Smoker's Life Insurance: Affordable Coverage After Quitting

Life insurance is more expensive for smokers than non-smokers, as tobacco use is a proven health risk and impacts life expectancy. Smokers can pay nearly four times more for a life insurance policy compared to non-smokers. However, if you quit smoking, you may be able to get cheaper life insurance. To be considered a non-smoker, you typically need to be nicotine-free for at least a year. Some insurance companies may also require you to be tobacco-free for at least 12 months before they will consider reclassifying you for non-smoker rates.

Life insurance for occasional smokers

Life insurance companies treat smokers as high-risk policyholders as they are more likely to develop health issues and pass away at a younger age. This means that smokers will generally pay higher premiums than non-smokers. However, this doesn't mean that occasional smokers will be treated the same as those who smoke regularly.

The definition of a smoker varies from company to company. Some companies consider you a non-smoker if you haven't smoked a cigarette in 12 months, but you can smoke a pipe or cigar, or chew tobacco. Other companies will consider you a smoker if you've used any tobacco or nicotine product in the last 12 months, including cigarettes, pipes, smokeless tobacco, chewing tobacco, e-cigarettes, and nicotine substitutes such as patches and gum.

Life insurance companies can test for smoking through a medical exam, which typically includes taking blood, urine, and saliva samples. These samples are tested for nicotine and its byproduct, cotinine, which is a reliable indicator of smoking or other forms of tobacco use. In addition to the medical exam, insurers may also request your medical records to see if your healthcare providers have noted any history of tobacco use.

The time it takes for nicotine to leave your system depends on factors such as how much you've smoked and your body's ability to process it. Generally, nicotine is detectable for one to three days after use, while cotinine can last up to 10 days. However, it's important to note that nicotine can stay in your system for up to 30 days, and cotinine can be detected for up to four days.

Most life insurance companies require you to be tobacco-free for at least 12 months to be considered a non-smoker. However, some companies are more strict, and it may take up to 24 months to qualify for non-smoker rates. It's important to be honest about your smoking history, as lying could result in claim denials or legal consequences.

If you only smoke occasionally, such as a few cigars a year or less than one cigar per month, some life insurance companies may not consider you a smoker and you may qualify for non-smoker rates. However, it's important to disclose your tobacco use on your application, as failing to do so could be considered fraud.

How to get cheap life insurance as a smoker

While it is possible for smokers to get life insurance, they typically pay higher rates than non-smokers. This is because smoking impacts life expectancy, and life expectancy is a major factor in determining insurance rates. Smokers can expect to pay between 164% and 343% more for life insurance than non-smokers, with some sources stating that smokers pay nearly four times more.

The best way to get cheaper life insurance as a smoker is to quit smoking. However, this is not always easy, so there are other ways to find more affordable insurance.

Shop Around

The key to finding the best rates is to compare quotes from multiple insurers. An independent insurance agent can help with this.

Bundle Insurance Policies

You can often get a discount if you bundle your life insurance with other policies, such as car or home insurance, from the same company.

Ask to be Re-rated

If you already have a life insurance policy and then quit smoking, you can ask your insurance company to re-rate you after you have been smoke-free for at least 12 months. This will require a new medical exam, and your new rate will take into account any new medical conditions that have developed since your last exam.

Choose a Different Type of Policy

A no-exam life insurance policy may be a good option for smokers who would struggle to pass a medical exam due to other conditions and don't need a large payout. However, these policies tend to be more expensive and offer lower maximum payouts.

Pay Annually

You can often get a discount by paying your premiums annually instead of monthly.

Buy as Soon as Possible

The cost of life insurance increases with age, so buying a policy as early as possible can help lower the cost of an expensive premium due to your smoking history.

Choose a Short-Term Policy

You could buy a cheaper, short-term policy and then switch to a longer-term policy once you have been smoke-free for long enough to qualify for non-smoker rates.

Be Honest

Lying about your smoking habits on a life insurance application is considered fraud and could result in your policy being cancelled or your beneficiary's claim being denied.

Other Factors

In addition to smoking status, the cost of life insurance is also based on age, overall health, family medical history, and the type of coverage.

