Still a Smoker? Here Are Three Ways That Smoking Can Impact Your Life Insurance

Still a Smoker? Here Are Three Ways That Smoking Can Impact Your Life Insurance

By now, most people are well aware that smoking is bad for personal health. However, sometimes people have not followed that line of reasoning out to its logical conclusion. Since smoking is bad for one’s health, it makes sense that it is difficult for smokers to find a cheap life insurance policy.

There are three major ways that smoking can impact a life insurance policy, and they are detailed at length below.

Smoking Can Almost Double The Cost of Life Insurance Premiums

Smoking goes a long way in making a cheap life insurance policy very difficult to find. In fact, many people have reported that being a smoker has nearly doubled their premiums for life insurance.

Considering that, it is clear that smoking can be a very expensive habit. This is why it is important to shop around if you are a smoker to determine the difference between different policies. For example, some underwriters will factor smoking as less of a risk in your policy, which would mean that you would have lower premiums. Though smoking makes life insurance more expensive no matter what, by shopping around you may be able to find a better deal.

All Smokers Are Considered Equal

The unsettling thing about this is that any tobacco use in the last twelve months qualifies a person as being a smoker in most cases. Insurance companies do not distinguish when it comes to the frequency of smoking, but instead have a more expensive rate for all smokers. Some insurance underwriters even penalize people for reporting the occasional celebratory cigar. Any tobacco use is risky when it comes to being evaluated for a life insurance policy.

The Consequences of Hiding the Habit

Because life insurance premiums are so drastically affected by being a smoker, many people endeavor to hide their habit in an effort to get lower premiums. Life insurance outfits do not check every applicant’s medical history, so it is possible for some people to get away with their lie. However, if the smoker dies from a smoking related cause, the life insurance company will often refuse to pay out the policy as a consequence of this lie. Sometimes, the insurance company will pay a percentage of the policy but will not pay the policy in full. Lying to a life insurance company about being a smoker is considered fraud and is not treated lightly.

All in all, smoking is a very expensive habit and can have unfortunate effects on a person’s life insurance policy, not to mention their overall health and quality of life. If you’re a smoker, shop around for cheap life insurance but understand and accept that just being a smoker means you are going to have to pay more for life insurance. If it is possible for you to kick the habit, do it as soon as you can, because this will save you a lot of money in the long run!

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