Smoking Status: Life Insurance And Your Health

Smoking is a leading cause of preventable death, contributing to hundreds of thousands of deaths annually. It harms nearly every organ in the body and can cause various cancers, respiratory disease, and heart disease. It's no surprise, then, that life insurance companies take smoking status into account when determining premiums. Smokers statistically have a higher mortality rate than non-smokers, so life insurance providers will typically ask whether you smoke on your application form. This is because your smoking status significantly impacts your insurance costs. If you are a smoker, you can expect to pay a higher premium than a non-smoker due to the increased health risks associated with smoking.

The impact of smoking on health and insurance premiums

Smoking is known to have detrimental effects on health, increasing the risk of various illnesses and diseases. It is the leading cause of preventable death in the US, contributing to nearly 480,000 deaths annually, according to the American Lung Association's 2024 report. Similarly, in the UK, smoking is the main cause of preventable illness and premature death, resulting in approximately 74,600 deaths each year. The habit harms nearly every organ in the body and can lead to respiratory issues, heart disease, and various types of cancer.

Given the well-documented health risks associated with smoking, it is not surprising that life insurance companies take this factor into account when determining premiums. Smokers are considered a higher risk group and, therefore, typically pay higher insurance premiums than non-smokers. This is because they are statistically more likely to suffer from health issues and die within the term of their life insurance policy. The increased premiums reflect this heightened risk of tobacco users facing serious health complications.

The impact of smoking on insurance premiums can be significant. For example, a 35-year-old non-smoker in the UK may pay around £8.61 per month for a £150,000 25-year mortgage protection policy, while a smoker could pay approximately £14.24 for the same coverage. Similarly, a 30-year-old non-smoking man in Canada with a $700,000 20-year term life insurance policy might pay a monthly premium of $50.13, whereas a smoker's premium could be as high as $98.01.

Insurance companies have strict criteria for classifying individuals as smokers. Most insurers define a "smoker" as someone who has used nicotine products, including cigarettes, cigars, or a pipe, within the last 12 months. This definition also includes the use of smoking cessation products, such as nicotine patches and gum, as well as e-cigarettes and vapes. The presence of nicotine or its byproducts in the body, such as cotinine, is often tested through medical exams required by insurance companies.

It is important to note that dishonesty about smoking status on a life insurance application can have serious consequences. Lying about smoking may seem like a way to avoid higher premiums, but it can lead to policy cancellation, denied claims, and financial hardship for beneficiaries. Insurance companies have various methods to verify smoking status, including medical exams, reviewing medical records, and checking third-party databases. Therefore, it is always best to be honest when applying for life insurance, even if it results in higher premiums.

However, there is an incentive to quit smoking. Many insurance companies offer the opportunity for former smokers to reclassify as non-smokers after a period of abstinence, typically after being tobacco-free for at least a year. This reclassification can result in lower premiums that reflect the reduced health risks associated with non-smokers.

The different types of tobacco products that life insurance companies test for

Life insurance companies evaluate all forms of tobacco use when determining your risk class and premium rates. Tobacco use, in any form, often places you in a more expensive smoker classification. However, each type of tobacco product may impact your policy differently, depending on frequency and type of use.

Cigarettes

Life insurance underwriting classifies applicants as being either a tobacco risk or non-tobacco risk. Smokers who use cigarettes regularly are considered high risk to insure, so you’ll be placed into one of the tobacco risk classes if you apply for life insurance as a current cigarette smoker.

Cigars

If you smoke cigars irregularly, some life insurance providers might cut you a break. But underwriting guidelines usually state that you can only smoke a few cigars a year. And it’s possible that some life insurers won’t make a distinction between occasional cigar use and regular cigarette use.

Vaping

Life insurance providers generally don’t separate vaping from regular cigarette smoking. If you use e-cigarettes or vaping products, expect that the provider will designate you as a smoker, just like if you used traditional tobacco.

Smoking cessation products

Products that help you quit smoking, like nicotine gum and nicotine patches, still leave traces of cotinine in your body. So, if you use these products, you’ll still probably be classified as a tobacco risk, even though there’s no tobacco in them.

Chewing tobacco

Though chewing tobacco isn’t smoked, it contains nicotine and carcinogens, which can still have long-term health impacts, including oral cancers and heart disease. Insurers recognize these risks, so even though you’re not inhaling smoke, users of chewing tobacco are typically classified in the smoker category. This classification often leads to higher premiums, similar to what you’d pay as a cigarette smoker. If you chew tobacco regularly, it’s important to shop around, as some insurers may offer slightly more competitive rates than others for this type of use.

Pipe smoking

While pipe smoking may seem less harmful than cigarettes or cigars, it still involves inhaling nicotine and harmful substances. Health risks include respiratory problems and cancers, particularly of the lungs and throat. Most life insurance companies place pipe smokers in the smoker category, leading to higher premiums. However, if you only smoke a pipe on rare occasions, some insurers may allow you to qualify for non-smoker rates. It’s worth noting that honesty about your pipe smoking habits is essential, as inaccurate information could result in a denied claim.

