How smoking affects your life insurance premiums
Being a smoker can increase your life insurance premiums by more than half because you are seen as a higher risk of making a claim. But by quitting, you can dramatically reduce the amount you pay, as we explain here.
Key takeaways
Smoking significantly increases life insurance premiums due to the associated health risks and reduced life expectancy
Life insurance companies define smokers as individuals who have used tobacco in any form within the last 12 months
Premiums vary based on how often you smoke and the type of tobacco product used
Smokers can potentially reduce their life insurance costs by quitting smoking, with most insurers requiring a smoke-free period of about 12 months before offering lower rates
How does smoking impact your life insurance premiums?
Smoking not only harms your health but also your finances, particularly when it comes to life insurance. This is because insurers regard smokers as high-risk due to the health issues they are prone to, which often result in reduced life expectancy compared to non-smokers. Life insurance premiums for smokers are considerably higher, sometimes double or more than those for non-smokers.
Smoker status | Average life insurance price |
|---|---|
Smoker | £27.97[1] |
Non-smoker | £19.88[1] |
Can smokers buy life insurance?
Yes, if you smoke this doesn’t mean you can’t buy life insurance. But you will pay more than someone who doesn’t smoke.
The cost of life insurance is based on lots of different factors, such as your age, and your general health, so these will also be looked at when an insurer calculates your premiums.
Specialist insurance brokers can offer help if you’re finding it hard to find a policy which is affordable.
If you’re given a quote for life insurance which is too expensive, you may want to consider over 50s life insurance. This is more suited to those with pre-existing health conditions as it doesn’t require any medical information.
However, the amount of money paid out is often capped and there are cases where people pay in more than is ever paid out.
How do insurers define smokers?
Life insurance companies have specific criteria to identify smokers. These vary among insurers but usually you will be deemed a smoker if you have used tobacco in any form during the previous 12 months, regardless of frequency. This could include cigarettes, pipes or vapes.
The use of nicotine replacement products like patches or gum might also influence this status.
Why does smoking affect life insurance?
The link between smoking and numerous health risks results in more frequent insurance claims. Conditions such as heart disease, lung cancer, and chronic bronchitis are more common among smokers, making them a higher risk for insurers.
This risk is mirrored in their life expectancy, which is generally shorter than that of non-smokers. In the insurance sector, a higher risk profile means higher premiums, as the likelihood of claims increases.
Do I need to tell an insurer that I smoke?
Yes, it’s important to be open and honest about your smoking habits. If you lie to an insurer about how much you smoke, or you aren’t completely truthful, this could invalidate your policy, leaving your dependents without financial support.
How can a life insurance company tell whether you smoke?
There are a few different ways in which life insurers can tell if you smoke, including:
You’ll be asked if you smoke when you apply for life insurance
An insurer may ask for medical details or for you to take a nicotine test to see how often you smoke
If you are a regularly smoker, you’ll usually pay more than someone who occasionally smokes. The type of tobacco product used also affects premium costs, with different products carrying varying risk levels
When is the best time to get life insurance for smokers?
Buying life insurance early is advisable for anyone, whether they smoke or not. That’s because premiums are generally lower for younger, healthier individuals.
If you start smoking after you’ve taken out a life insurance policy, or if you quit smoking, it’s essential to inform your insurer. This ensures your coverage remains valid and reflects your current situation, potentially adjusting your premiums and benefits.
Compare life insurance for smokers
For smokers, finding the right life insurance policy at a competitive rate is crucial. MoneySuperMarket offers a comparison tool that allows you to get life insurance quotes tailored for smokers. You can also add critical illness cover to see how it affects your premiums. Remember, honesty is paramount to ensure the validity of your policy.