Smoking is one of the most significant factors affecting life insurance premiums. Smokers typically pay two to four times more than non-smokers for the same coverage. However, coverage is readily available, and there are strategies to manage the cost.
Understanding how insurers define smoking and the path to non-smoker rates can save you substantial money.
How Insurers Define Smoking
Most insurers classify anyone who has used tobacco or nicotine products within the past 12 months as a smoker. This includes cigarettes, cigars, pipes, chewing tobacco, nicotine patches, nicotine gum, and increasingly, vaping and e-cigarettes.
Occasional cigar use (fewer than 12 per year) may qualify for non-smoker rates with some insurers.
Smoker Rate Classes
Insurers typically have Preferred Smoker and Standard Smoker classes. Your overall health aside from smoking determines which class you fall into. A smoker in otherwise excellent health will get Preferred Smoker rates, while one with additional health issues gets Standard Smoker rates.
The premium difference between smoker and non-smoker classes can be hundreds or thousands of dollars annually.
Path to Non-Smoker Rates
If you quit smoking, most insurers will reclassify you as a non-smoker after 12 months without tobacco use, verified by a new medical exam. Some companies allow you to request reconsideration without purchasing a new policy.
Quitting smoking is the single most impactful thing you can do to lower your life insurance costs.