Life Insurance for Smokers
If you’re a smoker in need of life insurance, it is important to know that each life insurance company has its own criteria for rating smokers. Some companies are no nonsense and will view all applicants who use any type of tobacco products as smokers, while others will be more lenient. In fact, some companies out there will allow the “occasional” tobacco user, non-smoker rates. Smokers will pay much more for life insurance than nonsmokers – usually 3 to 5 times more. The key to finding the best life insurance for smokers is to use an agent who knows which companies view smoking most favorably. Here’s what you need to know about life insurance for smokers.
Why Smokers Pay More for Life Insurance
It should be obvious that smokers present a much higher risk when it comes to life insurance than nonsmokers. The main reason is that life expectancy for smokers is at least 10 years shorter than that of non-smokers, according to the Surgeon General. In fact, smoking is the leading preventable cause of death in the United States, according to the Centers for Disease Control and Prevention (CDC). Smoking causes cardiovascular disease, stroke, lung disease and many cancers that could otherwise be prevented by not smoking.
How Much Will a Smoker Pay for Life Insurance?
To give you an example of the actual difference between smoker and non-smoker rates, let’s look at a 40 year old male applicant who is applying for a 30 year term policy for $500,000 of coverage. If he qualifies for the best smoker rating, he could expect to pay about $216 per month for coverage. If he qualifies for the best non-smoker rating, he could expect to pay about $54 per month.
Smoker Rates Aren’t Just for Cigarette Smokers
Classifying smokers can be a bit confusing when it comes to life insurance. When most people think of smokers, they think of cigarette smokers. But you should know that most life insurance companies view pipe, cigar, chew and even e-cigarette users as smokers. Many companies out there even consider those who use nicotine gum or nicotine patches as smokers. For most companies, you will be considered a smoker if you’ve used any tobacco products in the last 12 months.
Underwriting Life Insurance for Smokers
If you use tobacco somewhat consistently, you should be prepared to pay smoker rates. Some smokers might think that a few cigarettes a day doesn’t make them a smoker, but it does in the eyes of the insurance company. With that said, smokers who are generally healthy fall into two main health rating categories, ‘preferred smoker’ or ‘standard Smoker’. Any major health issues will mean substandard or table ratings on top of the already higher smoker rates.
What if You Lie About Tobacco Use on Your Application?
As always, it is important to be truthful on your application. Hiding the fact that you use tobacco products could lead to issues if you test positive for cotinine on your paramedical exam. Not only that, but a life insurance company could also contest your claim if they found out you lied on your application.
Tobacco Users Who Aren’t Considered Smokers
As mentioned previously, every insurance company uses its own criteria for rating tobacco users. Some companies will be a little more liberal for pipe, chew and cigar users than others. For instance, Prudential may offer ‘standard plus’ nonsmoker rates to cigar, pipe and smokeless tobacco users as well as nicotine patch or Nicorette Gum users. Other companies, such as United of Omaha, Transamerica, John Hancock and Banner Life will offer ‘preferred’ non-smoker rates for those who indulge in the “occasional” celebratory cigar if they test negative for cotinine on their paramedical exam. These companies usually define “occasional” as one cigar per month. There is one company out there that will even offer ‘preferred’ non-smoker rates for those who use tobacco 12-24 times per year, including cigarettes, with negative cotinine test. Using an independent agent who knows these facts will ultimately help you find the best coverage for your situation.
Life Insurance if You’ve Quit Smoking
If you’ve quit smoking, you have a couple of options. You can reapply with a new insurance company at nonsmoker rates or ask your current insurer for a rate review. Companies will differ on the best nonsmoker rates they are willing to offer based on the length of time you’ve refrained from tobacco use. For instance, some companies will only offer ‘preferred best’ non-smoker rates if you haven’t had tobacco for at least 5 years, while others will only require that you be tobacco free for 3 years to qualify for ‘preferred best’ non-smoker rates. Some companies out there will offer ‘preferred’ non-smoker rates if you’ve refrained from using tobacco for only 2 years. You will most likely have to prove that you have quit which can usually be verified by your doctor. You usually have to be tobacco free for at least one year before you can qualify for ‘standard’ non-smoker rates in most cases. The good news is that even ‘standard’ non-smoker rates could save you thousands a year on coverage compared to ‘Standard’ smoker rates. Using an independent agent who knows the guidelines for each company will allow you to maximize savings.
Shopping for the Best Smoker Rates for Life Insurance
If you use tobacco and need life insurance, you should use an independent agent that has the ability to shop your case to multiple insurers. Some companies have carved out a niche for underwriting tobacco users, while many other companies simply price themselves out of the market because they don’t want to take on the added risk of insuring a tobacco user. Choosing the wrong company could cost you tens of thousands of dollars over the course of a 20 year term policy. We can help you find the best rate for life insurance if you use tobacco products. If you have any questions about life insurance for smokers, please feel free to call us at 888-687-9444 or email us at info@archstoneagency.com.
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.