How insurance companies verify smoking status

Life insurance companies use several methods to verify whether an applicant smokes. One of the most common ways is through a medical exam, which may include testing for nicotine or its byproducts, like cotinine, in your blood, urine, or saliva. Even if you claim to have quit smoking, these tests can detect nicotine for several days or weeks, depending on how much and how often you used tobacco.

Some companies may also request access to your medical records, which could reveal a history of smoking or treatments related to smoking-related illnesses. As no-medical-exam life insurance policies become more popular, insurers have also started to use technology to verify smoking status. Many insurance companies run reports from third-party databases that aggregate data from health and lifestyle sources. These reports can reveal previous life insurance applications or claims, which might include information about your smoking status.

If any discrepancies are found between what you’ve stated and what these databases show, it can lead to higher premiums or even denial of coverage despite the lack of a medical exam. Honesty is essential, as lying about smoking can still result in policy cancellation if discovered later.

Lying about your smoking status might seem like a tempting way to get lower premiums, but it can have serious consequences. Insurance companies take smoking very seriously because it significantly increases health risks, and if they discover that you’ve misrepresented yourself, it can lead to policy cancellations or denied claims. If you lie about smoking and the insurance company uncovers the truth during the application process, your policy could be voided before it even starts. Most insurers conduct thorough background checks, which may include reviewing medical records or requiring a medical exam.

Even if you manage to secure a policy initially, insurers can still contest claims if they discover your dishonesty during the contestability period, which typically lasts two years. If you pass away during this time and it’s revealed that you were a smoker, your beneficiaries might not receive the death benefit. Beyond the financial risks, lying on a life insurance application can also lead to legal consequences. Insurance fraud is a serious offence and could result in fines or other legal penalties.

The consequences of lying about smoking on a life insurance application

Lying about your smoking status on a life insurance application may seem like a tempting way to secure a lower premium. However, it is a form of insurance fraud and can lead to serious consequences, including policy cancellation, denied claims, and potential financial hardship for your beneficiaries.

Verification of smoking status

Insurance companies have multiple ways to verify your smoking status, making it difficult to hide your smoking habit successfully. They may conduct medical exams, review medical records, or check third-party databases.

Policy cancellation and denied claims

If the insurance company discovers your dishonesty during the application process or within the contestability period, they can cancel your policy or deny claims. This could leave your loved ones without the financial protection they need.

Financial risks

Lying about smoking can result in higher premiums or even denial of coverage. Smokers are considered a higher risk due to the potential for smoking-related health issues.

Legal consequences

Insurance fraud is a serious offence and can result in fines or other legal penalties.

Delayed claim payouts

Even after the contestability period, if the truth about your smoking habit comes out, it could still cause complications and delays in claim payouts.

Impact on beneficiaries

If you lie about smoking and pass away within the contestability period, your beneficiaries might not receive the death benefit. This could leave them in financial trouble if they do not receive the expected payout.

Honesty is the best policy

While smokers may face higher premiums, being truthful on your life insurance application ensures that your policy remains valid and your loved ones are fully protected. It is always best to be honest, even if it means paying a higher premium. This ensures that your policy will be honoured when your family needs it the most.

How quitting smoking can lower your life insurance premiums

Life insurance companies determine premiums based on risk. Since smokers statistically have a higher mortality rate than non-smokers, you can expect to pay a higher life insurance premium if you currently use tobacco or have a recent history of smoking. However, quitting smoking can significantly lower your life insurance premiums over time.

When you apply for life insurance, the company will ask about your smoking habits and may require a medical exam to test for nicotine or its byproducts, like cotinine. If you are a smoker, you will likely be placed in a higher-risk category and charged higher premiums. However, if you quit smoking and maintain a smoke-free lifestyle for a certain period, you may be able to reduce your premiums.

Most insurance companies require that you have been smoke-free for at least 12 months before they will consider reclassifying you as a non-smoker. Some may require up to two years or more, depending on their specific policies. Once you've reached this period, you can contact your insurer and request a review of your policy, which may involve answering health-related questions or undergoing a medical exam to confirm that you no longer use tobacco. If the review goes well, your premiums could be adjusted to reflect the rates offered to non-smokers, resulting in significant savings.

It's worth noting that the process of getting reclassified isn't automatic. You must take the initiative to notify your insurance company and provide the necessary evidence. Additionally, the longer you remain smoke-free, the more favorable your rates are likely to be. Not only can quitting smoking improve your overall health and longevity, but it can also provide substantial financial benefits when it comes to your life insurance.

Different insurance companies have different thresholds for considering someone a non-smoker. For example, Aditya Birla Sun Life Insurance considers a person a non-smoker if they have not smoked or consumed tobacco for five continuous years. It's important to be honest when answering questions about your smoking status on insurance forms, as lying can have serious consequences, including policy cancellation or denied claims.

Frequently asked questions