The reason why life insurance is more expensive for smokers than for non-smokers is quite
simple - non-smokers are generally healthier and live longer.
This is reflected in a large increase in premiums - on average premiums are 65% higher
than a non-smoker.
The insurance industry's definition of a smoker is:
"a person who used, smoked or otherwise consumed any kind of tobacco products during the
previous 12 months."
Some insurance companies have lengthened the qualifying period from 12 months to 5 years,
so if you've given up smoking during the previous 1 to 5 years, you will get a much cheaper
premium from an insurance company which uses the 1-year definition.
There is no avoiding the issue, all insurance companies ask questions on their Application
form about the type and quantity of tobacco products you use. This becomes a vital part
of their risk assessment.
Whether smoking really means a greater risk to the insurance company, especially if you
are relatively young, is a matter of contention. Pro-Smoking Pressure Groups argue that
smokers under the age of 40 have about the same probability of death as non-smokers, but
a 30 year old male can expect to be charged up to 56% more for a 25 year life insurance
policy than a non-smoker.
If you are a smoker, you really need to try your best to find the cheapest life insurance
premiums, as you will be paying a lot more than those who don't smoke.
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