The best life insurance companies for smokers in 2021

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If you smoke cigarettes, chew tobacco, or even use e-cigarettes your life insurance could cost two to three times more than it would otherwise, based on Policygenius quoting data in 2021. That’s because life insurance companies set your premiums by evaluating your health and lifestyle for risk, and nicotine use comes with known negative side effects.

Insurance companies evaluate your tobacco use with a nicotine test, and even after you quit you need to be nicotine-free for at least a year to qualify for nonsmoking premiums. Still, it’s important to be honest about your smoking, otherwise you could lose your coverage and leave your family without financial support when you die.

The best life insurance companies for smokers

The life insurance quotes you receive will depend on the frequency of your tobacco use, how long you’ve been a smoker, and your overall health. Life insurance companies almost always categorize you as a smoker if you:

• Smoke cigarettes

• Chew tobacco

• Vape (including marijuana)

Some providers might count smoking cessation products like nicotine patches and gum against you, too. Even though these are meant to help you quit, they’re picked up by routine nicotine testing.

There’s more flexibility for cannabis users and cigar smokers who don’t smoke every day. The perceived risk of marijuana users varies widely across providers. Cigar smokers who smoke less than one cigar per month (or less than 12 per year) could be eligible for nonsmoker premiums after a negative nicotine screening.

How much more expensive is life insurance for smokers?

Smoker premiums can be two to three times higher than nonsmoker premiums. The tables below reflect sample term life insurance premiums for a man and a woman at four different ages and in two health classes, Preferred and Standard, at both smoker and nonsmoker rates. The following quotes are for a $500,000 policy and a 20-year term:

Sample Preferred rates, nonsmoker vs. smoker:

Sample Standard rates, nonsmoker vs. smoker:

Each insurer weighs smoking habits differently when setting premiums. If you currently smoke or use other nicotine products, it’s important to get quotes from multiple insurance companies to find the most affordable policy. 

How smoking and nicotine use affect your life insurance rates

When you apply for life insurance, your insurance provider assesses your health and lifestyle during underwriting and assigns you a health classification based on the risk of insuring you. That risk determines your monthly or annual premiums. 

The four main health classifications are Preferred Plus, Preferred, Standard Plus, and Standard. Those with a more complex medical profile might receive a Substandard rating, also called a Table rating. Preferred Plus applicants receive the most affordable premiums, and prices increase from there.

Because nicotine use is extremely common and comes with proven long-term health risks, insurers also divide applicants into two broader categories: smoker (or tobacco) and nonsmoker (or non-tobacco). Even if you’re otherwise very healthy, receiving a Preferred Smoker classification earns you much higher premiums than a Preferred Nonsmoker applicant.

How do life insurance companies test for nicotine?

In an initial phone call, your insurance agent or broker will ask whether and how often you smoke or use nicotine. They’ll then confirm your answers with a nicotine test during a medical exam. 

Nicotine stays in your blood for up to three days, but cotinine—a byproduct of your body metabolizing nicotine—can last for longer than a week. Urine and blood testing can show signs of smoking more than one week after your last use. The life insurance medical exam will test for both nicotine and cotinine to determine whether you smoke or use other nicotine products.

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How former smokers can get nonsmoker rates on life insurance

There’s no partial credit for reducing your nicotine use. If you want nonsmoking rates from a life insurer, you need to permanently stop using tobacco.

While quitting cold turkey right before you apply for a policy might seem like a good idea, it won’t help you get better premiums. Nonsmoker premiums aren’t available for at least one year after you quit and you usually aren’t eligible for Preferred or Preferred Plus ratings until two to five years after quitting, according to 2021 Policygenius data from our partner insurers.

That said, some insurance companies treat former smokers more favorably in the underwriting process than others. An independent broker like Policygenius can help you find the right policy for your age, lifestyle, and health history, including past nicotine use.

The best life insurance companies for former smokers

Here’s how we rank the best life insurance companies for former smokers. Excellent denotes insurers that offer Preferred health ratings to former smokers who have quit in the last one to two years and Good reflects insurers who may offer Standard health ratings after one to two years. Fair marks providers who may not offer nonsmoker rates within two years.

Should you wait to apply for life insurance if you recently quit smoking?

If you’re in the midst of kicking a smoking habit, it’s possible that in a year, you’ll qualify for lower, nonsmoker life insurance premiums. But it can take several tries to give up smoking for good, and on average, life insurance rates increase by 4.5-9% each year that you delay applying.

If you have dependents or loved ones who benefit from your financial support, you should get a policy now. You can buy a term life policy and cancel your coverage without penalty after you’ve secured a more affordable policy or ask your insurer for a rate reconsideration once you’re tobacco-free for more than a year. 

If you don’t want to commit to a term policy, annual renewable life insurance can provide some coverage while you’re in the process of quitting, though it can become expensive over time since premiums increase each year.

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Why you shouldn’t lie about smoking on your life insurance application

If you lie about your nicotine use, pass the medical screening without it showing up in your system, and are issued a nonsmoker policy, you could be putting your family at risk. 

The first two years after your policy is in forceare the contestability period. If you die during that period, the insurance company can review your application materials to look for intentional omissions or misrepresentations.

If your insurer finds that you lied about something on your application—for example, saying you don’t smoke when you actually do—they can reduce the insurance payout or not pay out at all. If they discover a lie while you’re still alive they can cancel your policy, leaving your loved ones unprotected.

Is life insurance for smokers worth the cost?

As a smoker, you’ll likely pay more for life insurance than your nonsmoking peers. But understanding which products life insurers include in their definition of tobacco use and how they assess them during underwriting can help you find the right policy. 

Make sure to be forthcoming about your smoking history and frequency, otherwise you risk losing your coverage and financial protection for your loved ones. If you give up nicotine entirely, you may receive more affordable life insurance as soon as a year after your last use, and an annual renewable policy can offer some coverage while you’re in the process of quitting.