Smoking Affects Your Life Insurance Premiums

June 13, 2018


When a person applies for a life insurance, he will be evaluated based on his health condition, lifestyle, age, etc. Insurance companies prefer to do business with individuals who are healthy and have a low-risk lifestyle. For instance, smokers have to pay approximately double in premiums when it comes to signing up for a life insurance plan.

Why do smokers pay double of what a non-smoker pays? The reason is pretty obvious; cigarette smoking is one of the leading causes of lung cancer and other smoking-related diseases such as high blood pressure and risk of a heart attack. If you have smoked one or more cigarettes in last 6 months, you are likely to be categorized as a smoker by the insurance company.

Your medical condition and how you manage it plays a critical role in determining your premium. Some insurance companies may not consider one or two cigars a year in their evaluation process. If you are a smoker and determined to quit smoking, a financial advisor can always help you get a better insurance plan. There are a few companies that offer smokers incentive programs according to which you can buy an insurance product at smokers rates and, after that, if you quit smoking for 12 consecutive months, your premium is likely to drop down to that of a non-smoker. Moreover, you are likely to get back the difference in premiums for the last 12 months.

Smoking is probably one of the hardest habits to quit. In many cases, people require a number of attempts before they actually quit. Almost every smoker has to deal with smoking-related health complications as they get older. At a later stage in life, smokers need support to pay for their health care expenses.

Can you lie about smoking? When you submit a life insurance application, you will be asked categorically whether or not you have smoked within the last 12 months. You may be wondering if it is possible to lie in order to sign up for a cheaper premium plan. Lying about your smoking habit can be disastrous; you and your beneficiaries are likely to end up with nothing. Besides, it takes a simple medical test to determine whether or not you are a smoker.

It is possible that smoking tobacco could void a life insurance policy; for instance, when the cause of death is directly linked to smoking. Smoking without notifying your insurance company can also lead to complications. The good news for smokers is that they can legally qualify for life insurance discounts. Consult a financial planner who provides insurance planning services to learn more about insurance products and how you can get discounts on your premium.

About Kewcorp Financial

Kewcorp Financial is a wealth management and financial fitness company in Alberta who takes pride in helping individuals with their insurance and financial matters. Consult us today to streamline your financial matters!


Jim Kew

Financial Planner
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Scott Kew

Financial Planner
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