Life Insurance for Smokers: Your Guide in 2023
If you're a smoker, you might have heard that getting life insurance can be a bit more challenging and expensive compared to non-smokers. But the good news is that there are insurance companies out there that understand your situation and offer reasonable options. We've prepared a guide to help you find the best life insurance companies for smokers and former smokers in 2023.
What Does It Mean to Be a Smoker for Life Insurance?
When you're applying for life insurance, the insurance companies will want to know if you use tobacco, and what kind of tobacco products you use, like cigarettes, cigars, chewing tobacco, and even e-cigarettes. This is essential because it affects how they compare quotes and assess health risks.
- Comparing quotes is a crucial step in finding the best life insurance for smokers. Different companies may offer varied rates for smokers, and comparing quotes allows you to discover the most affordable options. It's like shopping around for the best deal.
- For life insurance applicants, especially those who smoke, health risk is a significant factor. Smoking is considered a health risk, which means you may face higher premiums.
- Health risk essentially means the chance of health issues, which is why smokers often face higher premiums. So, it's vital to understand that being a smoker might lead to higher life insurance rates.
- Life insurance applicants may need to go through a medical exam, especially if they have health issues or are applying for significant coverage amounts. Some companies might require this to assess your health conditions and determine your premiums.
It's important to mention that when you apply for life insurance, being honest about your smoking habits is crucial. If you don't disclose that you're a smoker and are later found to have lied during the contestability period, the insurance company might deny the death benefit. In other words, if you lie, you may jeopardize your family's financial future.
How Do Insurers Classify Smokers?
When you apply for life insurance, insurers classify you based on your overall health, habits, and hobbies. They range from "Preferred Plus" (the best) to "Smoker" (the highest cost). If you're a smoker, you'll typically receive a lower health classification, leading to higher premiums.
It's also important to know that health risk plays a significant role here. Smoking is a health risk, and it often leads to being classified as a smoker, resulting in higher premiums.
So, to qualify for non-smoker rates, most companies typically require you to be nicotine-free for at least a year. This way, your chances of finding affordable life insurance improve.
How Much Does Life Insurance Cost for Smokers?
For smokers, the cost of life insurance can be significantly higher than for non-smokers. On average, smokers pay about 217% more than non-smokers for the same policy.
For example, if you're a 25-year-old smoker looking for a $500,000, 20-year term life insurance policy, you could end up paying an extra $8,800 compared to a non-smoker over the policy's duration. These higher life insurance rates are primarily due to the health risks associated with smoking.
- Chew tobacco is another factor that might affect your application. Using chewing tobacco can show up on a nicotine test for days or even weeks after your last use, affecting your health risk assessment. If you test positive for nicotine and cotinine, you'll be classified as a smoker.
- Cigar smokers might be in a slightly better position. While life insurers categorize applicants into smokers and non-smokers, some companies may be more flexible, classifying you as a non-smoker if you only occasionally enjoy a cigar. In this case, it's essential to compare quotes from different insurers to find the most smoker-friendly option.
- Now, it's important to note that marijuana users also face challenges when seeking life insurance. Some insurers classify marijuana users as tobacco users, which means they may only be eligible for smoker rates. If you're one of the marijuana users, especially if you vape it, you're more likely to be charged higher premiums due to the health risks associated with smoking.
Best Life Insurance Companies for Smokers in 2023
Now, let's get to the good part - which insurance companies are more understanding and flexible when it comes to smokers? Finding the best life insurance companies for smokers is essential to ensure you're getting a policy that suits your needs and budget.
- One such company to consider is Mutual of Omaha. They offer competitive rates to smokers, and if you quit smoking, you can apply for lower premiums after a year. This is an excellent option if you aim to reduce your premiums and improve your health risk profile.
- Corebridge Financial, formerly known as AIG Life & Retirement, is another great choice for smokers. They provide affordable term life insurance for smokers and offer some of the most competitive rates on the market, which can significantly help in managing your higher premiums.
- Transamerica is a reputable company that is reasonably priced and allows smokers in good health to apply without a medical exam. This no-medical-exam option can be a big relief for smokers concerned about health issues affecting their premiums.
- Pacific Life is a noteworthy mention for smokers looking for guaranteed universal life insurance (GUL). It can be an affordable option, even if you face higher life insurance rates due to smoking. With GUL, you get permanent coverage and the assurance of a death benefit for your loved ones.
- Banner Life remains our top choice for term life coverage due to its competitive rates and long terms. This company understands that smokers might need flexible options, and they offer that flexibility.
- Lastly, MassMutual stands out for its higher dividends to policyholders and competitive rates for smokers in good health. While whole life insurance rates are generally higher for smokers due to the associated health risks, MassMutual offers a good balance between cost and benefits.
We hope this guide helps you navigate the world of life insurance as a smoker. Remember, each insurer is different, so it's a good idea to get quotes from multiple companies to find the policy that suits your needs and budget. Comparing quotes is a valuable step to ensure you get the best deal possible, even if you're facing higher premiums due to being a smoker.
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