- Smokers pay double for life insurance compared to non-smokers.
- Many life insurance companies treat tobacco and cannabis use differently.
- Annual renewal term life insurance may be appealing to smokers in the process of quitting.
- Compare life insurance online in minutes with Everyday Life Insurance.
According to the U.S. Surgeon General, "16 million Americans are living with a smoking-related disease." It goes on to state that "...smoking-attributable healthcare spending exceeds $170 billion per year."
The negative effects of nicotine on health are well documented. So, insurance companies assign higher risk classifications to those who smoke or use other nicotine products. If you're a smoker, expect higher rates on your policy than a non-smoker.
Smokers qualify for life insurance
Smokers can still get life insurance. However, since nicotine negatively affects health and shortens life expectancy, those who smoke pose a higher financial risk to life insurance providers. If you smoke, it may be more challenging to find a company that'll offer you coverage, much less at lower rates.
Expect to pay higher premiums
Insurance premiums are higher for smokers, especially if you're older or have pre-existing health conditions. Rates for smokers also vary by life insurance company and on the type of tobacco use (i.e., smoking, chewing, or vaping). Insurers also take your length and duration of use into account, according to Jackie Morales, former chief insurance officer at Bestow Life.
Honesty is essential
Life insurance companies ask nicotine-related questions during the initial quote process. Morales mentions it's best to give information applicable to your current situation. If you stop smoking in the future, you can request a reevaluation of your risk profile for non-smoking rates.
Morales noted that marijuana questions are asked separately. She noted that ten years ago, marijuana would have prevented coverage, but now, most life insurance companies accept cannabis users. However, Morales recommends giving accurate information on your usage, medical or recreational.
It's important to be truthful when answering these questions during the underwriting process. Insurers can typically verify your smoking status through medical exams. If you misrepresent information and you pass away, your death benefit can be denied to your beneficiary for failing to disclose the extent of your smoking habit.
Types of life insurance for smokers
Term life insurance
Term life insurance covers a set time period only, usually 10 to 30 years. If you die during that period, your beneficiaries get your death benefit. Term life insurance may appeal to most people due to its competitive pricing, even for smokers.
Mark Williams, CEO of Brokers International, states that if you are in the process of quitting smoking, consider annual renewal term life insurance. This policy offers coverage one year at a time.
Annual renewable insurance may be the cheaper option until you qualify for non-smoker rates on traditional term life insurance. Although your premium may increase yearly based on age, you won't have to take a medical exam every time you renew.
Read our guide on the best term life insurance here.
Whole life insurance
Consider whole life insurance if you want lifelong coverage with a savings or cash value component. A whole life policy could be useful if you have long-term dependents, but Its premiums are significantly higher than term life insurance, especially for smokers.
You can find our guide on the best whole life insurance here.
No medical exam life insurance
People with certain pre-existing health conditions may be ineligible for traditional life insurance. A no medical exam life insurance policy offers options for those who need coverage but have difficulty passing a medical exam. There are two types of no medical exam life insurance for smokers.
- Simplified issue life insurance: This insurance requires a health questionnaire but no medical exam. It's beneficial for those with mild to moderate health conditions such as anxiety, depression, or asthma.
- Guaranteed issue life insurance: This policy doesn't require a health questionnaire or medical exam. It's best for those with severe health conditions such as terminal or chronic illnesses.
These policies tend to come with higher premiums for lower coverage limits than traditional life insurance. A simplified issue tends to cost less than a guaranteed issue because it has more requirements.
You can find our guide on the best no medical exam life insurance here.
Improving your chances of approval
Demonstrate healthy habits
If you're a smoker, it's even more crucial to engage in healthy habits that offset your risk. Some examples include regular exercise, a balanced diet, and other preventative measures. You'll want to highlight those habits in your health questionnaire.
It may also help to demonstrate that you're taking steps to curb smoking. For example, providing proof of participation in counseling, medication, and support groups can increase your chances of coverage approvals and lower rates.
Consider quitting
Quitting smoking can lower your risk classification and, therefore, your life insurance premiums. According to Policygenius, most insurers require you to be nicotine-free for at least a year to qualify for non-smoker rates. Be aware that you may have to undergo the underwriting process again to have your premiums reevaluated.
How to find life insurance if you're a smoker
An effective way to find the best life insurance companies for smokers is to shop around and gather quotes from multiple companies. A qualified life insurance agent can also help you find questions and help you make informed decisions about your life insurance options.
Life insurance for smokers FAQs
Vaping, chewing tobacco, and other nicotine products can still impact rates, often treated similarly to smoking. Be sure to inform your insurer of the different types of tobacco products you use to ensure your beneficiaries won't encounter issues when filing a life insurance claim.
If you quit smoking for at least a year, insurers typically reclassify your risk profile to non-smoker status. This can significantly reduce your insurance rates.
If you smoke and have other health issues, insurance companies may see you as too risky to insure. However, many insurers still provide coverage for smokers, but you will pay higher rates.
The best way to find smoker-friendly insurers is by working with an insurance agent. An agent can identify companies that offer favorable terms and rates for smokers and provide personalized advice for your situation.
There aren't special policies specifically designed for smokers. However, some insurers may have more lenient underwriting criteria, which allows smokers to qualify for better rates and coverage options. No-medical exam policies also allow smokers with other health conditions to qualify for life insurance.
