Jane Dotson
Life insurance is a financial safety net for your beneficiaries when you die. Life insurance companies set their policy terms and pricing based on your life expectancy, overall health, and factors that impact both, such as smoking or tobacco use. Tobacco use has been proven to decrease life expectancy and cause a host of serious health conditions, so insurers charge smokers higher premiums to reflect the greater chances of paying a death benefit than for non-smokers. This article will explore the reasons behind the higher cost of life insurance for smokers and provide insights into policy options and considerations for smokers seeking life insurance coverage.
| Characteristics | Values |
|---|---|
| Life insurance for smokers | More expensive than for non-smokers |
| Reasons | Smoking reduces life expectancy, increases risk of health issues, and is the leading cause of preventable death in the US |
| Types of life insurance | Term life insurance, whole life insurance |
| Term life insurance | Affordable, comes with few rules and tax restrictions, lasts for as long as you need it |
| Whole life insurance | Significantly more expensive than term life insurance, doesn't expire, comes with a cash value component |
| Preferred smoker rates | Offered by some insurers for occasional smokers |
| Non-smoker rates | Available after a specific amount of time (varies by insurer) of being smoke-free |
| Disclosure | Important to be forthcoming about nicotine use when applying for life insurance |
| Failure to disclose | May result in denial of coverage or increased rates |
| Comparison shopping | Recommended to find insurers with more competitive rates for smokers |
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What You'll Learn
Smoking reduces life expectancy
The New England Journal of Medicine found that smokers die a decade earlier than non-smokers. This means that insurers face a greater chance of paying out a death benefit for smokers than for non-smokers. Consequently, smokers are charged higher life insurance premiums to reflect this increased risk. The higher premiums for smokers are not just based on potential future health issues but also on the proven impact of smoking on life expectancy.
Tobacco use has been proven to decrease life expectancy. Cigarette smoking is responsible for about 480,000 deaths each year in the United States, making it the leading cause of preventable death, according to the American Lung Association's 2024 report. The impact of smoking on health is clear, and life insurance companies take these risks into account when determining premiums for smokers. As a result, smokers can expect to pay higher life insurance premiums than non-smokers.
The use of tobacco in any form often places individuals in a more expensive "smoker" classification for life insurance. This includes not only cigarette smoking but also habits like chewing tobacco and smoking cigars. Even occasional smokers may be quoted at regular smoker rates due to the associated health risks of nicotine use. Marijuana users may also be considered smokers, depending on the frequency of their usage.
Life insurance companies typically consider you a smoker if you have smoked cigarettes in the past 12 months. Some companies may also classify you as a smoker if you use vaping devices, electronic cigarettes, or nicotine substitutes such as patches and gum. It is important to be honest about your smoking status when applying for life insurance, as lying is considered insurance fraud.
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Higher premiums for higher risk
Life insurance for smokers is expensive because of the higher risk of health issues and reduced life expectancy associated with smoking. Smokers are more likely to suffer from serious health conditions such as cancer, lung disease, and diabetes, which can result in higher insurance premiums. According to the New England Journal of Medicine, smokers' life expectancy is reduced by 10 years compared to non-smokers. This increased risk of health issues and early death means that insurance companies often view smokers as high-risk clients and charge them higher premiums to compensate for the potential costs.
The use of tobacco, in any form, is often classified as a "smoker" and placed in a more expensive insurance category. This includes cigarettes, cigars, chewing tobacco, and electronic cigarettes (vaping). Even occasional smokers may be quoted at regular smoker rates due to the associated health risks of nicotine use. Some insurers may offer “preferred smoker” rates for those who smoke infrequently, but most require a smoke-free period before offering non-smoker rates.
The specific definition of a "smoker" varies among insurance companies, and some may be more lenient than others. For example, some insurers may classify cigar smokers as non-smokers if they smoke infrequently, such as once a month or less. Others may require a smoke-free period of 12 months or more before considering an applicant a non-smoker. It is important to be honest about smoking habits when applying for life insurance, as lying can be considered insurance fraud.
While life insurance for smokers is generally more expensive, there are ways to find more affordable options. Comparison shopping can help identify insurers that offer competitive rates for smokers. Additionally, term life insurance policies, which are valid for a specific period (usually 10 to 30 years), are typically much cheaper than permanent life insurance policies. Quitting smoking is also a sure way to lower your insurance premiums over time, as insurers may offer non-smoker rates after a year or two of being smoke-free.
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Different types of tobacco
Tobacco is available in many different forms, some more harmful than others. Here is a list of some of the most common types of tobacco products:
Cigarettes
Cigarettes are the most common form of tobacco use, with 14% of adults smoking, according to the Surgeon General. Cigarette smoking is responsible for 480,000 deaths each year in the US, making it the leading cause of preventable death.
Cigars
Cigar smoking has become more popular in recent years, with shade-tobacco farming on the rise. Cigars are considered a "nicotine delivery system" and can result in higher life insurance rates, although some insurers may classify cigar smokers as non-smokers if they smoke infrequently. Corojo, a type of tobacco grown in Cuba, is primarily used for making cigars.
