In this article I will discuss term life insurance for smokers,which life insurance companies have the best rates for smokers, and also discuss how you can lower your rates if you do quit smoking in the future. I’ll also give some examples of rates for term life insurance for smokers and compare pricing between life insurance with a medical exam and life insurance without a medical exam, specifically for smokers.
Life insurance is one of the best ways that you can protect your family if something tragic were to happen to you. These life insurance policies will give your loved ones the money that they need if you were to pass away. Your debts and final expenses could leave your family with hundreds of thousands of dollars of debt, which can make an already difficult situation much worse, but that’s where your life insurance coverage comes in.
When you apply for life insurance coverage, the company is going to look at dozens of different factors when they are deciding how much to charge you for your insurance coverage. They are going to review everything from your age to your hobbies. One of the biggest factors that they are going to look at is if you use any type of tobacco.
One of the most common reasons that smokers don’t get life insurance is because they assume that the insurance policy is going to be too expensive, or that they will be declined for coverage. In most cases, this couldn’t be further from the truth.
There are several affordable options of life insurance policies for smokers!
Term Life Insurance For Smokers – Health Ratings
There are two main health ratings that smokers will get when applying for life insurance. Preferred Tobacco and Standard Tobacco.
Most of the time I see smokers getting Standard tobacco rates. If you exercise regularly, are not overweight, and only smoke a few cigarettes a day, then you may have an opportunity to get a preferred tobacco rate. If you have other health conditions, such as diabetes for example, then you will be considered a high risk life insurance case, and will get a sub-standard rating and pricing would be higher than standard tobacco rates.
Term Life Insurance For Smokers – What If You Quit In The Future?
Many people ask me if they could get their rate lowered if they quit smoking in the future.
The answer is that there are life insurance carriers that will allow you to retest with a urine sample and show that you have indeed quit smoking. You would have to not have smoked for a period of 12 months, and you would be allowed to retest following 1 year of having your life insurance policy.
Alternatively after 12 months of quitting smoking, you could also apply for coverage with another carrier to get non-smoker rates.
Life Insurance For Smokers – What If I Already Quit?
If you already quit smoking, it’s important to apply with the right life insurance company. What does that mean?
While all companies will offer you non-smoker rates if you are smoke free for 12 months, not all will offer you the best non smoker rates. Non smoker life insurance health ratings range from Preferred Plus, Preferred, Standard Plus, and Standard.
As an example if you are smoke free for 12 months all companies will offer you Standard Non Tobacco rates. However if you are smoke free for 3 years, you can qualify for Preferred Plus rates with Banner Life Insurance, while you would have to be smoke free for 5 years to qualify for the same health rating with Protective Life Insurance. This is why it is important to work with an independent life insurance agency like Chooseterm.com – we work with over 30 life insurance companies, and know which life insurance company to match you up with so that you get the best rates.
If you’re looking to get the most affordable life insurance policy, quitting smoking is one of the best ways that you can do that. If you’ve been looking for extra incentive to kick the bad habit once and for all, it could save you thousands of dollars on your life insurance plan. In fact, smokers pay twice as much for life insurance compared to non-smokers.
Term Life Insurance For Smokers – What Does It Cost?
So what does term life insurance for smokers actually cost? I’ll give some examples below; however if you would like to get a quote specifically for you, use our instant online quote tool below this article.
Example of $250,000 20 Year Term Life for 30 Year Old Smoker – Male
Life Insurance Companies with the best rates for smokers
- SBLI $49.37 Monthly
- Banner Life $50.75 Monthly
- Transamerica $50.75 Monthly
- Protective Life $60.03 Monthly
- American General $60.44 Monthly
- Prudential $60.75 Monthlly
- ING Reliastar $61.91 Monthly
- MetLife $65.84 Monthly
- Mutual of Omaha $66.97 Monthly
- Genworth $68.69 Monthly
- No Medical Exam Rate for 30 Year old Smoker – $85.70 Monthly
As you can see, the best pricing is with SBLI, Banner Life and Transamerica.
