Smoking's Impact: Higher Life Insurance Rates And Health Risks

Smoking is the leading cause of preventable death in the US, with cigarette smoking alone causing around 480,000 deaths per year. It's no surprise then that life insurance companies take the risks of smoking into account when determining premiums for smokers. Smokers can expect to pay higher rates than non-smokers, as insurers generally categorise applicants into separate risk classes. This is because tobacco use has been proven to decrease life expectancy, so insurers charge smokers more to reflect the greater chances of paying a death benefit than for non-smokers.

How much more do smokers pay for life insurance?

Life insurance companies determine premiums based on risk factors, and as smoking is the leading cause of preventable death in the US, it is considered a high-risk factor. Smokers can expect to pay a much higher rate for coverage than non-smokers, with some sources stating that smokers can pay nearly four times more for a life insurance policy.

The exact amount smokers pay depends on a variety of factors, including age, gender, and the coverage amount. For example, a 30-year-old non-smoking man with a $700,000, 20-year term life insurance policy might get quoted a monthly premium of $50.13, whereas a smoker could pay a monthly premium of $98.01 for the same coverage. Similarly, a healthy 40-year-old male smoker of average weight and height 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.

The type of tobacco product used also impacts the policy differently. Cigarette smoking is almost always going to lead to someone being assigned to a smoking risk class, whereas other forms of tobacco usage may differ based on the company and the usage. For example, someone who occasionally smokes cigars or chews tobacco may be classified as a non-smoker by the insurer.

In addition, the frequency of tobacco usage will also affect the cost of coverage. For instance, cigar and pipe smokers will likely receive smoker life insurance rates if they smoke more than one cigar per month, test positive for nicotine, or use any other tobacco products. However, if they smoke less than one cigar per month, don't use other forms of tobacco, and are in great health, many companies won't consider them smokers, and they'll qualify for the best life insurance rates.

Life insurance companies also consider vaping a form of smoking, so vapers will be rated as smokers. However, some companies may offer better rates for people who only vape.

The definition of a smoker varies among insurance companies. Most insurers categorise people as smokers if they regularly use tobacco or nicotine in any form, including cigarettes, cigars, cigarillos, smoking cessation products like nicotine gum and patches, and e-cigarettes and vapes.

Marijuana users may also be considered smokers, depending on the frequency and method of consumption. Occasional or social use might not automatically place someone in a smoker category, but regular smoking will likely lead to a smoker classification, resulting in higher premiums.

Insurance companies verify an applicant's smoking status through a medical exam and a review of their medical history. During the exam, insurers test for nicotine and its byproduct, cotinine, through blood, saliva, or urine samples. These tests can detect nicotine or cotinine in the system for up to 10 days after use.

In addition to the medical exam, insurers may also request medical records to see if healthcare providers have noted any history of tobacco use.

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

When it comes to life insurance applications, most insurers categorise people as smokers if they regularly use tobacco or nicotine in any form. This includes cigarettes, cigars, cigarillos, and smoking cessation products like nicotine gum and patches. If you smoke cigars infrequently, some insurers may offer non-smoking rates, but this is not always the case.

Vaping and e-cigarettes are also included in this classification, and life insurance providers generally do not separate vaping from regular cigarette smoking. If you use these products, you will likely be designated as a smoker and pay the same premiums.

Marijuana use may also impact your life insurance rates, depending on the frequency and method of consumption. Occasional or social use may not automatically place you in the smoker category, but regular use, especially through smoking or vaping, will likely lead to a smoker classification and higher premiums.

It is important to note that the definition of a "smoker" can vary between insurance companies, and it is always best to disclose any tobacco or nicotine use honestly on your application to avoid issues with your policy later on.

Does vaping affect your life insurance?

Vaping will not prevent you from getting life insurance, but insurers will consider you a smoker. This means that life insurance for vapers is two to three times more expensive than for non-smokers.

Life insurance companies generally treat vaping the same as smoking when determining how much you'll pay for a policy. This is because there still isn't much research on vaping and its long-term health effects, so most insurers consider vape users riskier to insure than non-users.

