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You can likely get life insurance as a smoker, but be prepared to pay a substantially higher monthly premium than nonsmokers. Some studies predict that smokers pay around 2.5 times more for life insurance premiums than nonsmokers.
Premiums are higher for smokers because smoking may lead to health issues and reduce life expectancy. As such, policy options for smokers may be limited, such as a smaller death benefit or shorter coverage terms. Here's what you need to know about life insurance for smokers.
Do Life Insurance Companies Offer Policies to Smokers?
Yes, life insurance companies offer policies to smokers, but they charge significantly higher rates than for nonsmokers. As we'll see, your life expectancy is a significant factor insurers consider when setting policy terms and premiums. As such, premiums are higher, and policy options are fewer for smokers. The best way to secure more affordable life insurance is to quit smoking.
While you can usually qualify for a life insurance policy, some insurers may deny coverage if you have a disease from smoking or if the insurer suspects you of lying about tobacco use on your application.
How Does Life Insurance for Smokers Work?
One of the primary purposes of life insurance is to help provide a financial safety net for your beneficiaries when you die. Generally, life insurance companies set their policy terms and pricing based on your life expectancy, overall health and factors that impact both, such as smoking or tobacco use.
For instance, the New England Journal of Medicine found that smokers die 10 years earlier than nonsmokers. Also, the Centers for Disease Control and Prevention (CDC) estimates that smoking leads to a host of serious health conditions, such as cancer, lung disease and diabetes.
As a result, life insurance policies are different for smokers than nonsmokers in the following ways.
- Higher premiums: To compensate for their increased risk, life insurance companies set premiums higher for smokers than nonsmokers. According to Policygenius data, smokers pay 217% more on average than nonsmokers for life insurance.
- Limited policy terms: If you smoke, you may find reduced death benefits and shorter term life insurance policies than those available to nonsmokers. Additionally, you may have fewer options for policy riders, like critical illness coverage.
- Nicotine exam: Insurance companies often require life insurance applicants to take a medical exam. Typically, this exam includes a nicotine test—using a urine, blood, saliva or hair sample—to determine your smoking and tobacco use status.
Factors Influencing Smokers' Life Insurance Premiums
Life insurance premiums for smokers and nonsmokers alike are based on several factors, such as:
- Age: Statistically, younger policyholders are less likely to die and have a longer timeline to pay premiums. Consequently, policy premiums are typically lower for younger policyholders than older ones.
- Gender: Life insurance premiums may be lower for females because they live longer (79.3 years on average) than males (73.5 years on average), according to 2021 data from the CDC.
- Health: If you have a disability or a significant medical condition like heart disease, cancer or diabetes, your life insurance premium will likely be higher than someone with a minimal or no history of serious health conditions.
- Family medical history: An insurer could increase your premium rate if your family has a history of serious illness or disease.
- Lifestyle and occupation: Just as smoking is a lifestyle decision that could impact your longevity, so are activities like bungee jumping or motorcycle racing. Similarly, some high-risk occupations like mining and stunt work can impact your premiums due to their inherent risks.
- Policy type: The type of life insurance you purchase significantly affects the premium price you'll pay. For example, your employer may provide you with free group insurance, whereas you'll have to pay out of pocket for an individual policy. Also, term life insurance policies for a specific time length generally have lower premiums than whole life coverage, which covers you for as long as you own the policy.
In addition to the preceding factors, smokers also pay higher premiums based on their smoking status, which isn't limited exclusively to cigarette smoking. Insurance companies may classify you as a smoker, tobacco user or nicotine user, for using various products, such as:
- Cigarettes (including e-cigarettes)
- Cigars
- Hookah
- Marijuana
- Pipes
- Smokeless tobacco
- Vapes
How Do Insurance Companies Classify Smokers?
Life insurance premiums are based in part on what's known as your health classification, a designation assigned to you by your insurer during the application process. Several factors, including your age, health, body mass index (BMI) and smoking status, factor into the life insurance rating you receive. Generally, the better your life insurance rating, the higher your likelihood of receiving lower premium rates and more policy options.
For example, a life insurance applicant may receive a Preferred Plus classification with no tobacco use history, a clean medical history, a low BMI and only minor health conditions.
By contrast, insurance companies usually charge higher premiums for smokers with the following health classifications.
- Preferred smoker: Smokers who are generally in good health with no more than two controlled or resolved minor health issues and a clean history of hereditary and major medical conditions. If they didn't use tobacco, these policyholders might qualify for the Preferred Plus classification.
- Standard smoker: This health classification is for regular smokers in average health and could include moderate, chronic or mental health conditions.
How Much Does Life Insurance Cost for Smokers?
Your smoking status is a significant factor when insurers set their rates. Smokers can expect to pay up to 2.5 times higher premiums than nonsmokers, as the following table for a 20-year, $500,000 term life insurance policy demonstrates:
| Nonsmoking vs. Smoking Annual Premium Rates for Term Life Insurance | |||
|---|---|---|---|
| Gender and Age | Nonsmoking Rate | Smoking Rate | Rate Increase for Smokers |
| Male age 30 | $219 | $755 | 244% premium increase |
| Male age 40 | $224 | $790 | 252% premium increase |
| Female age 30 | $179 | $560 | 212% premium increase |
| Female age 40 | $189 | $649 | 243% premium increase |
Source: Quotacy. These rates are the lowest for men and women in average health on a 20-year, $500,000 term life insurance policy in ZIP code 95602. As all rates are based on an individual basis, the rate you receive may vary.
The Bottom Line
If you quit smoking, you may qualify for a lower rate from your life insurance provider. Ask your agent to reconsider your rate if you believe you'll pass a nicotine test. You'll likely need to take another medical exam, but it may be worth it to get a lower rate. Alternatively, you can shop around and apply with another provider to start a new policy as a nonsmoker.
Keep in mind, some states allow life insurers to consider a credit-based insurance score to set your premiums. If your state permits this practice, it could be wise to improve your credit before applying for life insurance. Check your credit report and credit score for free with Experian to see where your credit stands and fix any errors you spot on your report.