Pipes
Pipe smoking is another traditional way of consuming tobacco. Aromatic fire-cured smoking tobacco is a dark leaf variety that is cured by smoking over gentle fires. Dokha, a type of tobacco grown in the UAE, Iran, and other gulf states, is also smoked through a pipe called a medwakh.
Chewing Tobacco
Chewing tobacco, also known as smokeless tobacco, is a significant cause of oral cancer and has been associated with other cancers, including esophageal, stomach, and pancreatic. It comes in various forms, such as plugs, spit tobacco, dip, snuff, and snus, and is often flavoured to make it more appealing to consumers.
Vaping and E-cigarettes
Vaping devices and electronic cigarettes are also considered smoking or nicotine delivery systems by life insurance companies, and their use can result in higher premiums. These products allow users to inhale an aerosol containing nicotine and other substances and are not approved by the FDA as quit-smoking devices.
While life insurance is generally more expensive for smokers, it is still possible to obtain coverage. Term life insurance is the most popular option for smokers, as it is more affordable and comes with fewer restrictions than permanent life insurance policies.
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Quitting can reduce rates
Quitting smoking can help you get a better rate on your life insurance. While it is possible to get life insurance as a smoker, you will pay a significantly higher premium than non-smokers. This is because smoking is associated with a number of health risks, including cancer, lung disease, and diabetes, and smokers have a lower life expectancy. As a result, insurers charge smokers more to reflect the greater likelihood of paying a death benefit.
The good news is that quitting smoking can help you get a better rate on your life insurance. Many insurers will consider you a non-smoker if you haven't smoked cigarettes or used any nicotine products in the past 12 months. Some insurers may even offer lower premiums after just one year of quitting. It's important to be honest about your smoking status when applying for life insurance, as lying can be considered insurance fraud.
If you're trying to quit smoking, be sure to discuss this with your insurer. They may be able to offer you a preferred smoker rate or allow you to reapply for coverage at a later date if you remain tobacco-free and in good health. Comparison shopping and considering a mix of different policy types can also help you find more affordable coverage as a smoker.
Term life insurance is generally a more affordable option for smokers than permanent life insurance, and some companies offer competitive rates and longer terms specifically for smokers. Legal & General America, for example, offers long-term lengths of up to 40 years and competitive rates for smokers.
In summary, quitting smoking can help you get a better rate on your life insurance by reducing your health risks and increasing your life expectancy. Be sure to shop around and discuss your options with an insurance agent to find the best coverage for your needs.
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Different insurers, different parameters
Different insurers have different parameters for classifying smokers and non-smokers, which can significantly impact the premiums offered to applicants. For instance, while some insurers consider occasional cigar smokers as non-smokers, others do not make this distinction and classify cigar smokers in the same category as regular cigarette smokers. Similarly, some insurers may offer "preferred smoker" rates to those who smoke infrequently, while others may not.
Legal & General America, for example, considers an applicant a smoker if they have used cigarettes, pipes, smokeless tobacco, chewing tobacco, electronic cigarettes, or nicotine substitutes within the last 12 months. In contrast, Prudential takes a more lenient approach and classifies an applicant as a non-smoker if they haven't smoked a cigarette in the past 12 months, even if they use other tobacco products.
The variation in these definitions can lead to significant differences in the premiums offered to applicants. For example, a 30-year-old female smoker in good health can expect to pay $65.75 per month for a 20-year term life insurance policy with a $500,000 payout, while a 30-year-old male smoker with the same health profile might pay $80.95 per month for a similar policy.
Additionally, some insurers may offer lower premiums to former smokers after a certain period, while others may not offer non-smoker rates for two years or more after quitting. For instance, Legal & General America allows applicants to apply for lower premiums after one year of quitting smoking, while some insurers may not offer non-smoker rates for an extended period.
It is important to note that life insurance companies evaluate all forms of tobacco use when determining an applicant's risk class and premium, and they may also consider the frequency and type of use. As a result, smokers can expect to pay significantly higher premiums than non-smokers due to the associated health risks and reduced life expectancy.
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Frequently asked questions
Life insurance companies base their policy terms and pricing on an individual's life expectancy and overall health. Since smoking is associated with a number of health risks and a decrease in life expectancy, smokers are considered high-risk to insure and are therefore charged higher premiums.
According to the Centers for Disease Control and Prevention (CDC), smoking leads to a host of serious health conditions, such as cancer, lung disease and diabetes. It is also the leading cause of preventable death in the US, contributing to nearly 480,000 deaths annually.
While cigarettes are the most obvious example, other forms of "nicotine delivery systems" can also be considered when assessing life insurance applications. This includes vaping, nicotine gum and patches, marijuana, cigars, and chewing tobacco.
Yes, you can get life insurance as a smoker, but it will likely be more expensive than if you were a non-smoker. Some insurers offer "preferred smoker" rates for those who smoke infrequently, and you may be able to negotiate a lower premium if you are in the process of quitting.
