Tobacco Users: Life Insurance Considerations And Costs

Life insurance companies consider tobacco use a major lifestyle risk, and as a result, users will have to pay higher premiums. Tobacco use 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. This means that tobacco users are often placed in a high-risk category, which leads to higher insurance costs.

When it comes to classifying someone as a tobacco user, insurance companies have different definitions. Some consider occasional cigar smokers as non-tobacco users, while others do not. Vaping is almost always considered the same as cigarette smoking, and nicotine replacement products such as patches and gum will still result in a smoker classification due to the presence of nicotine in the body.

Cigarette, cigar, and vape users

If you are a cigarette, cigar, or vape user, you will typically be classified as a smoker by life insurance companies. This means that you will likely be placed in a high-risk category and face higher premiums than non-smokers. The increased cost of life insurance for smokers reflects the greater likelihood of tobacco users facing serious health issues, such as heart disease or cancer.

In general, life insurance companies do not distinguish between cigarette smoking and vaping due to the additives, flavors, and chemicals in vape products that can be harmful to health. Therefore, if you use e-cigarettes or vaping devices, you will most likely be designated as a smoker.

When it comes to cigar smokers, there may be some leniency depending on the insurance provider. Occasional cigar users (1-2 cigars per month) might be categorized as non-tobacco users by certain insurance companies. However, it is important to note that this classification can vary, and some insurers may not differentiate between occasional cigar smoking and regular cigarette smoking.

It is crucial to be honest about your smoking habits when applying for life insurance. Lying about tobacco use or any lifestyle choice on an application or during a medical exam is considered insurance fraud. If the insurer discovers any false information, they may deny or rescind your policy, or reduce the payout amount in the event of your death.

To obtain life insurance as a smoker, you can expect to undergo a medical exam that includes nicotine and cotinine tests to confirm your tobacco usage details. These tests may include blood, urine, saliva, or hair samples. Additionally, the insurance company may request your prescription history, medical records, or even review your social media posts for any indications of smoking or tobacco use.

While life insurance for smokers may be more expensive, there are ways to reduce costs. Quitting smoking is the most effective way to access more affordable rates. Most life insurance providers require you to be nicotine-free for at least a year to qualify for non-smoking rates. During this time, you may consider purchasing a term life insurance policy specifically for smokers, which can usually be canceled without fees once you have quit smoking.

Occasional cigar smokers

Life Insurance for Occasional Cigar Smokers

Life insurance companies consider tobacco use a proven health risk, which increases the likelihood of serious health issues such as heart disease or cancer. As a result, tobacco users are often placed in a high-risk category and face higher premiums. However, occasional cigar smokers may be able to obtain more affordable life insurance rates compared to regular smokers.

When determining your eligibility and premium, life insurance companies will evaluate your current health and lifestyle risks. They may require a physical exam, including nicotine tests, to confirm your tobacco usage details. Any health issues associated with smoking may also factor into your health exam and, ultimately, your life insurance rate.

If you're an occasional cigar smoker, it's worth shopping around and comparing quotes from different insurance providers. Some insurers may offer more competitive rates for this type of tobacco use. Additionally, consider the type of life insurance policy you need, as term life insurance is generally cheaper than whole life insurance.

Remember, the only way to access more affordable life insurance as a smoker is to quit smoking completely. To qualify for the best non-smoker rates, you must refrain from using any tobacco products. Even after quitting, you may need to wait for a period of one to two years before qualifying for non-smoking rates.

Marijuana use

In the past, life insurance companies were not very accepting of marijuana usage. However, in recent years, as perceptions of marijuana have changed, many companies have become more lenient in their underwriting policies for marijuana users. Some insurers now view marijuana use as low-risk behaviour and offer lower premiums as a result.

When evaluating marijuana use, insurance companies consider the frequency and method of consumption, as well as whether the use is recreational or medicinal. Occasional marijuana use, especially through non-smoking methods such as edibles or oils, may not significantly impact premiums. However, daily use or smoking marijuana may lead to higher premiums or even result in the user being placed in the "smoker" category.

It is important to note that insurance companies can verify marijuana use through medical exams, including blood and urine tests, which can detect marijuana use for up to a month after the last use. Therefore, it is crucial to be honest about marijuana use during the application process, as lying can result in denied claims or legal consequences due to insurance fraud.

For medicinal marijuana users, insurance companies typically focus more on the underlying health condition being treated rather than the marijuana use itself. However, the nature of the condition can still influence the classification and resulting premium.

To obtain the best rates as a marijuana user, it is recommended to work with an independent broker who can match you with the most suitable insurer for your specific situation. Additionally, taking a break from marijuana use before the medical exam and staying well-hydrated can help improve the test results.

