Put Down That Smoke and Save on Your Insurance

Did you know that smokers can pay up to three times the life insurance premiums of nonsmokers? Needless to say, you can save yourself a lot of money on life insurance if you give up smoking. While the rates for car and medical insurance continue to rise, life insurance premiums have actually decreased by 50% in recent years. This trend means life insurance is more affordable than ever, at least for those who don’t smoke. By contrast, in the past year, life insurance premiums for smokers have actually risen. In this post, we’ll talk more about the relationship between smoking and life insurance rates.

Lifestyle Discrimination?

To some smokers, higher prices for life insurance policies may seem like lifestyle discrimination. However, higher life insurance premiums for smokers are more than warranted. The average smoker dies a staggering 25 years earlier than the average nonsmoker. Considering that life insurance rates are based on the policyholder’s statistical likelihood of death, it makes sense that smokers pay more for their policies. The high mortality rates among smokers are usually related to the laundry list of ailments that nicotine causes, including:

• Heart disease and stroke
• Chronic Obstructive Pulmonary Disease (COPD)
• Lung and other forms of cancer
• Peptic ulcers
• Alzheimer’s disease
• Cataracts
• Pneumonia

Who Qualifies as a Smoker?

According to most life insurers, you are not a nonsmoker until you’ve abstained from tobacco use for 12 months. Once you’ve done this, you can qualify for a standard rate. If you’ve been tobacco-free for three years, you might qualify for preferred rates. After five years of being smoke-free, you can qualify for preferred-plus rates, which are the best rates available. Your life insurance application will ask you about your tobacco usage. Even if you smoke only two or three cigarettes a year or enjoy a cigar from time to time, you are still considered a smoker. During your medical exam, you will be subjected to a urinalysis that will test for the presence of nicotine. If you smoke infrequently, you might be able to pass the urine test, but you should still be honest about your smoking.

The Risk of Lying

You might be tempted to abstain from smoking for a few days, pass your urine test, and lie about your smoking habits on your life insurance application. However, this is very risky. If you die and the insurance company investigates the claim, they could easily find out if your death was smoking related. If it was, your claim would be denied, and your beneficiaries would be left with nothing.

Additional Resources

• The Expenses of Smoking
• Term Life Insurance for Tobacco Users