Chewing Tobacco: Life Insurance Premiums And Health Risks

Chewing tobacco is linked to a range of serious health issues, including oral cancer and heart disease, and is therefore considered a high-risk behaviour by insurance companies. This means that, yes, it can affect your life insurance rates. While some insurance companies will classify chew users as smokers, others will be more lenient. However, even if you are offered non-smoker rates, you will probably still pay more for life insurance if you chew tobacco.

Chewing tobacco and health risks

Chewing tobacco is linked to a host of serious health issues, which is why it can impact life insurance rates. While it may be perceived as a safer alternative to smoking, smokeless tobacco still carries significant health risks.

Firstly, chewing tobacco is directly linked to a range of life-shortening health effects. It is associated with oral cancers, including cancers of the mouth, tongue, cheek, and gums. Users are exposed to more than 25 known cancer-causing chemicals, including tobacco-specific nitrosamines (TSNAs). The higher the level of TSNAs in a product, the greater the cancer risk. Chewing tobacco has also been linked to oesophageal cancer and pancreatic cancer.

In addition to the increased risk of cancer, chewing tobacco can cause oral health issues such as gum disease, tooth decay, and tooth loss. It can irritate or destroy gum tissue, leading to gum recession, swelling, and tooth abrasion. The high sugar content in tobacco can contribute to tooth decay and cavities. Users may also develop leukoplakia, which is a grey-white patch in the mouth that can become cancerous.

Chewing tobacco use also poses risks during pregnancy, increasing the likelihood of early delivery and stillbirth. It can also lead to nicotine poisoning and even death in children who mistake it for candy. The nicotine in smokeless tobacco is highly addictive and can harm brain development in teens, impacting attention, learning, mood, and impulse control.

While some newer smokeless tobacco products may expose users to lower levels of harmful chemicals compared to cigarette smoke, this does not make them safe. All forms of smokeless tobacco contain cancer-causing chemicals and addictive nicotine. Therefore, chewing tobacco poses serious health risks that can impact life expectancy and, consequently, life insurance rates.

How life insurance rates are determined

Life insurance companies assess every applicant based on their life expectancy. The healthier a person is, the cheaper their life insurance will generally be. As tobacco use is associated with various health risks, including cancer, heart disease, and respiratory problems, it is considered a high-risk behaviour by insurance companies.

When you apply for life insurance, an underwriter will categorise you into a risk class based on various factors, such as your health and lifestyle. Risk classes are divided into two different categories: non-tobacco and tobacco. Being in the tobacco category means you will face higher premium rates. However, it is important to note that life insurance companies don't all assess risk in the same way. Some companies will categorise chewing tobacco users as tobacco users, while others are more lenient.

The frequency of tobacco use also plays a role in determining life insurance rates. Whether tobacco users prefer smoking or smokeless products, the possibility of receiving non-smoker rates depends on how often a person consumes tobacco. For example, a person who uses chewing tobacco every day will likely be charged significantly more than someone who indulges once or twice a month.

In addition to the frequency of use, the type of tobacco product can also impact life insurance rates. For example, cigar smokers may be cut some slack by insurance providers, but only if they smoke a few cigars a year. Vaping is generally not separated from regular cigarette smoking, and e-cigarette users will likely be designated as smokers. Marijuana use presents a unique case, as social use might not automatically place users in the smoker category, depending on the insurer.

To qualify for non-smoker rates, most life insurance companies require applicants to be tobacco-free for at least a year. Even if tests no longer show nicotine in the system, being honest about one's smoking history is critical. Lying about tobacco use could result in claim denials or even legal consequences due to insurance fraud.

Life insurance companies may also require a medical exam to determine an applicant's health and tobacco use. During the exam, insurers often test for nicotine and its byproduct, cotinine, to determine whether an applicant has used tobacco. These tests are reliable indicators of smoking or other forms of tobacco use, helping insurers accurately assess an applicant's risk.

Tobacco risk classifications

Tobacco use can affect how a life insurance company assesses an applicant's risk, and these applicants will likely fall into one of the tobacco risk classes. The classifications are Preferred Tobacco and Standard Tobacco.