How long does nicotine stay in your system?

The length of time nicotine remains in your system depends on several factors, including the amount and frequency of nicotine exposure, as well as individual factors such as genetics, age, and liver and kidney function.

Nicotine has a half-life of around 2 hours, meaning that 2 hours after ingestion, roughly half of the nicotine will have left the body. However, nicotine is broken down into various substances, including cotinine, which has a longer half-life of 15 to 20 hours. Cotinine is often the substance tested for when determining tobacco use, as it stays in the body for a more extended period.

• Blood test: Nicotine is typically detectable for one to three days after use, while cotinine can last up to 10 days.
• Urine test: Nicotine and cotinine are usually undetectable after three to four days, but this may be longer if menthol cigarettes are involved.
• Saliva test: Saliva tests are highly sensitive and can detect cotinine for up to four days.
• Hair test: Hair tests are reliable for long-term detection, showing nicotine use for one to three months, and in some cases, up to 12 months.

It's important to note that the detection times can vary depending on individual factors and the specific test methods used. Additionally, while nicotine replacement therapies do not contain tobacco, they still leave traces of cotinine in the body, which can lead to a person being classified as a tobacco user.

How to get reclassified as a non-smoker

Life insurance is more expensive for smokers as they are considered a higher health risk. However, if you quit smoking, you can ask your insurance provider to reclassify you as a non-smoker, which will reduce your premiums. Here is a guide on how to get reclassified as a non-smoker:

Understand the requirements

Most insurance companies require you to be tobacco-free for at least 12 months to be considered a non-smoker. This means no cigarettes, cigars, pipes, chewing tobacco, or any other nicotine products. Some companies may have different requirements, so be sure to check with your provider.

Take a medical exam

Your insurance company will likely require you to take a medical exam to verify that you have stopped using tobacco. This usually includes blood and urine tests that screen for nicotine and its byproduct, cotinine. Cotinine can also be detected in saliva and hair samples. It is important to be honest about your smoking history, as lying could result in legal consequences and denied claims.

Request a rate reconsideration

Once you have been tobacco-free for at least 12 months, contact your insurance provider and ask for a rate reconsideration. They will likely require you to take another medical exam to verify your non-smoker status. Keep in mind that if you have developed any new medical conditions since your last exam, this could affect your new rate.

Shop around

If you are unable to get a reduced rate from your current provider, you can always shop around for a new policy. Compare quotes from multiple insurers to find the best rates. You can also work with an independent insurance agent who can help you find companies that are more lenient when it comes to tobacco use.

Maintain your non-smoker status

Once you have been reclassified as a non-smoker, it is important to maintain your tobacco-free status. If you start smoking again, your insurance company may not allow you to change back to a non-smoker rate, and you will be stuck with higher premiums.

What happens if you lie about smoking on your application?

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 bend the truth to secure more affordable coverage, doing so is considered insurance fraud and can result in various consequences, from denied applications to criminal charges. Ultimately, honesty is the best policy when it comes to safeguarding your loved ones and avoiding unnecessary complications.

Decreased or denied death benefit

One of the most severe consequences of lying on a life insurance application is the potential for a decreased or denied death benefit. During the contestability period, which typically lasts for the first two years of the policy, the insurer has the right to investigate your application. If they discover that you weren't truthful about your smoking habits and you pass away within this period, your beneficiaries may receive a reduced payout or, in the worst-case scenario, nothing at all.

Increased premiums

In some cases, instead of denying your application, the insurer may adjust your premiums once they realise the risk is higher than initially presented. For example, if you misrepresent your weight or fail to disclose your participation in high-risk activities, your premiums could increase to reflect the higher risk.

Policy cancellation

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

Legal consequences

In rare cases, lying on a life insurance application can lead to criminal charges. Insurance fraud is a serious offence, and intentional fraud can result in fines, restitution, or even jail time.

Delayed claim payouts

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

To avoid these consequences, it is crucial to be honest about your smoking habits on your life insurance application. While smokers may face higher premiums, being truthful ensures that your policy remains valid and your loved ones receive the full protection they deserve.

Frequently asked questions