Premiums are the costs you pay to the insurance company to keep your policy active.
They are calculated based on factors such as:
Consistent premium payments ensure that the policy remains active and the coverage continues. It guarantees that beneficiaries receive the death benefit when the policyholder passes away.
Smoking poses numerous health risks:
- weakens the immune system, increasing susceptibility to infections
- damages the respiratory system (that brings reduced lung function and chronic bronchitis)
- impacts blood vessels, elevating the risk of stroke and peripheral artery disease
- increases the likelihood of developing lung cancer, heart disease, and COPD (chronic obstructive pulmonary disease).
Long-term smoking can reduce quality of life, drive up healthcare costs, and shorten life expectancy.
For traditional life insurance, smoking is classified based on the type of tobacco product used. This helps to assess potential health risks more precisely and determine premium rates more accurately. Simplified life insurance operates with a general 'smoking' determination only, which makes the calculating process easier.
The main types of tobacco use considered by insurers include:
Regular or occasional use of cigarettes is the most common form of tobacco use. It poses high health risks and leads to higher premiums.
While less frequent than cigarette smoking, regular cigar use is still considered a risk factor. But occasional use might be treated differently by some insurers.
Similar to cigars, pipe smoking is evaluated based on frequency and regularity. Regular users face higher premiums.
Also known as smokeless tobacco, this form of use is associated with different health risks, particularly oral cancers. It impacts premium rates, too.
Nicotine patches, gums, or e-cigarettes could all be labeled as 'tobacco use' by some insurers. This depends on the company's policies, so it's better to clarify this from the start.
Some insurers may have different classifications for occasional or social tobacco use, potentially offering slightly lower premiums than for regular users. You can ask about it when applying for a quote.
To verify smoking status, a traditional life insurance application can include medical exams and nicotine tests. When applying for no medical life insurance, you only need to honestly answer a health questionnaire.
❕ Being honest about your health status and risk factors ensures that premiums are calculated accurately. That prevents potential issues in the future.
If you hide your smoking habits from a life insurance advisor, you may face:
▪️ Policy cancellation
The insurer may cancel your policy if the lie is discovered, leaving you without coverage.
▪️ Claim denial
If you die and the insurer finds out you lied about smoking, the death benefit may be denied. Your beneficiaries will be left with no financial protection.
▪️ Higher premiums
If the lie is caught during a routine review, you may be reclassified as a smoker. That results in higher premiums.
▪️ Legal issues
Lying on an application can be considered fraud, potentially leading to legal consequences.
▪️ Loss of trust
Misrepresentation damages your credibility. You can be denied any insurance coverage in the future.
The good news is that by staying smoke-free for a specific period, you can change your smoker status and request to review your rate. Being classified as a non-smoker usually results in significantly lower life insurance premiums.
To be considered a non-smoker, you are typically required not to use tobacco products for at least 12 months. Some insurers might have longer requirements for reclassification — 18 to 24 months. The exact time frame can vary between insurance companies and policies.
And let’s not forget another benefit: improving your health.
Quitting smoking improves health by reducing the risk of lung cancer, heart disease, and respiratory issues. It enhances lung function, increases life expectancy, and boosts energy levels.
The health improvements from being a non-smoker are so significant that the risk of illness decreases. This is why life insurance premiums are lower for non-smokers. Insurance companies just follow research and statistical data.
Overall, quitting smoking leads to better health and financial savings on insurance costs.
Don't want to quit smoking and still are looking for lower life insurance premiums? Consider no medical term life insurance.
It can provide you with:
- Lower initial cost.
Term policies typically offer lower premiums, which makes them one of the most affordable solutions on the insurance market.
- No medical exams.
You don't need to undergo any lab tests or visit a doctor. There will be only a health questionnaire to go through over the phone.
- Fixed premiums.
Premiums are fixed for the whole term, providing predictable costs even if health worsens.
- Flexible coverage period.
You can choose a term duration that matches your needs — typically, from 10, 20, or 30 years of coverage. Calculate the amount you need until your children are grown or your mortgage is paid off.
- Opportunity to quit.
If you quit smoking and remain tobacco-free for a specified period, next time you might qualify for lower rates. After the policy term ends, there will be an option to renew your policy or to purchase a new one, if needed — that's the time to get a better price.
We believe that after reading this article, you will be ready to plan better for your financial and health future. And maybe, consider quitting to lower premiums over time.
If you still have any questions about life insurance for smokers, contact our licensed advisors here. Remember the importance of honesty in applications to avoid policy issues.
