker rates, individuals typically must be nicotine-free for a year

Life insurance companies determine premiums based on risk, and the healthier a person is, the cheaper life insurance will generally be. As smoking is considered a health risk, smokers will usually have to pay higher rates than non-smokers. However, individuals who have quit smoking can still get non-smoker rates if they are nicotine-free for a year.

To be considered a non-smoker for life insurance, you'll typically need to be nicotine-free for at least a year. This is because nicotine can remain in your system for up to 12 months, depending on the test and frequency of use. For example, nicotine can be detected in blood tests for one to three days, in urine tests for three to four days, in saliva tests for up to four days, and in hair tests for one to three months. In some cases, nicotine can be detected for up to 12 months.

If you already have a life insurance policy and you've quit smoking, you can ask your provider to reconsider your rate once you believe you will test negative for nicotine. Again, 12 months is typically the minimum time insurers prefer you to be tobacco-free. At this point, your provider will likely require you to take another medical exam. You also have the option to search for a different provider and start fresh with a new non-smoker life insurance policy. However, it's important not to cancel your current policy until a new one is 100% active.

If you are a smoker considering getting life insurance, it's a good idea to shop around and get multiple quotes, as every life insurance company has a different underwriting process and formula for evaluating smokers.

Frequently asked questions