How Much is Life Insurance After You Have Quit Smoking?

by Jeff Rose on December 12, 2016 · 0 comments

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life insurance quit smokingMy father had smoked for much of his adult life until he was 40.

That is until he had me. He told me that seeing the burn holes from his ashes on his white undershirt was the reason he was determined to quit because he didn’t want those ashes falling on his newborn son.

To quit smoking is one of the hardest challenges that many people addicted have to face but the benefits are huge.

Most people understand the health benefits that go along with quitting smoking but many might not know or appreciate the financial savings that goes along with breaking the habit.

One of those savings that you can experience is with your life insurance policy. We have shared in the past the cost of life insurance for smokers. The cost can be anywhere from two to three times what a typical nonsmoker would pay.

Even rates for people that chew tobacco can be expensive, but what happens if you are finally able to kick the habit? Are you still going to have to pay rates as if you are a smoker?

Life insurance is one of the most important investments that you’ll ever make for your family, but it can be a long and difficult process trying to find affordable coverage, especially if you’re a smoker. If you’ve ever looked for life insurance before as a smoker or tobacco user, you may think that you can afford to get quality insurance, but that couldn’t be further from the truth. Not having life insurance coverage is one of the worst mistakes that you could ever make for your loved ones.

The good news is that if you kick the habit, you also have the potential to save a lot of money in your life insurance but if you are not working with an independent life insurance agent that knows what they are doing, that might not be the case. Let me explain….

Life Insurance For Someone Who Recently Quit Smoking

We recently took a call from a gentleman that had quit smoking 13 months prior. When he initially applied for life insurance, he was able to get with a company that would give him a standard rating even though he hadn’t quit smoking for one year. Many carriers will give you the benefit of the doubt so as long as you actually kicked the habit.

Since he had reached a year of quitting smoking, he was hopeful that he could reduce his rates even more. By the time he came to us, he had already talked to a few different agents and the most recent quote that he was given was a standard plus nonsmoker rate from MetLife with an annual premium of $1109 (see screen shot below). This was the independent agent that he trusted and felt knew what they were doing. Being the wiser, he decided to shop around just to make sure. Good thing he did.

how much is life insurance after you quit smoking

Working With an Independent Life Insurance Agent That Knows Their Stuff

One of the biggest benefits of working with an independent agent is that they should be able to work with dozens of different carriers. But just because they can work with dozens of different carriers isn’t always a good thing if they don’t know the underwriting guidelines for each company. This situation was a case in point example.

Our potential client was quoted a standard plus rating with an annual rate of $1109. This is because MetLife will only give a preferred rating if the individual had quit smoking for greater than five years. I was confident that we do better. Much better.

Right now, the high risk life insurance companies  that treat former smokers the most favorably will give you a preferred rating so as long as you quit smoking for a period of one year. Currently, these companies include Nationwide, Minnesota Life, and Principal. You can see their rates below. FYI, these premiums are based on the individual that was applying. He was approximately 40 years-old and seeking a $1 million dollar for a 2o year term.

20 Year Policy for $1,000,000PrincipalMinnesota LifeNationwide
Male 20 Year Policy for $1,000,000$924.40/YR$965.00/YR$1,485.00/YR
Female 20 Year Policy for $1,000,000$767.70/YR$785.00/YR$1,065.00/YR

Non-Smoker Rates

As you can see from the chart above, just because you can get preferred doesn’t necessarily mean it will be cheaper. Nationwide would actually cost more for him at preferred than Metlife would at standard plus. A good independent agent will do their homework to find this out.

What was cheaper was the two other companies with Principal being the cheapest at $924 per year.

We were able to save the client $185 per year because we knew which carriers would approve him at preferred.

Over the 20 year term that’s $3,700 in savings!

How much Insurance Coverage you need

Aside from finding the best insurance policy to fit your needs, the next most important factor is calculating your life insurance needs and buying enough insurance to cover your family. There are several different factors that you need to account for when looking at your insurance needs.

The first is how much debt you currently how and any final expenses that your loved ones would be left with after you pass away. The primary goal of a policy is to ensure that your family has enough money to pay off all of the bills you they would be responsible for. Make sure that your insurance plan is large enough to pay for all of those final expenses.

The next factor to consider is your annual income. The second goal of life insurance is to replace your paycheck for the family members that rely on your salary every month. If you’re one of the main income earners in your family, and something tragic were to happen to you, your family would run into financial struggles. A low cost term life insurance plan can give your family the money they need to get through the difficult time without sacrificing their standard of living.

Bottom Line on Quitting Smoking

If you’ve quit smoking and are looking for affordable life insurance, it is possible.  If you’ve quit for over a year, getting a preferred rating is a cinch with the carriers mentioned above.   Please keep in mind that you still have to meet other underwriting guidelines and can’t have any high risk conditions.   If you’re seeking a preferred plus rating, you’re looking at least having quite for 3 years.

If you’re looking to improve your chances of getting a preferred rating, there are several lifestyle changes that you can make to get lower premiums and save money. The first is to improve your health through a healthy diet and exercise. Both of these are going to help you lose weight, strengthen your heart, and lower your blood pressure.

If you’re now a non-smoker looking for life insurance looking for quick quote, you can use our free life insurance quoter or contact us direct.  If you have any questions about life insurance, or getting the best insurance as a smoker or former smoker, please contact us today. We are dedicated to getting you the best policy and helping you make an informed decision.

One of the best ways to ensure that you’re getting the best insurance coverage for the most affordable price is to work with an independent agent like ours at Life Insurance by Jeff. Unlike traditional insurance agents that work with one specific company, we represent dozens of best life insurance companies across the United States. Our agents can help you save both time and money on your life insurance plan.

Each company has a different system for rating applicants that are smokers or used to be smokers, which means you could receive drastically different premiums for the same coverage. Because there are so many companies, you could spend weeks calling different agents to receive rates from all of the insurance companies. Instead, you can let our agents do all of that work for you, they can provide you with the best rates from dozens of companies.

You never know what’s going to happen tomorrow. Tragedy could strike at any moment. Don’t wait any longer to get the life insurance policy that your loved ones deserve. Don’t leave them with financial burdens that could have been avoided.

 

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