Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Life insurance is a mortality product. Smoking cigarettes shortens mortality, so the exposure to the life insurance company is greater and that risk is passed in higher premiums. Depending upon your gender, age, health history and current medical condition, your premium could cost an average of 15-20% more than non smokers.
The rate for smokers is about three times that of nonsmokers. If getting No Exam insurance, the rates for a smoker and nonsmoker are not as far apart as that, but those rates usually start out higher for nonsmokers than with an exam. If there is a table rating or health condition which cigarettes compound the seriousness of the disease, the rates for a smoker can be even higher.
Unfortunately, smokers or tobacco rates as it is known in life insurance is expensive. The average life insurance company will increase premiums 2 or 3 times that of a non-tobacco user with equal health risk.. Please keep in mind that you may receive tobacco rates for cigarettes, cigars, chewing tobacco or dip snuff, marijuana, vapor cigs, nicotine patches and nicotine gum.
You need to be nicotine free for at least one year with most life insurance carriers in order to qualify for non-tobacco rates.
There are a few carriers that will consider non-tobacco rates on a person that smokes an occasional cigar, usually less than 12 per year, but you still must be nicotine free when applying. Be sure to research those procedures.
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You need to be nicotine free for at least one year with most life insurance carriers in order to qualify for non-tobacco rates.
There are a few carriers that will consider non-tobacco rates on a person that smokes an occasional cigar, usually less than 12 per year, but you still must be nicotine free when applying. Be sure to research those procedures.