Did you realize that smokers may have to pay as much as three times more for a life insurance premium than a nonsmoker? Obviously you can save quite a bit of money on your life insurance costs if you quit smoking. Insurance rates for medical and car insurance are increasing, while the cost of life insurance premiums actually have decreased by as much as fifty percent recently. Life insurance is actually more affordable now, at least if you don’t smoke. On the other hand, the premiums for people who smoke have increased.
To people who smoke, the higher premium costs for life insurance might seem like discrimination. However, these higher premium costs for smokers really are justified. Smokers on average die twenty five years before the average nonsmoker does. Given the fact that rates for life insurance are based on the statistical likelihood of their policyholders dying, it does make a lot of sense that smokers would be required to pay more. High mortality rates for smokers are often related to a number of ailments caused by nicotine, including pneumonia, cataracts, Alzheimer’s disease, peptic ulcers, lung and other types of cancer, heart disease and strokes.
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In terms of who is considered a smoker, most life insurance companies don’t consider you a nonsmoker until you haven’t used tobacco for 12 months. Once you have accomplished this, you will qualify for their standard rates. If you haven’t used tobacco for at least three years, then you may qualify for their preferred rates. Being smoke free for five years can qualify you for your insurance company’s preferred plus rates. Those are the best available rates. On the life insurance application it asks about your use of tobacco. Even smoking a few cigarettes a year or enjoying an occasional cigar will classify you as a smoker. During the medical exam, your urine analysis will be tested for nicotine. If you only smoke infrequently, then you may pass the urine test. However you need to be sure you are honest about your use of tobacco and smoking.
It may be tempting to stop smoking for a couple days, try to pass the urine test, and then lie about the fact that you smoke on the insurance application. This is quite risky, however. If you die and your claim is investigated by the insurance company, they could find out quite easily if your death was related to smoking. If it was related then the claim would definitely be denied, leaving your beneficiaries with nothing.
