Many people who smoke believe it is impossible to find affordable life insurance for smokers. If you take just a few minutes and read this article, you will be ready to secure the best smoker life insurance rates.
We often get the question of, “Why are my life insurance rates so much higher than my friends?” from smokers who are not familiar with the life insurance rating process. Here is a quick explanation:
When a life insurance company puts together rates for a person they not only look at the persons current health but also factors that may hurt their future health. So a person that is in good health, young, and does not participate in any risky activities or habits will have lower rates than someone who does. Since smoking has proven to contribute to lung cancer and other disease the life insurance will place a smoker into a smokers life insurance category instead of standard rates to make sure they are protected from the added risk.
This means that the rates on life insurance for smokers can be as much as double that for non-smokers with all other risk factors being the same. This does not mean you cannot find affordable smokers life insurance. In fact, if you are working with the right life insurance agent and getting quotes from the most favorable providers, you can find very affordable rates, even if you are a consistent tobacco user.
Getting a policy from the best insurance company for your individual smoking risk depends on several factors.
Many consumers will get rated for smokers life insurance even though they quit smoking recently. While all the life insurance companies will give you a smoker rate if it has been only a short period of time, several companies will move you to a non-smoker rate if it has been more than one year and some have moved to a graded rating, which means they decrease your rate gradually based off of how long it has been since you quit smoking. Working with an independent agent who specializes on smoker life insurance can help you avoid the companies that make you wait two years before qualifying for non-smoker life insurance.
If you are a smokeless tobacco user (chewing, snuff, etc.) you can get rid of the smoker label and qualify for lower rates RIGHT NOW. The same goes for cigar smokers but you have to use the right company.
Getting the most affordable life insurance for smokers depends on your personal smoking risk. If anyone tells you that one company is the “Best” life insurance company for smokers they are misleading you. You can learn more about who we think are some of the best life insurance companies HERE.
So knowing your personal smoking risk and finding the right company to match that risk are two keys to getting the best smoker life insurance rates. Another factor is the type of life insurance you choose to purchase.
For anyone looking to get life insurance the cheapest form of life insurance is term life insurance. This is because it is very simple life insurance. You pay a premium and get a set number of dollars in coverage. There are no investments or cash value to factor in. So term life insurance for smokers will get you the best rates.
The final factor in getting affordable life insurance for smokers is your health and lifestyle apart from smoking. This is where having an otherwise healthy lifestyle will pay off. Keeping your weight down and your health good will really pay off. Also, working with an independent agent who will point you to the best company that rates for your life style will make this even better.
Now that you have a grasp on how to get the lowest rates on smokers life insurance here are some of the most common questions we get.
In the short term no, you will not get lower rates just for quitting. However, if you can stay smoke free for at least one year there are some companies that will drop the smoker designation from your application. If you are smoke free for two or more years then you no longer get rated as a smoker by any of the companies.
Being a cigar smoker does not necessarily mean you will get rated as a smoker/tobacco user by the underwriters. This hinges on how often you smoke cigars. A person who has a cigar a few times a year for celebrations can get rated as a non-smoker. Someone who smokes one once a week to relax will probably get smokers rates. If you are looking for a benchmark, companies will consider someone who smokes 12 or less cigars a year to be an “occasional” cigar smoker.
This is a terrible idea. Filling out an application and providing incorrect information is considered insurance fraud. Insurance companies are great as sniffing out fraud and have very good systems to make sure you do not defraud them. If you were to pass away and the company could prove you committed fraud when submitting the application they could refuse to pay out the policy to your loved ones. Typically they will only pay back the premiums that you had been paying. So don’t lie because it will defeat the whole reason you purchased the policy.
The insurance industry as a whole is always slow to accept new things. The good news is that some companies are now accepting people who “vape” as non-smokers. You will still have to be smoke free for one year but you can use e-cigarettes and get away from the smokers rates for life insurance.
If you are in very good health you can get what is called “preferred smoker” rates. If your health has improved then it is worth the time of getting a new set of quotes to see if you can move up from the “standard smoker” rate.
YES! A smoker will pay 20-30% more for whole life insurance and 100-300% more for term life insurance. If you are looking to get the lowest rates your best bet is to quit smoking.
We hear this question a lot. Somehow Transamerica has gotten themselves labeled as the company for smokers life insurance. The truth is that there is no one best company. You can only be certain that you are getting the best rates by getting quotes from all the companies that rate smokers favorably.
At Taik Insurance Associates our team of agents understands that getting affordable life insurance for tobacco users and specifically for smokers can be difficult and we have extensive training in working with the life insurance companies to get you the absolute best rates. To get started use the form on this page or call us to get started on getting your smokers life insurance.