Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Depending on the company the premium increase for smoking may be roughly 40-60% of the regular premium. It seems the industry is not unsure that smoking causes premature death of insureds. The pricing reflects the database insurance companies use for underwriting. One thing to consider with a smoker's policy it doesn't have to stay that way forever. You can quit smoking and save money by having them reclassify you as a nonsmoker. Depending on the company anywhere from 1 to 3 years from quiting.
Co-Founder, Coastal Financial Partners Group, California
Smoking affects life insurance rates but how much depends on other health and lifestyle factors. In general, the premium for term life insurance for people in their thirties and forties is three times more for tobacco users than for non tobacco users. The factor widens on older individuals. For permanent (cash value) policies the difference is not as great.
The kind of smoking or tobacco use affects rates, too. In recent years, a few innovative insurance companies have been offering non tobacco rates to cigar smokers and users of smokeless tobacco making their tobacco class rates effectively cigarette user rates.
Celebratory cigar use e.g. once or twice a year at weddings, may even qualify at such innovative insurance companies for preferred non tobacco premium rates.
Founder, Abrams Insurance Solutions, Inc., San Diego, CA
A smoker rating can cause a major increase in premiums. For example, a 40 year old male shopping for a $500,000, 20 year term, would be quoted about $64.25 per month at standard non-tobacco rates. If that same insured was rated as a standard smoker, his monthly premium would be $177.92 per month.
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The kind of smoking or tobacco use affects rates, too. In recent years, a few innovative insurance companies have been offering non tobacco rates to cigar smokers and users of smokeless tobacco making their tobacco class rates effectively cigarette user rates.
Celebratory cigar use e.g. once or twice a year at weddings, may even qualify at such innovative insurance companies for preferred non tobacco premium rates.