Preferred Tobacco

Preferred Tobacco means that after reviewing your health, family history, and lifestyle habits, the underwriters would have considered you Preferred or Preferred Plus if it wasn't for your tobacco use.

Standard Tobacco

Standard Tobacco mirrors the Standard or Standard Plus non-tobacco risk classes. However, some insurance companies are more flexible with certain usages, such as cigars or chewing tobacco. With the right insurer, qualifying for the more affordable non-tobacco risk classes is possible.

Other Tobacco Risk Classes

Some insurers use a numerical system (1-16) for their tobacco risk classes, while others use letters (like A-P). The higher the number or letter in the alphabet, the higher the risk and the more expensive the premiums.

How to Get a Better Tobacco Risk Classification

If you're applying for life insurance now, there isn't a lot you can do to change your current classification. However, if you know you'll be shopping for life insurance in the next few years, you can take steps to improve your health classification. These include:

• Applying early: The average cost of life insurance increases by 4.5 to 9% every year.
• Addressing any health issues: Getting a health condition under control or resolved can lead to a better classification.
• Quitting tobacco: If you're a tobacco user, quitting will have a significant impact on your health rating and premiums.

The underwriting stage of the application process

The underwriting process will also consider other factors, such as your age, health, family medical history, lifestyle choices, and the amount of coverage you are applying for. These factors, along with your tobacco use, will contribute to the insurer's assessment of your risk class. If you are classified as a tobacco user, you will likely face higher premium rates compared to non-tobacco users. However, it's important to note that not all insurers assess risk in the same way, and some may be more lenient towards chewing tobacco users. Working with an independent insurance agent can help you find these more lenient insurers and navigate the application process.

It is essential to be honest during the underwriting stage and disclose any tobacco use. Failing to do so could result in your policy being voided or your claim being denied in the future. Additionally, quitting tobacco use can improve your chances of obtaining life insurance and may even lead to lower premiums once you have maintained a tobacco-free status for a certain period, typically at least one year.

How to find the best life insurance for tobacco chewers

If you're a tobacco chewer, you might be worried about the impact this will have on your life insurance premiums. The good news is that you can still get life insurance, but you'll likely be classified as a smoker, which means you'll pay more than non-smokers.

Tobacco use increases life insurance rates because of the associated health risks. Tobacco chewers are typically classified the same as smokers, resulting in higher rates. The longer you wait to quit using chewing tobacco, the more expensive your life insurance rates will get as you age.

Use an independent insurance agent

Contacting individual life insurance companies can be time-consuming, so consider using an independent insurance agent to find the best whole life or term life insurance for you. Independent agents have access to dozens of insurance policies from different carriers and are well-versed in the application process for smokers and non-smokers. They can help you secure the lowest possible rates despite the health risks of chewing tobacco.

No-exam life insurance

If you can't quit chewing tobacco, there are still life insurance options available. Some companies offer policies with no medical exam and fixed rates for all policyholders. While rates on these plans may not be as low as non-smoker rates, they're usually cheaper for tobacco users than policies that require an exam. However, be aware that even if you go for a no-exam policy, you should still disclose your tobacco use. If you don't and the insurance company finds out, they could reduce the death benefit or refuse to pay it altogether.

Group life insurance

Some companies offer group life insurance to their employees, which doesn't separate applicants into smoker or non-smoker categories. This means that chewing tobacco won't affect how much you pay in premiums. However, group life insurance doesn't follow you if you leave your employer.

Have your current policy re-evaluated

Life insurance companies often incentivize quitting tobacco, so if you've stopped chewing tobacco for at least 12 months, you can apply for a re-evaluation of your policy. The insurance company will schedule a health exam, and if you pass, your premiums may be adjusted.

Tips for getting life insurance as a tobacco chewer

• Be honest about your tobacco use. Lying about tobacco use can lead to serious consequences, such as policy cancellation.
• Stop using chewing tobacco if you can. The best way to lower your life insurance rates is to quit using tobacco as soon as possible.

Frequently asked questions