How Much Does it Cost to Purchase Life Insurance for Smokers

by Jeff Rose on February 6, 2017 · 0 comments

Getting life insurance is one of the most important things that you can do for your loved ones. It’s the best way to provide for them, regardless of what happens to you. It will give them the money that they need if you were to pass away. Finding the perfect life insurance plan can be a long and frustrating process.

If you are a smoker, you probably know that life insurance for smokers can be more difficult to get and is generally more expensive than insurance for non-smokers.

However, the difficulty in getting low-cost insurance for smokers has led to a wide market for insurers who offer low rates for these applicants.

These companies can get you insurance rates that are close to the rates offered by other companies to non-smokers. Working with us will give you many options to look over as we work with many of the top life insurance carriers such as Banner Life Insurance.

Why You Need Life Insurance

affordable life insurance for smokersBefore we talk about getting the lowest life insurance rates possible, you need to understand the importance of a life insurance plan. The goal of life insurance is to provide your family with the funds they need to get through the difficult time of losing a loved one.

The average funeral costs $10,000, which can be a difficult bill for a grieving family to cover. That doesn’t account for all the other expenses that you would leave behind, like a car payment, mortgage, or student loans. Even a simple insurance plan for your funeral gives you and your family peace of mind knowing they would be taken care of in case something tragic was to happen.

The funeral costs probably isn’t going to be the only expense that your loved ones are going to be left with. More than likely, your family is going to be left with a massive amount of debt from your mortgage, car payments, and much more. Your family be responsible for all your expenses, which can make an already difficult situation a thousand times worse. The primary goal of life insurance is to give your loved ones the money that they need to pay off all of those expenses without being left with all of your debts.

Additionally, if your family relies on your paycheck, your life insurance will give them the money they need to replace that source of income. Your life insurance policy will help them get through the difficult time without having to sacrifice their standard of living.

How Much More Is Life Insurance For Smokers

Remember, premiums don’t go up just because your a smoker. That goes for chewing tobacco, too. I had a client in his younger 30’s who looked to be in good health.

I was floored when his medical came back and he was quoted as a tobacco user. Turns out I had no idea that he chewed (and he didn’t bother to tell me). If you use chewing tobacco, you could get the exact same rates as a traditional smoker, which can be twice as much as a non-smoker is going to pay.

There are some insurance companies that will give you better rates for using chewing tobacco, better than what other companies are going to give you. If you want to get the lowest insurance rates, it’s vital that you find an insurance company that is going to view your tobacco usage more favorably.

Guess how much more premiums for smokers are compared to non-smokers?

Some are almost four times as much!

I ran term life quotes for a male and female at 30 year term $250,000 preferred non-tobacco and preferred tobacco. In some of those numbers I ran the other day, I found differences up the 3.8 times as high for smokers versus non-smokers.

Check out these numbers for insurance premiums of tobacco users vs. non-users:

  • 30 Year Old, Male Non-Smoker: $282
  • 30 Year Old, Male Smoker: $735
  • Percent Difference: 2.606 times as expensive for the smoker
  • 30 Year Old, Female Non-Smoker: $200
  • 30 Year Old, Female Smoker: $527.50
  • Percent Difference: 2.638 times as expensive for the smoker
  • 40 Year Old, Male Non-Smoker: $375
  • 40 Year Old, Male Smoker: $1434
  • Percent Difference: 3.824 times as expensive for the smoker (this is the highest difference)
  • 40 Year Old, Female Non-Smoker: $300
  • 40 Year Old, Female Smoker: $977
  • Percent Difference: 3.256 times as expensive for the smoker

Here are some numbers for a 20 year term at $250,000 for a 40 year old

I ran these numbers since I figured a 40 year old probably wouldn’t want to have a life insurance premium payment until they were 70 years old.

  • 40 Year Old, Male Non-Smoker: $230
  • 40 Year Old, Male Smoker: $852
  • Percent Difference: 3.704 times as expensive for the smoker
  • 40 Year Old, Female Non-Smoker: $200
  • 40 Year Old, Female Smoker: $690
  • Percent Difference: 3.450 times as expensive for the smoker

Shopping Around For Insurance

The best insurance plan for smokers is to take a hard look at various companies that offer life insurance for smokers to find ones that offer reasonable rates. You should apply to several companies to see which one offers the best rate. For smokers, the difference between the prices offered by various insurance companies can be enormous.

You can save more than 20 percent on life insurance for smokers by shopping around and finding a company that specializes in low rates for smokers.

What Qualifies As Smoking?

We know that cigarettes and chewing tobacco qualify you as a tobacco user, but what about cigars or electronic cigarettes? Will you get smokers rates if you have an occasional cigar? Most companies won’t give you a full “smokers” rating if you smoke electronic cigarettes. If you smoke only occasionally smoke cigars, avoid smoking them several weeks before your health exam. A lot of the smokers rating vary company by company, be honest with the insurance agent.

Just like each company has different policies and medical underwriting, they all have different definitions of “smoking” and what it going to fall under that. Each companies view tobacco usage differently, which can have a drastic impact on your life insurance application.

How Much Life Insurance Do You Need To Buy?

Aside from getting an affordable life insurance plan, it’s vital that you purchase enough coverage to protect your family if something tragic were to happen to you. Getting the right amount of life insurance protection is a delicate balance between not buying too much and getting enough coverage.

The first thing that you need to account for is your debts and final expenses that your loved ones would be left with. Add up all of your mortgage payment, car payments, and anything that your family would be responsible for. The primary goal of your life insurance is to give your family the money that they need to pay off your debts.

The secondary goal of your life insurance plan is to give your loved ones the money they need to replace your paycheck. If you’re one of the main income earners in your household, they would suffer financially. The best way to offset this financial suffering is to have a life insurance plan. After you add up these numbers, you’ll see how much life insurance that you and your family need.

Lowering Your Insurance Rate

If you want the best possible rate, the best plan of action is to shop around, take the best offer you can find and then to stop smoking. If you can quit for a year, you can get a policy that is priced as low as any other non-smoker policy. If you have other health issues, such as diabetes, your rate may be higher, but a healthy person who has been smoke-free for a year can expect extremely low rates from most insurance companies. Your rate can be about half of what you paid before under your smokers’ policy.

Once you have decided on your course of action, you can look into life insurance for cigar smokers if you regularly smoke cigars or the best non-tobacco life insurance rates after quitting smoking if you want to choose that path. Each will give you a different rate scale, and each will have different life insurance companies that specialize in rates for those applicants.

Another way that you can get lower insurance rates is to improve your health in several different ways. One of those is to stick to a healthy diet. Eating healthier food is going to help you lose weight, lower your blood pressure, and drastically improve your overall health, which is going to translate into better rates from the insurance company.

Another way that you can lower your insurance premiums is to get regular exercise. Getting enough exercise can also help you lower rates and is going to translate into a better rating from the insurance company. Hitting the gym could save you hundreds on your life insurance plan.

The best way to get the lowest insurance rates is to work with one of our independent insurance agents. Unlike a traditional insurance agent, our agents represent dozens of highly rated companies across the United States, which means that we can bring all of the best rates directly to you. You won’t have the hassle of calling all of the companies yourself.

Because every insurance company is different, they all have different medical underwriting, you could receive drastically different rates from two companies. It’s vital that you get the most affordable policy to fit your needs.

If you have any questions about getting life insurance or the different options available to you, please contact us today and we would be happy to answer those questions for you. Because you don’t know what’s going to happen tomorrow, you shouldn’t wait any longer to get the insurance protection that your family deserves.

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