How to Save Money on Life Insurance for Smokers | Tips & Tricks

 

If you’re a smoker, you probably know that your habit can have serious consequences for your health and your wallet. Smoking can increase your risk of developing various diseases, such as cancer, heart disease, and stroke. It can also make it harder and more expensive to get life insurance.

Life insurance is a vital financial protection for smokers and their families. It can help cover your funeral costs, pay off your debts, replace your income, and provide for your loved ones in case you die prematurely. But life insurance companies charge smokers much higher rates than non-smokers because of the increased mortality risk.

So how can you save money on life insurance as a smoker? Is it even possible to get affordable coverage? The answer is yes, but you need to know some tips and tricks to find the best policy for your needs and budget. In this article, we’ll show you how to:

• Understand what counts as smoking for life insurance purposes
• Learn how smoking affects your life insurance rates and options
• Find the best life insurance company for smokers
• Lower your life insurance rates as a smoker

What Counts as Smoking for Life Insurance Purposes

The first thing you need to know is how life insurance companies define smoking and tobacco use. This can vary from one insurer to another, but generally speaking, smoking means using any product or method that delivers nicotine into your system.

Some examples of nicotine products and methods that can affect your life insurance rates are:

• Cigarettes
• Cigars
• Pipes
• Hookahs
• Vaping and e-cigarettes
• Chewing tobacco
• Snuff
• Dissolvable tobacco
• Nicotine patches, gums, lozenges, inhalers, and sprays

Some life insurance companies may also consider marijuana use as smoking, depending on whether you use it occasionally or regularly. However, some insurers may be more lenient and offer non-smoking rates to marijuana users who don’t smoke tobacco.

Life insurance companies test for nicotine by taking a blood or urine sample during the medical exam. They may also ask you about your smoking history and habits on the application form. You should always be honest and disclose your tobacco use, as lying can result in denial of coverage or cancellation of your policy.

Nicotine can stay in your system for different periods of time depending on how often and how much you smoke. Generally, it can be detected in your blood for up to 10 days, in your urine for up to 3 weeks, and in your hair for up to 3 months.

How Smoking Affects Your Life Insurance Rates and Options

The second thing you need to know is how smoking affects your life insurance rates and options. Smoking can have a significant impact on both the cost and the availability of life insurance policies.

Life insurance rates are based on several factors, such as your age, gender, health, family history, occupation, hobbies, and lifestyle. Smoking is one of the most important factors that influence your premiums because it increases your chances of dying sooner than expected.

To illustrate this point, let’s compare the average monthly rates for smokers and non-smokers for different types of policies and coverage amounts. The following table shows the rates for a 20-year term life policy with a $500,000 death benefit for a 40-year-old male in good health:

Smoker Status	Average Monthly Rate
Non-smoker	$32
Smoker	$144

As you can see, the smoker pays more than four times as much as the non-smoker for the same policy. That’s a difference of $112 per month or $1,344 per year. Over the course of 20 years, that adds up to $26,880 more in premiums.

Smoking can also limit your policy choices and eligibility. Some life insurance companies may not offer certain types of policies or riders to smokers, such as whole life, universal life, or long-term care riders. Some insurers may also deny coverage to smokers who have other health issues or complications related to smoking, such as lung cancer, emphysema, or chronic obstructive pulmonary disease (COPD).

How to Find the Best Life Insurance Company for Smokers

The third thing you need to know is how to find the best life insurance company for smokers. Not all life insurance companies are created equal when it comes to underwriting smokers. Some insurers are more friendly and flexible than others when it comes to setting rates and offering policies to smokers.

That’s why it’s crucial to shop around and compare quotes from multiple insurers before buying a policy. You may be surprised by how much you can save by choosing the right company for your situation. You may also find more options and features that suit your needs and preferences.

Some factors to consider when choosing a life insurance company as a smoker are:

• Financial strength: You want to choose a company that has a strong financial reputation and rating from agencies such as A.M. Best, Standard & Poor’s, or Moody’s. This indicates the company’s ability to pay claims and honor its obligations.
• Customer service: You want to choose a company that has a high level of customer satisfaction and feedback from sources such as J.D. Power, Better Business Bureau, or Trustpilot. This indicates the company’s quality of service and responsiveness.
• Policy features: You want to choose a company that offers the type of policy and coverage amount that you need and want. You also want to look for any additional benefits or riders that may enhance your policy, such as living benefits, conversion options, or wellness programs.
• Underwriting guidelines: You want to choose a company that has favorable and flexible underwriting criteria for smokers. You also want to look for any discounts or incentives that may lower your rates, such as quitting smoking, improving your health, or participating in a wellness program.

Based on our research and criteria, some of the best life insurance companies for smokers are:

• John Hancock: Best for smokers who plan to quit
• Haven Life: Most affordable
• Transamerica: Best for living benefits
• Ethos: Best for smokers in excellent health
• Mutual of Omaha: Best for guaranteed issue
• MassMutual: Best for cigar smokers
• Prudential: Best for marijuana smokers

How to Lower Your Life Insurance Rates as a Smoker

The fourth thing you need to know is how to lower your life insurance rates as a smoker. Even though smokers pay more for life insurance than non-smokers, there are some ways to save money and get the best deal possible. Here are some practical tips to lower your life insurance rates as a smoker:

• Quit or reduce smoking: The best way to save money on life insurance as a smoker is to quit or reduce smoking. The longer you stay tobacco-free, the lower your rates will be. Some insurers may offer you a lower rate after one year of quitting, while others may require two or more years. You may also get a lower rate if you smoke less frequently or use less harmful methods of nicotine consumption, such as vaping or chewing gum.
• Improve your overall health: Another way to save money on life insurance as a smoker is to improve your overall health. Smoking can affect your blood pressure, cholesterol, weight, and other health indicators that can impact your premiums. By improving these factors, you can lower your risk profile and qualify for better rates. You can improve your health by exercising regularly, eating a balanced diet, managing stress, and getting regular check-ups.
• Choose the right policy type and term length: Another way to save money on life insurance as a smoker is to choose the right policy type and term length. Term life insurance is usually cheaper than permanent life insurance because it only covers you for a specific period of time, such as 10, 20, or 30 years. You should choose a term length that matches your needs and financial obligations, such as paying off your mortgage or sending your kids to college. If you need lifelong coverage, you may consider a permanent policy that has cash value and other benefits, but be prepared to pay more in premiums.
• Take advantage of discounts and riders: Another way to save money on life insurance as a smoker is to take advantage of any discounts and riders that may be available from your insurer. Some insurers may offer discounts for paying annually instead of monthly, bundling multiple policies, or having a good driving record. Some insurers may also offer riders that can enhance your policy without increasing your cost too much, such as accelerated death benefit riders, waiver of premium riders, or return of premium riders.

Conclusion

Life insurance is an essential financial protection for smokers and their families. It can help cover your final expenses, pay off your debts, replace your income, and provide for your loved ones in case you die prematurely.

But life insurance can also be costly and challenging for smokers because of the increased mortality risk. Smokers can pay up to four times more than non-smokers for the same policy. Smokers may also have fewer options and eligibility for certain types of policies.

That’s why it’s important to know how to save money on life insurance as a smoker. By following the tips in this article, you can:

• Understand what counts as smoking for life insurance purposes
• Learn how smoking affects your life insurance rates and options
• Find the best life insurance company for smokers
• Lower your life insurance rates as a smoker

Don’t let smoking stop you from getting the coverage you need and deserve. Start comparing quotes from multiple insurers today and apply for a policy that fits your needs and budget.