Life insurance for smokers | Life insurance companies use factors such as your health, occupation, age, and lifestyle to determine your premiums. You will likely pay more for life insurance if you smoke, vape, or use marijuana.
Although life insurance for smokers can be expensive, many smokers feel the cost is worth it in order to provide financial protection for their loved ones in case of an unexpected death.
MoneyGeek compared thousands of life insurance companies to find the best policy for smokers. We also looked at their pricing, financial strength, and customer ratings.
- What are the best policies for smokers?
- How can smokers save money on life insurance?
- How long do you need to quit smoking?
- Do You Need to Wait to Purchase a Policy If You Are Quitting?
- What’s a life insurance policy that covers smokers?
- Are you required to inform a life insurance company about your smoking habits?
- What is the cost of life insurance for smokers?
- Why are policies for smokers more expensive?
- What amount of life insurance should you purchase if you smoke?
- Methodology
What are the best policies for smokers?
The life insurance rates can vary based on age, company, and your health. Smokers pay three times more for life insurance than non-smokers. The table below shows the different coverage options available from top life insurance companies. It highlights the price ranges that smokers can expect to pay.
As you can see the higher your life insurance policy will cost, the more coverage you select. Even if you smoke, you can get the best rate and policy on life insurance.
How can smokers save money on life insurance?
Although life insurance can be more expensive for smokers than for non-smokers, it doesn’t mean that you won’t be able to save money on your life insurance. These are some ways you can save money when applying for life insurance.
1. Stop Smoking
One of the best ways you can save money on your life insurance is to quit smoking. The life insurance company will determine the length of time that you must quit smoking before you are eligible for non-tobacco rates. However, it is usually at least one year.
2. Bundle insurance policies
You may be eligible for a bundle discount if you purchase life insurance that includes auto and home coverage.
3. Get Group Life Insurance
Group rates are available if your employer offers life insurance. Group life insurance offers a fixed rate for a certain coverage amount and an age, and does not consider smoking.
How long do you need to quit smoking?
Non-tobacco rates are available to those who quit smoking for at least one year. Transamerica requires that you quit smoking for at least one year before you can be considered a nonsmoker.
To have your life insurance rate reconsidered, you must first get approval from the company. You will also need to undergo a medical exam to prove that you are not a smoker. The medical exam may cost you extra.
Do You Need to Wait to Purchase a Policy If You Are Quitting?
You should not wait to purchase life insurance if you don’t already have it. Your beneficiary would not receive the death benefit if you die while waiting to be deemed a nonsmoker.
A few life insurance companies, including Prudential and Transamerica, Mutual of Omaha, AIG, offer rate reconsideration. This allows you to prove that you are not a smoker by taking a medical exam later.
If your life insurance company does not offer rate reconsideration, you may apply for a new policy if you are a non-smoker. You can cancel your policy if you don’t need it anymore or if the cost is too high.
COMPARE LIFE INSURED RATES
You can ensure that you are getting the best rates for your life insurance. Compare rates from the top providers to get the best life insurance coverage.
What’s a life insurance policy that covers smokers?
Smoking can reduce your life expectancy and cause health problems. Life insurance companies charge more for smokers than for non-smokers. Your age, occupation, lifestyle, hobbies and health are all factors that could impact your life insurance price.
You pay twice as much for life insurance coverage if you smoke than a non-smoker.
Are you required to inform a life insurance company about your smoking habits?
Yes, life insurance companies will require you to disclose that you smoke. You can be denied coverage if you lie about your smoking habits on the application.
The insurance company will have two years to verify the accuracy of your application after your life insurance policy has been approved and issued. This is known as a contestability clause. This clause is used to deny coverage or cancel your insurance policy if you are found to have lied on the application.
Even if the contestability clause is not invoked, it could be changed if you die. If you are a smoker and die due to a smoking-related disease, your beneficiary could be denied coverage or reduced death benefits. This is because the policy has been in force while the premiums were higher.
What is the cost of life insurance for smokers?
Smokers can get life insurance policies that are affordable, depending on their smoking habits. How much life insurance you purchase will depend on your age, health, driving record, and hobbies.
MoneyGeek has provided sample quotes that show the cost range of life insurance. A $250,000 life insurance policy from Prudential costs about $126 per monthly, while the same policy with Transamerica would cost around $70.
Consider getting multiple quotes to Compare life insurance options and rates to get the best term insurance rates for smokers.
Why are policies for smokers more expensive?
Smokers are more expensive because they have a shorter life expectancy and can lead to many health problems. Your mortality risk is the probability that you will die before your policy ends.
Life insurance rates will increase based on the likelihood that you’ll die sooner based upon your lifestyle and health. The company expects to pay the death benefit sooner.
What amount of life insurance should you purchase if you smoke?
The amount of life insurance that you should purchase if you’re a smoker will be the same as what a non-smoker should get. To determine the amount of life insurance you should buy, consider your goals for life insurance.
Methodology
MoneyGeek’s life insurance content is backed by our commitment to quality. Our life insurance ranking for smokers includes a large number of data points from both insurance industry research companies as well as our unique research. This includes real policy quotes for smokers, and analysis of details about smoker classifications.
Five J.D. We also included five J.D. Our overall rating weights were as follows:
- Cost & Affordability: 40%
- Product Offerings: 20%
- Financial Stability: 10%
- Customer Service & Communications: 20 %
We made the conscious decision not to give financial stability scores from AM Best a lower weight. Each company is ranked A or higher with the majority of them in the A++ or A+ category.
We did qualitative research to determine which company offers a product in each category. Then we chose the winner based upon the company’s affordability score and overall rating.
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