I spoke with a gentlemen today regarding a life insurance quote request he made. He said very matter-of-factly that he needed a $150,000 15 year term policy and then he paused. He said “out of curiosity…what’s the insurance surcharge for smokers?” When I asked him if he was a smoker he said no, but I could tell that he probably was. I told him that if he was a smoker, then the life insurance company can find out from the life insurance physical and various databases. He quickly fessed up and said he was an occasional smoker.
It’s no big secret that insurance companies charge people more for their life insurance if they smoke. It makes sense for the life insurance company to charge more because smoking is related to other health problems. The rates vary from company to company so it’s hard to say how much more. I would guess that on average, it’s at least 50% more and sometimes as much as 200% more. I know you’re probably kicking yourself for being a smoker (or maybe not), but there’s good news. There are actually some life insurance companies that aren’t too hard on smokers. That’s why it’s important to work with an experienced agent who works with multiple life insurance companies, because they can help you find the lowest rates for a smoker.
Here are a few things that a life insurance company might consider when determining what rate you’ll pay:
- Your nicotine use
- Other tobacco use
- Are you a daily smoker or social smoker?
There are certain instances where a social smoker or other types of nicotine use can still qualify for a non-smoker rate. It depends on the company and your situation. That’s why it’s important to be truthful with your life insurance agent. Don’t just tell them you’re a smoker. Be sure to tell them what you smoke and how often because it could make a difference in your premium.
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