You or someone you know may be looking for a good reason to quit smoking. If that person wants to protect their family with a life insurance policy and is a current smoker, this is definitely a good reason!
Some recent research sources estimate that the difference between a non-smoking and a smoking middle aged man trying to purchase life insurance can be as much as $2,000-$4,000. This is because life insurance policies will inevitably give better rates to customers that are considered low risk.
Since smoking causes nearly 90% of lung cancer deaths, there is good reason for life insurance companies to worry about providing insurance to a smoker. With this in mind, many companies are willing to insure the smoker, but for nearly double, or sometimes triple the cost of a non-smoker.
Keep in mind, though, that even if you quit smoking today after reading this article, it is unlikely your insurance rates will go down in the near future. Most life insurance companies will still consider you a smoker if you have smoked within the last 1-3 years.
If you have considered just not telling the life insurance company about your smoking habit, you may want to think again, as many companies will require you to have a medical exam before insuring you. Other companies do not require a physical exam until you reach a certain age, and if the company finds out then that you have been a smoker all along, your insurance might be dropped.
Remember that the hike in premiums for smokers doesn’t just stop at basic life insurance. They almost always spill over into health insurance premiums and will definitely spill over into long term care insurance policies.
It is easy to say that smoking only affects you and your health, but remember that it can also affect you financially, making it difficult to even acquire reasonably priced life insurance.
If you are a smoker, have recently quit smoking, or have a loved one that smokes, feel free to contact us if you have questions regarding life insurance policies and premiums.