Co-Founder, Coastal Financial Partners Group, California
Yes, smoking affects life insurance rates but how much depends on other health and lifestyle factors. In general, the premium for term life insurance for people in their thirties and forties is three times more for tobacco users than for non tobacco users. The factor widens on older individuals.
The kind of smoking or tobacco use affects rates, too. In recent years, a few innovative insurance companies have been offering non tobacco rates to cigar smokers and users of smokeless tobacco making their tobacco class rates effectively cigarette user rates.
Celebratory cigar use e.g. once or twice a year at weddings, may even qualify at such innovative insurance companies for preferred non tobacco premium rates.
Yes, smoking or tobacco use is probably one of the main increases in life insurance premiums. Most life insurance companies will increase premiums over 200% to 300% over a non-tobacco applicant with exact health status. Tobacco is viewed as a much higher risk, as we know it will shorten a human's life by several years.
Be aware that using nicotine patches or gum is rated the same as tobacco use. There are a few carriers that will consider non-tobacco rates for an occasional cigar or pipe smoker. Consult an experienced life insurance broker for help with those carriers. Most carriers are now rating tobacco rates for marijuana and vapor cigs as well. Again consult with a professional broker to find the best carrier for your unique situation.
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The kind of smoking or tobacco use affects rates, too. In recent years, a few innovative insurance companies have been offering non tobacco rates to cigar smokers and users of smokeless tobacco making their tobacco class rates effectively cigarette user rates.
Celebratory cigar use e.g. once or twice a year at weddings, may even qualify at such innovative insurance companies for preferred non tobacco premium rates.
Be aware that using nicotine patches or gum is rated the same as tobacco use. There are a few carriers that will consider non-tobacco rates for an occasional cigar or pipe smoker. Consult an experienced life insurance broker for help with those carriers. Most carriers are now rating tobacco rates for marijuana and vapor cigs as well. Again consult with a professional broker to find the best carrier for your unique situation.