Examples of Life Insurance Companies' Policies on Marijuana Use

• Company A: Preferred non-smoker rates for applicants using marijuana up to 4 times a month. Standard non-smoker rates for up to 8 times a month.
• Company B: Preferred plus non-tobacco rates for those who smoke marijuana up to once a month.
• Company C: Preferred non-tobacco rates for those who smoke marijuana twice a week.
• Company D: Plus non-tobacco rates for those who smoke marijuana up to 3 times per week with a positive THC blood test.
• Company E: Preferred plus non-tobacco rates for those who use marijuana up to 4 times per week with no marijuana testing during the exam.
• Company F: Standard non-tobacco rates for those who consume marijuana 3 times or less per month.
• Company G: Standard non-tobacco rates for those who use marijuana for medicinal reasons with a verified prescription.
• Company H: Non-smoker rates for marijuana users, regardless of frequency, as long as the applicant lives in a state that has legalised marijuana.
• Company I: Preferred best non-smoker rates for those who use marijuana up to twice a year. Standard non-smoker rates for up to twice a month. Tobacco rates for more frequent use.
• Company J: Standard smoker rates for those who use marijuana once a month. Preferred non-smoker rates for up to 4 times a week.
• Company K: Standard smoker rates for occasional users (up to 2 times a week), including ingestibles. Table 2 ratings for daily users and medicinal users.
• Company L: Standard tobacco rates for recreational users (up to 3 times a month). Standard tobacco rates if the applicant has used marijuana in the past 12 months. Medicinal users are individually considered, and daily users are declined.
• Company M: Smoker rates for any marijuana use. Table 4-6 ratings for daily users and medicinal users.
• Company N: Preferred non-smoker rates for up to 4 times a month with negative lab results for THC. Standard smoker rates for positive lab results. Daily users will likely be rated very low or declined.
• Company O: Standard non-smoker rates for up to once a week with negative HOS/THC results. Smoker rates for more frequent use. Daily users and medicinal users will likely be declined.
• Company P: Preferred smoker rates for up to 5 times a month. Decline for heavy recreational use (4 times a week or more) and daily use. Standard tobacco rates for medicinal users.
• Company Q: Standard non-smoker rates for up to 2-3 times a week for applicants 21 years or older with negative HOS results for nicotine. Tobacco rates for applicants under 21 years old. Decline for daily users and those involved in the marijuana industry.
• Company R: Preferred non-smoking rate for up to 4 times a month. Avoid expensive "smoker's rates" for up to 8 times a month.
• Company S: Standard non-smoker rates for recreational users of up to 1-2 times a month. Standard tobacco rating for more frequent use.
• Company T: Standard tobacco rates for all recreational users, including ingestibles. Decline for daily users.
• Company U: Standard non-smoker rates for up to 3 times a week with negative or positive HOS results. Non-smoker Table B rates for up to 4-6 times a week. Decline for daily users. Standard to Table 2 ratings for medicinal users.

Tips for Marijuana Smokers to Get the Best Life Insurance Rates

If you are a marijuana smoker, here are some tips to help you get the best life insurance rates:

• Work with an independent life insurance agent who works with multiple carriers and can match you with the most suitable company for your specific situation.
• Be honest about your marijuana use during the application process. Lying or omitting information can result in denied coverage or legal consequences.
• Shop around and compare rates from multiple carriers to find the best deal.

Chewing tobacco

Life insurance companies consider tobacco use a proven health risk and will typically place tobacco users in a high-risk category, resulting in higher premiums. This includes those who chew tobacco, even if only occasionally. Chewing tobacco contains nicotine and carcinogens, which can have long-term health impacts, including oral cancers and heart disease. As a result, life insurance providers will usually classify tobacco chewers in the same category as cigarette smokers, leading to higher premiums.

However, it is worth noting that some insurers may offer slightly more competitive rates for tobacco chewers, so it is recommended to shop around and compare quotes from multiple providers. Additionally, occasional cigar and tobacco chewers (1-2 times per month) may be classified as non-tobacco users, depending on the insurance company.

When applying for life insurance, it is crucial to disclose your tobacco-chewing habits honestly. Lying about tobacco use on a life insurance application is considered insurance fraud and can result in the cancellation or rescission of the policy. Furthermore, during the contestability period of the policy, typically the first two years, the insurer has the right to review the application for false information. If they find any, they may deny the death benefit or lower the payout amount.

To qualify for non-smoker rates, most life insurance companies require individuals to be tobacco-free for at least 12 months. Some insurers may also require a longer period of abstinence, such as up to five years. Therefore, if you are trying to quit chewing tobacco, it is advisable to consider purchasing life insurance while you are still using tobacco to ensure you have coverage during this time. You can then work towards qualifying for non-smoker rates once you have successfully quit.

Vaping

Even those who only occasionally vape or use e-cigarettes can experience two to five times higher life insurance rates than non-smokers. However, some insurance companies may offer policies specifically tailored to vapers or may have more lenient underwriting guidelines for individuals who vape. It is important to shop around and compare policies from multiple companies to find the best coverage and rates for your individual needs.

Life insurance companies typically charge higher premiums to individuals who vape nicotine than non-smokers. The specific amount of the increase can vary depending on the insurance company and the policy being offered. Generally, individuals who vape are classified as smokers by life insurance companies, even if they do not use traditional tobacco products. This is because vaping can still pose health risks, and studies have shown that it can lead to adverse health effects similar to smoking.

The increase in premiums for individuals who vape compared to non-smokers can vary depending on factors such as age, health status, and the amount of coverage sought. Some life insurance companies may offer policies specifically tailored to individuals who vape, which may have significantly higher premiums than policies for non-smokers.

It is important to note that life insurance premiums are based on various factors, and smoking or vaping is just one of them. If you are considering purchasing life insurance and are a vaper or smoker, it is best to shop around and compare policies from multiple companies to find the best coverage and price for your individual needs.

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