$250,000 20 Year Term Life for 40 Year old Smoker – Male
Best Smoker Rates:
- SBLI $91.57 Monthly
- Transamerica $92.75 Monthly
- Banner Life $98.22 Monthly
- ING Reliastar $99.31 Monthly
- Protective Life $102.02 Monthly
- Mutual of Omaha $103.24 Monthly
- American General $104.54 Monthly
- Prudential $104.63 Monthly
- MetLife $112.41 Monthly
- No Medical Exam Rate for 40 Year old Smoker $177.26 Monthly
In the above case, for a 40 year old the best rates are with SBLI and Transamerica.
$250,000 20 Year Term Life for 50 Year Old Smoker – Male
Best Smoker Rates:
- Transamerica $221.16 Monthly
- Banner Life $224.00 Monthly
- Mutual of Omaha $228.73 Monthly
- SBLI $230.12
- American General $231.44
- Prudential $231.53
- ING Reliastar $231.88
- MetLife $240.66
- Protective $251.48
- No Medical Exam Rate for 50 year old smoker $374.32 Monthly
In this case the best rates would be with Transamerica and Banner Life.
Smoking Versus Non-Smoking Rates
According to the U.S. Centers for Disease Control, more than 440,000 Americans die due to tobacco use every year. More than eight million more are currently living with a serious health condition caused by tobacco use. Unfortunately, 46.6 million continue to smoke, and another 88 million nonsmokers are exposed to secondhand smoke thanks to living with smokers.
Decreased Life Expectancy for Smokers
These statistics outline a stark reality: that life expectancy can be cut short for those who choose to smoke. The gap between smokers and nonsmokers can be as much as 10 years. That decreased life expectancy can come with extreme financial costs in the form of increased medical bills, lost productivity and increased health and life insurance premiums. In fact, life insurance premiums for smokers can be 50 to 65 percent more than rates for nonsmokers.
Avoiding Increased Premiums as a Smoker
Many insurance companies request medical exams, which require blood, urine and other laboratory tests that will identify trace amounts of nicotine and identify smokers. If an individual is identified as a smoker after death, his or her family’s policy may be rescinded, which means the claim might be refused.
All forms of tobacco use are considered to increase risk, including pipe smoking, cigar smoking, cigarette smoking and even the use of nicotine gum and lozenges. The best way to reduce risk and achieve a lower rate is to quit smoking altogether. Most insurance companies require applicants to be tobacco free between six months and five years in order to qualify for nonsmoking rates.
Many insurance companies only offer nonsmoking rates to applicants who have never smoked. However, smokers who are in otherwise good health may still be able to achieve good life insurance rates if they are able to maintain healthy weights, healthy cholesterol readings and have a history of good overall health. So-called preferred smokers may be offered rates 25 percent lower than standard smokers.
Calculating Your Life Insurance Needs
Aside from getting a life insurance policy, it’s vital that you purchase enough protection for your family. Before you apply for a plan, you’ll need to calculate your life insurance needs to guarantee that your family has the insurance that they need. There are several different factors that go into adding up that number.
The first thing that you should look at is your debt and final expenses. The primary goal of your life insurance plan is to give your loved ones enough money to pay off your mortgage, funeral expenses, and all of the other bills that they would be responsible for.
The next number to look at is your paycheck. The secondary goal of your plan is to replace your salary if you were to pass away. If you’re one of the main income earners in your house, your family would suffer if something tragic were to happen to you. Your life insurance will give them the money to replace your monthly income without having to sacrifice their standard of living.
Getting Better Insurance Premiums
As a smoker, you can expect to pay much more for your life insurance policy versus what a nonsmoker is going to pay for the same amount of life insurance. Just because you’re a smoker doesn’t mean that your life insurance premiums have to break your bank every month. There are several things that you can do to secure lower insurance rates from the company.
The best way to ensure that you’re getting the best rates is to work with an independent insurance agent. Unlike a traditional agent, our independent agents work with dozens of highly rated companies across the country. Every insurance company is different, which means that you could get drastically different insurance rates depending on which company that you choose. Some companies are much more favorable towards smokers than other companies. Finding the perfect insurance company could be the difference in getting an affordable plan or getting declined for life insurance.
Life insurance is the best investment that you’ll ever make for your loved ones. If you have any questions about getting life insurance for smokers, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan to meet your needs.
You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the life insurance protection that your family deserves. It’s our mission to ensure that you’re getting the best plan to meet your needs at an affordable price. Contact one of our agents and be can get the process started today.
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