Fact CheckedSmoking and life insurance – can I get coverage if I smoke? You sure can – but as you can guess, you won’t get the same rates as a non-smoker.
This is a common question, probably because health anxiety is prevalent among people who are looking for insurance.
I think a lot of it concerns the unknown nature of your physical well-being until you get the actual results back. Let’s face it: no one enjoys having blood drawn at the doctor’s office.
Almost all of us have that moment or two when we think – what if something is wrong?
The good news is, thankfully, that most of us are healthier than we think.
…but what if you smoke? Does that knock you out of the running for life insurance coverage altogether?
My Name is James Heidebrecht – I’m the Founder of Policy Architects, and I Enjoy the Occasional Cigar
Don’t get me wrong, I don’t partake often; it’s a celebratory sort of thing. My brother and I like to hang out on his front porch on the first warm day to celebrate spring with a cigar and a nice bottle of red wine…
I also had one when my son was born and when I got married. You get the trend. It’s a once-in-a-blue-moon sort of thing.
Did I tell my agent when I bought my policy? After all, I rarely smoke a cigar. Why risk it?
WRONG, of course, I told him! When applying for life insurance, transparency is critical.
But I bet you ask yourself if this disclosure impacted my application process. Not really.
He said, “no problem, most insurance companies will offer occasional cigar smokers, non-smoker rates.”
Smoking and Life Insurance: Can you Get Life Insurance If You Smoke?
If you are wondering – can I get life insurance if I smoke?
I have some good news for you. Yes, you can!
But there are some things you need to think about BEFORE you apply for life insurance as a smoker.
Remember, life insurance is all about assessing risky friends. When you answer your agent’s questions and take that medical exam, the life insurance company compiles that data and assigns you a “rating.”
A rating assigns you a risk category corresponding to your age. Your rating determines what you pay.
Underwriters are professionals who determine your rating. They consider your medical condition, that of your immediate family, lifestyle, and age to generate your monthly or annual premium.
“One of the more fulfilling parts of my job as a doctor is helping people to quit smoking.”
“Physicians have a front-row seat to the bodily harm tobacco smoking can cause. When I assess a patient who is a smoker, I do it through that lens.”
“I know that patient is at higher risk for developing lung disease, like COPD, and is more vulnerable to chest infections.
They are at higher risk for lung cancer — that’s the one that we are all familiar with when it comes to smoking — but also for cancers of the bladder, colon, mouth, sinuses, throat, kidneys, pancreas and others.”
Underwriters Notice Your Smoking Status
Yep! This is because smoking is known to reduce the number of years you are on this planet. To give you an idea of how harmful smoking is…
…the life expectancy of a smoker is an entire decade less than that of a smoker. OUCH!
This is the reason smokers pay a heck of a lot more for their habit if they want life insurance coverage. So, if you are following my blog and took note of the rates for a standard nonsmoking applicant, you CAN’T rely on them if you are a smoker.
What You Smoke & Why It Matters
Not all smoking is created equal. By this, I mean that underwriters look at smoking cigarettes differently than the occasional cigar.
Why? Because the effects on the body are different. So, let’s see how various products affect filling out your life insurance application.
Life Insurance & The Occasional Cigar
Well, I have excellent news for occasional cigar smokers!
Mostly, life insurance companies will not rate you as a smoker.
It’s all about quantity. If you smoke once per month and don’t test positive for cotinine in your medical exam, voila!
But please beware – some life insurance companies are far more lenient when it comes to smoking than others. This means speaking to an independent agent to select the right company for you is imperative.
So, for your purposes, One cigar per month or less translates into nonsmoking rates. By the way, those small Colt cigars or cigarillos don’t count as cigars, the insurance company views those products as cigarettes.
Life Insurance & Cigarettes
Sorry, guys and gals! If you smoke cigarettes, you get a smoking rate, period. There is no way around this, even if you are only an occasional smoker. If you use tobacco in any form, even if it’s mixed with cannabis, the insurance companies will look at you as a smoker.
