When a life insurance company decides to insure you, they have to make sure that decision is a profitable transaction for them. So in order for them to do this it means high risk cases, i.e. smokers, will be paying about 56% more than someone who doesn’t use any form of tobacco.
If you smoke it may come across as unfair that you have to pay a higher life insurance premium when compared to someone who doesn’t. It can often come across as a punishment for smoking. Insurance companies are however well within their rights to charge more for a smoker than a non-smoker. The reason for this comes with the fact that someone who frequently uses tobacco is considered to have a shorter life expectancy than someone who doesn’t.
Research has concluded that women lose about 13 years of their lives and men lose roughly 14 when they smoke on a regular basis. On top of this you are considered to miss work more due to respiratory illness and staying on the topic of illness; you are more likely to contract serious illness such as lung disease, heart disease and emphysema. Because of these facts insurance companies push the price of premiums up as you are more likely to make a claim earlier than someone who doesn’t use cigarettes. However it is not just cigarettes that will push the price of your premium up. Nicotine-based substances and products that are used on a regular basis are also treated in the same was as cigarettes. The use of cigars, nicotine gum/nicotine patches and pipes all make you an insurance risk.
Due to the increased premiums and the fact the economy has seen better days; many people are now turning to help to quit smoking in order to bring their premiums down. This is a wise idea as long as you keep in mind the fact that insurers will generally only offer non-smoker rates for people who have quit for at least one or two years.
Trying to quit smoking before taking out a life insurance policy is generally advised if you also fall into other categories that will send your insurance premium sky high, aspects such as if you are overweight will mean you end up paying more as will if you are older. The older you are will mean the more your premium will cost you, so this combined with the fact you are a smoker will make it hard for you to find a policy that you can afford.
Life Insurance policies for people who regularly use tobacco aren’t high as a means to make you quit, insurance companies are simply covering themselves as you would be a high risk policy holder.
It doesn’t matter what type of insurance policy you take out, whether it is a term or whole policy as well as a no medical policy; you will still end up paying more if you smoke. There is however a slight glimmer of hope, which comes in the fact there are certain insurance companies who are a bit more lenient to smokers and thus will offer you cheaper rates so make sure you shop around and don’t go with the first policy you come across.
Remember the fact you smoke doesn’t mean you are uninsurable and just like non-smokers you will find expensive and relatively reasonable policies, you just have to shop around.