Regardless of the insurance company, the unpleasant truth is that life insurance for smokers comes with a higher monthly premium, no matter which package, cover, deal or policy you choose. But that doesn’t mean that there isn’t comprehensive and cheap life insurance for smokers out there, you just have to be prepared to look for it.
Why Life Insurance for Smokers is More Expensive
Simply put, smoking is bad for your health. By smoking or using tobacco products, you greatly increase your chance of serious illness such as lung cancer. This puts you into a high risk category, which means you’re likely to cost the insurer more money, hence expensive life insurance for smokers. The reality is that smokers have a much higher mortality rate than non-smokers, and that the only guaranteed way to reduce your monthly premiums is to stop smoking permanently. If you do kick the habit, make sure your insurer knows to reduce your premium accordingly.
How Insurance Companies Define ‘Smoker’
The cost of life insurance for smokers depends on how the company defines ‘smoker.’ This definition depends on the use of cigarettes, cigars, chewing tobacco and even nicotine patches or gum. Although it may strange, before granting life insurance for smokers, companies want to know about all nicotine usage. One of the most common questions on insurance forms is “Have you used a tobacco product in the last 12 months?” Answering yes, might classify you as a smoker since companies don’t discriminate between social and pack-a-day smokers.
Additional Criteria for Defining Smokers
Pack-a-day smokers are prone to even higher insurance premiums as their tobacco habit may result in additional health complications such as high blood pressure, which could push your monthly premium costs up as well. The only time you may not be classified as a smoker is if you are an occasional cigar smoker using the product only a few times a year, but this is highly dependent on the individual insurance company and the way they choose to define ‘smoker.’ Be aware that smoking marijuana could also result in you being classified as a smoker.
Don’t Lie About Smoking
Lying on an insurance form about being a smoker is fraud and an insurance company will take this dishonesty very seriously. Should you die and it is discovered you were in fact a regular smoker, then the insurance company may not pay-out the claim, leaving your family with a serious financial problem. The best option is to be honest about your smoking habits, and accept the fact that life insurance for smokers will be a more expensive.
Cheaper Life Insurance for Smokers
You need to shop around. Consider working with an agent who specialises in life insurance for smokers. They will definitely be able to help you find the best deals. While some companies may be reluctant to grant smokers life insurance, there are just as many companies out there that understand the need of life insurance for smokers as well. Here are a few ways to help reduce the monthly premiums of a smoker’s life insurance:
Kick the habit – the most obvious step towards a healthier life and cheaper life insurance premiums. Be aware that companies may require proof that you haven’t smoked within the last 12 months. Life insurance for smokers can be cut in half by quitting.
Reduce your daily intake – reducing the number of cigarettes you smoke can have a positive impact on your insurance premium and may even make you eligible for additional policies for life insurance for smokers. If you’ve reduced your daily intake, be sure to discuss your options with your insurance provider.
Don’t chew tobacco or smoke marijuana – even chewing tobacco or smoking a non-tobacco product may still result in you having to pay premiums associated with life insurance for smokers.
Avoid nicotine – depending on the underwriting criteria employed by the insurance provider, even using nicotine patches or chewing nicotine gum may result in you being classified as a smoker when looking at life insurance for smokers.
Why You Should Quit Smoking
Smoking cigarettes can be disastrous for your health resulting in premature death. Besides the numerous health benefits from not smoking, you can also save up to 50% on your monthly life insurance premiums. This translates into huge savings on insurance policies. According to Moneysupermarket, a smoker who quits could save almost £7000 on combined critical illness and life cover. Cheaper life insurance for smokers who have quit as well as removing the cost of cigarettes from the budget are two great financial reasons for quitting smoking.
There is affordable life insurance for smokers out there if you’re willing to shop around and compare quotes, but remember the healthier your lifestyle, the cheaper your monthly insurance premium.