Life Insurance for Smokers: Here’s What You Need to Know

The fluctuating price of monthly premiums often prevents people from purchasing life insurance. This is especially true if you have a habit such as smoking. Even if you only smoke occasionally, you may pay much higher premiums for your policy compared to a nonsmoker.

Here is a look at life insurance rates for smokers and how that may impact you in the future.

Why Life Insurance for Smokers Is Unique

If you smoke regularly, the terms of your life insurance policy will differ compared to traditional policies. Insurance companies may view you as high risk because there are multiple negative side effects when you smoke for a long time. Even if you stop smoking and pursue an alternative such as tobacco or e-cigarettes, you will still likely pay a higher premium than people who don’t smoke.

Starting The Process

When you start looking for life insurance, you’ll be asked on the application if you smoke. You will also undergo a medical exam. Many of your bodily fluids will be analyzed to see if they contain any nicotine. You could also have THC (Tetrahydrocannabinol)in your system, which would be a clear sign that you have been using some type of substance in the last few days. To avoid the smoker designation, you need to stop using nicotine for a year before the exam. Even if you have quit smoking recently, the nicotine residue may still be in your body.

Term Life Insurance

One of the biggest obstacles for smokers is the cost of a life insurance policy. Due to the high cost of insurance rates, term insurance for smokers is considered a great option. Term insurance is regarded as an affordable policy. Smokers will receive coverage for a specified number of years. You can find a policy that covers you between 10 and 30 years. The policy also includes a payout that your beneficiary will receive once you have passed away. Once the term expires, you can start a new policy or look for an alternative type of coverage.

Guaranteed Issue Insurance

Guaranteed issue insurance is a unique option that you can purchase. Under the terms of this policy, there is no requirement that you have to undergo a medical exam to obtain coverage. This type of policy weighs factors such as your age and gender to figure out the type of coverage that you need. However, keep in mind that because this type of policy is seen as high risk, you may receive a relatively small death benefit.

Whole Life Insurance

Whole life insurance is another option to consider. Whole life insurance provides coverage over your entire lifespan until you pass away. You also have the opportunity to accumulate savings through this policy, which offers a financial incentive to choose this policy as well. While you will enjoy many benefits, keep in mind that your premium will be a little more expensive than term life.

Other Things to Consider

Be sure to shop around. Some insurance companies offer favorable rates of life insurance for smokers. Look for a versatile policy that allows you to update things and make changes.

Finding good life insurance rates for smokers can be a difficult, exhausting process. However, the task is not impossible.  Contact our agents at ISU-Wissink Agency today for all of your life insurance needs. Once you have the answers to all of your life insurance questions, making the right decision will be easy.