This is because of the incredibly harmful impact smoking nicotine has on your health.
If you think I am exaggerating, take a look at this list:
- 50% increased chance of stroke
- COPD & Lung Cancer
- Doubles your chance of having a heart attack
- Risk of stomach cancer and ulcers
- Increased risk of osteoporosis
- Mouth & throat cancers
A terrific reason to start cessation treatments today!
Life Insurance & Marijuana
Life insurance and marijuana have been in the news a lot recently.
This is an exciting time for people who enjoy smoking a little pot. In October 2018, Canada legalized it, so we are in new waters.
Cannabis underwriting is still not 100% clear as companies lack data to make any broad changes, but as it stands, smoking marijuana is considered to be safer than cigarette smoking.
If you’re a casual marijuana smoker (less than a few times per week) you’ll likely qualify for standard non-smoker rates provided you don’t mix it with tobacco. YES! There are some companies that will underwrite you as a non-smoker even if you smoke cannabis almost daily.
Be sure to consult an independent life insurance agent about what the insurer you choose considers occasional use. Not all companies are created equal.
Life Insurance & Vaping
If I use E-cigarettes or vape, that’s not smoking.
Yep! Sorry to say, you absolutely will be rated as a smoker if you vape or use e-cigarettes. This is a changing area of life insurance.
There have been several people who have developed severe medical issues such as popcorn lung, so insurers may have to evaluate whether they want to cover this class altogether.
Smoking and Life Insurance: Non-Smoking Rates Are A Lot Less Expensive
30-Year-Old Female Smoker in Average Health:
This client wants $500K of coverage for 30 years. Wawanesa offers her premiums at $69.75 per month.
If that same client were a nonsmoker, she would have paid only $34.50 per month with RBC (they give her the best rates).
While those numbers may not seem wildly different over 30 years, the nonsmoker saves $12,690!
30-Year-Old Female Smoker in EXCELLENT Health:
Let’s see if health matters if you are a smoker. If that same smoking client came to see me in excellent shape, would she pay less?
Nope – not that much.
She still pays more than the nonsmoker at $60.30 with Wawanesa.
It’s evident how much emphasis underwriters place on our client’s smoking habits.
43-Year-Old Male Smoker in Average Health:
Okay, well, these rates don’t break the bank. Let’s look at a male client in his 40s who wants $500k of coverage for 30 years next. This gentleman is in average shape and gets a standard rating from RBC. His premiums are $283.78 per month.
If he didn’t smoke, his premiums with RBC would be $118.34.
Smoking costs this client almost $60,000 more over their term. WHOA!
So you can see how this can get out of hand, right?
If you are asking yourself, can I get life insurance if I smoke – the answer is SURE, but it’s going cost you a LOT MORE! Possibly even $ 10’s of thousands or more over your term.
Is it worth it?
Smoking and Life Insurance: There Are Some Solutions For Smokers
If you need life insurance and you’re a smoker, DON’T put off getting covered until you quit smoking. In my experience, this is never a good idea and may leave your family unprotected if a worst-case scenario unfolds.
Some of my clients who are planning to quit smoking will purchase a more affordable, 10-year term product rather than the 20-year term. Once they’ve been nicotine-free for more than 12 months, they’ll apply for the 20-year term as a non-smoker.
Then, start a smoking cessation plan. If you decide to quit, it’s important to communicate with your Doctor and make sure they have your progress recorded in you medical records. Once 12 months have elapsed, you sign a document declaring you no longer smoke to be reassessed for a lower rate.
The good part about this approach is you’re covered throughout.
Call Policy Architects Today If You’re a Smoker
Smoking and life insurance aren’t a marriage made in heaven, but you CAN still find a terrific policy. Just be prepared to spend more than a nonsmoker.
If you smoke, it’s even more important for you to work with an independent life insurance agent to find the best possible company for your needs.
I constantly stress that working with an independent agent saves you time, money, and hassle. As a smoker, this is even more important.
My best advice? Give up smoking if you can. It takes a toll on your health and will save you thousands on life insurance premiums.
One Response