If you want to avoid being classified as a smoker due to your use of e-cigarettes and keep your premiums low, you need to quit vaping long before you apply for life insurance. Insurers want you to be completely tobacco- and vape-free for a set period — usually 12 months, but sometimes up to two or three years — before they'll offer you non-smoker rates.

When you apply for life insurance, the insurance company will evaluate your overall profile, including your age, gender, health, and lifestyle habits, and assign your premiums. The fewer health conditions and risk factors you have, the less you'll pay for life insurance.

Most insurers classify e-cigarette use as tobacco use because vape juice often contains nicotine, which insurers test for using a medical exam. Tobacco users receive a separate health classification, which translates into a costlier policy.

During the underwriting process — which is the process the insurance company uses to assess your insurance risk and set your rates — you'll likely have to take a medical exam. The exam includes blood and urine tests. The blood test looks not just for nicotine but also for cotinine — a byproduct of your body processing nicotine that stays in your blood even after nicotine has left your system.

Insurers can also have access to your medical records through the Medical Information Bureau (MIB) and may request an attending physician statement (APS) from your primary doctor to confirm the details of your health history.

Any substance you vape can show up during your medical exam or in your health history. You won't be denied coverage due to your use of e-cigarettes, but you might be penalized if you try to hide it from the insurance company. If you misrepresent your e-cigarette use and die during the policy's contestability period, which usually lasts two years and allows insurers to investigate any death claim considered suspicious, your insurance company can refuse to pay the death benefit to your beneficiaries, leaving them without financial protection.

A 30-year-old female who vapes nicotine and is otherwise in good health can expect to pay $65.75 per month for a 20-year term life insurance policy with a $500,000 payout. A 30-year-old male with the same profile can expect to pay $81 per month for the same coverage.

Does cannabis affect your life insurance?

If you're a casual cannabis user who doesn't combine marijuana with tobacco, you'll likely fall into the non-smoker category for life insurance. However, if you're consuming cannabis regularly or more than once a day, you'll probably pay a higher rate.

Life insurance companies often consider whether you smoke or ingest cannabis and how frequently you use it. Occasional use may have minimal impact on your premium, especially if you test negative for THC during a drug screening. But if you test positive for THC, which suggests heavier use, insurers may see you as a riskier and more expensive applicant.

If you have a medical marijuana prescription, insurers usually focus more on the underlying health condition rather than the marijuana use itself. That said, the nature of the condition can still influence your classification. Chronic or severe health issues may lead to higher premiums, regardless of how you use marijuana.

When you apply for life insurance, you'll often be asked whether you use marijuana, as well as other prescription and recreational drugs. They may ask you detailed questions about your marijuana use, such as how often you use it and whether you use synthetic or botanical cannabis.

It's essential to be honest about your marijuana use. Lying on a life insurance application can result in denial or cancellation of your coverage. If you die and the insurer discovers you were dishonest during the application, the company could deny your loved ones' claim.

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

If you're a smoker, you can expect to pay a higher premium for your life insurance policy than a non-smoker. This is because tobacco use is considered a proven health risk, impacting your life expectancy, which is a major cost factor for insurance companies when setting their rates.

However, if you quit smoking, you may be able to get a better price for your life insurance premium. Here's what happens to your life insurance premium if you quit smoking:

• Most insurers will require you to be tobacco-free for at least 12 months to be considered a non-smoker.
• You will likely need to sign a non-smoking declaration stating that you haven't smoked or consumed any tobacco or nicotine products in the last 12 months.
• You may need to take a urine test to prove there's no trace of nicotine in your system.
• Your insurer may also want to confirm that there haven't been any significant negative changes to your health.
• If you've already purchased a life insurance policy as a smoker and then quit, you can ask your provider for a rate reconsideration. They will likely require you to take another medical exam, and your health will be re-evaluated.
• If you decide to switch to a different insurance provider, make sure you don't cancel your current policy until the new one is 100% active.

By quitting smoking, you can not only improve your health but also reduce your life insurance premium.

Frequently asked questions