If you smoke, it is still possible to get life insurance with the death benefits you desire. But you will need to be prepared to pay much more for your policy than a non-smoker. Depending on how much you smoke and what method you use, your insurance provider and policy will vary. Some companies offer lower rates for policyholders who only smoke occasionally and different rates for those who do not specifically smoke tobacco cigarettes.
How Life Insurance Companies Define Smokers
An insurance company may define you as a smoker if you use any products containing nicotine. This includes products that are designed to help you quit smoking. Depending on the company, this can include anything from cigars, to nicotine patches, to electronic cigarettes. An agent will inquire about whether you have used nicotine products when applying. The company may also verify your response to their questions getting you to take an exam, unless you are applying for life insurance that doesn’t require it.
Since there are several nicotine products, insurance companies may define smokers differently based on the products they use.
Chewing Tobacco
From a life insurance provider’s perspective, if you use this form of tobacco, it is the same as using a traditional cigarette. For that reason, those who list that they use chewing tobacco will only be offered smoker’s rates. The frequency that a person chews tobacco will also have an impact on their rates. If an exam is conducted, the test will only show nicotine in the blood. It will not differentiate between the use of a cigarette and chewing tobacco.
Pipes and Cigars
Those who smoke pipes or cigars will likely be offered smoker’s rates from an insurance company if that person smokes more than one each month. If their exam shows they have nicotine in their system, or they use other nicotine products, they will likely still be offered smoker’s rates.
Cigar smokers that that only smoke one a month or fewer may be categorized as a non-smoker by many insurance providers. That means that they will qualify for more affordable insurance rates. If you occasionally smoke cigars, Hometown Life Insurance will take into consideration the insurance company’s qualification to be a non-smoker so your insurance can be at the best price possible.
Nicotine Patches or Gum
If you are a smoker trying to quit using nicotine gum or patches, be aware that the blood tests will show that you have nicotine in your system. That is why it is essential be honest about your nicotine usage on your application, including the use of these anti-smoking products. By clarifying that you are using these products and are no longer a smoker, you can ensure that you will pay a non-smoker rate for your life insurance policy.
Vaping or E-Cigarettes
Many insurance companies consider you a smoker if you use electronic cigarettes. That means if you use these products, you may end up paying a smoker’s rate. Simultaneously, some companies do not consider vaping a method of smoking, so it is essential to specify if you vape or use electronic cigarettes. As more research is performed on this method of smoking, more insurance providers may give those who vape more reasonable rates.
What About Life Insurance for Those who Smoke Marijuana?
Since being legalized in Canada in 2018, it is now easier to secure insurance if you use marijuana than it has ever been. Across the life insurance market in Canada, there are different treatments for individuals that use marijuana. Some insurance companies will treat you as a smoker, while some will consider you a non-smoker depending on the frequency of use. Certain insurance companies will be stricter about the underwriting for cannabis users, but overall, the market is quite competitive.
If you are approved for life insurance coverage as a marijuana user, either the non-smoking or smoking rate may apply. If you have a prescription for medical marijuana, you could be faced with even higher rates because of the health condition you are using cannabis for. The final determination for your life insurance policy as a cannabis user and the amount that you will pay is a factor of your frequency of use and the view of the insurance company on the risk involved.
How Much More Are Smokers Charged?
The final rate you pay for your life insurance policy depends on several factors, including your overall health, family history, age, and the amount of coverage you choose. In most cases, these companies will charge smokers a much higher rate than non-smokers. The cost of life insurance for smokers will vary based on their age. Older policyholders who smoke will pay more than younger smokers.
When comparing a 20-year term life insurance policy for a 35-year-old healthy male, the same policy’s cost rose from around $57 per month for a non-smoker to about $151 for a smoker. That’s the same as saying a smoker can expect to pay approximately 165% more for their life insurance policy than a non-smoker. Each situation can vary, but it isn’t uncommon for the premiums to at least double for term life insurance.
The Dangers of Lying About Your Smoking Habits
Like we mentioned above, some companies will require you to have an exam before you can receive coverage. If you are a smoker and deny your usage when applying for your policy, you could cause your beneficiaries serious issues in the future.
Life insurance companies that require an exam use urine, saliva, or blood tests to check if there is nicotine, or other substances, in your body. The results will inform them if you are a smoker or not. The chemicals can show up in these tests if you have used nicotine products. Therefore, you must be honest and specify your nicotine use. You may only occasionally use nicotine products, but the tests will not indicate the difference between a heavy smoker or one who only smokes occasionally.
Suppose a smoker manages to get life insurance at a lower rate by stating that they are not a smoker when applying, and the company learns about them lying on their application after they have died. In that case, they may deny your beneficiaries’ claim for death benefits. So, if you secure a lower payment, you will end up paying for an insurance policy that will not benefit your dependents at all.
If you are fully truthful in your application and determined to be a non-smoker, even if you begin smoking in the future, you would be able to maintain your current coverage since you were a non-smoker at the time of application.
To learn more about your options for life insurance as a smoker, or to see if you could qualify as a non-smoker, contact our Hometown Life Insurance experts for more information. Our team of licensed professionals want to work alongside you to ensure that you are able to secure your family’s future with the best life insurance available to you at a highly-competitive price.
