Life Insurance for Smokeless Tobacco, Vape, Pipe and e-Cigarette Users
If you didn’t already know it, life insurance coverage for tobacco users costs much more than coverage for those who do not use tobacco. In most cases, it will be more than double the cost. But how do life insurance companies define “tobacco use”. Most of the companies out there are very strict when it comes to underwriting applicants who use tobacco. They only offer smoker rates for applicants who use ANY kind of tobacco. The good news is that there are a handful of life insurance companies out there that will allow non-smoker rates for those who use smokeless tobacco, pipes, vapes and e-cigarettes. Here is what you need to know about life insurance for smokeless tobacco, pipe, vape and e-cigarette users.
Why do Tobacco Users Pay More for Life Insurance?
This seems like a pretty easy question to answer, but there are some tobacco users out there who have no health issues whatsoever. Why shouldn’t they qualify for the lowest rates? The fact is that cigarette smoking can increase the risk for cancers, heart disease and lung disease. According to the U.S. Department of Health and Human Services, cigarette smoking causes more than 480,000 deaths each year in the United States. This is nearly one in five deaths. Smokeless tobacco, like chewing tobacco and snuff, can increase the risk for certain cancers as well as heart disease, gum disease and bone loss. Since tobacco users of any kind are at higher risk for diseases than those who do not use tobacco, they can expect to pay higher rates with almost every life insurance company. Even if you don’t have any current health issues due to smoking or tobacco use, you are at a greater risk of developing health issues in the future. The good news is that there are certain companies that are more lenient when it comes to defining tobacco use.
Am I a Considered a Tobacco User by the Life Insurance Company?
With most companies, smoker rates will apply to applicants who use ANY type of tobacco. It doesn’t matter whether it is chewing tobacco, e-cigarettes, pipes or snuff. These companies simply choose to view all types of tobacco as high risk and the cost of premiums can be considerable. It should be noted that some life insurance companies will be a bit more lenient with cigar smokers and offer non-smoker rates as long as it is limited to one or two cigars per month and usage is disclosed on your application.
The good news is that there is a small handful of companies out there that will rate any form of tobacco use, with the exception of traditional cigarettes, at non-smoker rates. Finding the right company could save you thousands each year and tens of thousands over a 20 or 30 year policy.
What’s the Difference in Cost Between a Smoker and Non-Smoker Rate?
The cost of smoker versus non-smoker rates is considerable. That is why it is important to use the right insurance company that will view you as a non-smoker even if you use other types of tobacco products. Here is an example of the difference between smoker vs non-smoker rates. The annual rates are for a 40 year old male for ‘Preferred Smoker’ and ‘Standard Plus Non-Smoker’ rates.
| Coverage Amount | Non-Smoker Plus | Preferred Tobacco | Difference in Cost |
|---|---|---|---|
| $250,000 | $422.50 | $865 | $442.50 |
| $500,000 | $760 | $1,645 | $885 |
| $1,000,000 | $1,385 | $3,205 | $1820 |
As you can see, the difference in annual cost is more than double for every coverage amount quoted. This savings can be quite substantial when added up over the course of a 20 year policy.
Shopping for the Right Company
If you use smokeless tobacco, vapes or e-cigarettes and you need life insurance, it is in your best interest to shop your policy with an independent agency like ours. If you choose the wrong company and pay smoker rates, you could end up spending thousands more than necessary. There are only a few companies that make certain exceptions when it comes to tobacco use. Some of the companies out there will make the following concessions for tobacco users:
One leading insurer will offer non-tobacco rates for those who use chewing tobacco, e-cigarettes, snuff, nicotine gum, vapes, cigars and marijuana. This is assuming you haven’t smoked cigarettes in the past year.
Another leading company, as an exception, could allow its best rating for 12 or fewer tobacco uses per year, including cigarettes, as long as you don’t test positive for nicotine. You could also qualify for preferred rates from this company if you have 12 – 24 cumulative tobacco uses per year, including cigarettes, and you test negative for nicotine. You must disclose your usage on your application.
One other leading company will offer ‘Standard Non-Smoker’ rates for those who use pipes, cigars, chewing tobacco, nicotine gums, or nicotine patches and who have not smoked cigarettes in the last 12 months as long as it is disclosed on the application.
Most companies out there will allow you to qualify for their best health ratings if you have one celebratory cigar per month. You must disclose it in your application and test negative for cotinine during underwriting.
Make sure that you disclose your tobacco use on your application no matter what type of tobacco you use. The underwriting process for life insurance is very thorough. In most cases, your tobacco use will be detected and will most likely be given a smoker rating if not disclosed.
Life Insurance for Smokeless Tobacco, Vape and e-Cigarette Users
We have access to over 40 of the best life insurance companies out there. We can find you the best rate based on your tobacco usage. We know which companies are the most lenient when it comes to rating tobacco users. If you use tobacco and you need life insurance, give us a call at 888-687-9444 or email us at info@archstoneagency.com and we will be happy to show you your options.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
