The Cost of Smoking Cigarettes
Cigarette smoking has been shown to cause a number of health problems, many of which are fatal. Aside from being linked to cancer, chronic respiratory problems like emphysema and heart conditions, it has been suggested by researchers that cigarette smoking can reduce the life expectancy of a smoker by up to 25 years. While some other health factors may contribute to this, you can see why it might make life insurance providers see smokers as a very big risk.
It's a fact that those who present a greater risk of premature death pay more for life insurance than those who are considered lower risk and expected to live a longer life.
Some reports have suggested that for those smoking a pack a day or more, life insurance rates can be as much as triple those of nonsmokers. An MSNBC Study titled The High Cost of Smoking examines costs associated with smoking, including health, home and life insurance. For data on life insurance, they indicate that they went online and got quotes from some 20 different insurers and input information for a $500,000 life insurance policy as both non-smokers and smokers. The cheapest quote they found for a non-smoker was $1,140 per year.
However, for the smoker the news was much more grim - the cheapest policy they could find started at $2,571 per year, which is more than double the cost for the same policy annually. Again, this is because the smoker is seen as a greater risk than the non smoker. MSNBC did not publish the other criteria they provided for the quote, but one can assume they indicated no health problems for the smoker or the non-smoker. In a situation where an actual quote is being worked up, the figures could be even higher for the smoker if they have already started developing any of the health issues associated with smoking.
If you are already a smoker, quitting may help reduce your rates, though you may have to quit for a certain period before insurance companies are willing to reduce premiums on your life insurance. Also, you may never reach the lower rates that those who never took up smoking are getting; this can vary among providers.
Given the added expense, it may be tempting to simply lie to the insurer and tell them that you don't smoke. Understand however, that an insurance policy is a legal contract and there can be penalties for providing fraudulent information. The insurance company could simply convert your policy if they find out, or pursue other action. In the event that upon your death they discover you lied about being a smoker, they may be entitled to deny any claims your family files. Don't make one of the more common mistakes insurance companies run across. Ultimately it is better for your health, longevity and insurance premiums to find a cessation method that will help you quit smoking.