Even if a smoker knows that smoking is bad for his or her health, it is not an easy habit to break. If you are a smoker and have started looking into life insurance, it is normal to wonder whether or not it is a life aspect that will affect your premiums. Hopefully, this information can help.
Will You Be Rejected for Smoking?
Not all insurance companies will take on smokers; this is because there is a higher mortality rate within the term. It will depend on the type of life insurance you take. If you want term insurance, you may find it harder to get an affordable policy. If you want whole life insurance, it may be easier, depending on the company. You can talk with a professional, like Life Enrollers, for more information.
Will Insurance Premiums Increase?
If insurers are willing to risk you, they will want to make sure they gain enough for that risk. This is why they put premiums up for policies. Good Financial Cents states that those in their 30s should expect to pay two to three times as much as non-smokers. The site also says that those in their 40s will see their premiums raise three to four times more. Smokers aren't just more likely to have beneficiaries claim for death. Living smokers are more likely to claim for critical illness, if this is allowed on their policies. So the companies need to recoup that money somehow.
How Much Can You Smoke Without an Impact?
Surely, the more you smoke, the more likely you are to make a claim. That must mean that those who smoke more will see higher premiums. That isn't actually the case. Anyone who has smoked within the last 12 months is classed as a smoker, according to Money Supermarket. The insurance company is more interested in this fact rather than the amount you smoke in a day or week.
Can You Lie About Smoking?
It seems tempting to answer "no" to the question about smoking. This is a form of insurance fraud and you will invalidate your insurance if you do it. You may be caught out early on. Most companies will want you to get an independent exam, which will involve testing to see if you have used tobacco products recently. The companies can revoke your insurance and refuse to pay out for a claim if they decide you lied about smoking.
Smokers will find that their life insurance is impacted. In most cases, you will find your insurance premiums increase and in more severe cases you may be rejected. However, if you are considering quitting the habit, you may be able to renegotiate your policy with your provider.