If you are an occasional or consistent smoker, you may want to consider cutting the habit. While avoiding smoking certainly helps boost your overall health and well being, eliminating tobacco products from your daily routine can also help eliminate excess life insurance costs.
Smoking and Life Insurance Costs
Life insurance policy rates are determined and calculated upon the evaluation of many different variables. While the terms of coverage certainly influence the cost of the policy, the risk of one’s lifestyle, career, and / or habits can also play a role in the rates. In regards to smoking, life insurance companies tend to charge higher rates for individuals who choose to smoke, as the habit of smoking results in a higher mortality rate when compared to non-smokers. If you regularly smoke, or if you occasionally indulge in a tobacco product from time to time, be cautious and aware of the potential impact these choices may have on your life insurance plan:
- Smokers are typically charged higher rates, however, some providers may categorize clients into one of two categories: moderate smoker or heavy smoker. A moderate smoker, if observed by your provider, generally refers to an individual who only smokes a set limit of cigarettes per day (this limit is determined by the insurance provider). Heavy smokers will usually be charged more than moderate smokers, while non-smokers will most commonly not have to pay an extra costs related to the risks of tobacco.
- Most life insurance companies require policy holders to provide information about any tobacco-related / nicotine-related products. In recent years, almost all life insurance companies require policy holders to report their use of chewing tobacco, cigars, and so forth.
Kicking the Habit and Cutting Your Costs
If you have decided to quit smoking, then find out how your decision to cut the habit can lower your life insurance rates. Many life insurance providers will reassess your life insurance rates if you can prove that you have quit smoking for a minimum amount of time (generally one year). If you meet the terms of your provider’s regulations, then you should be able to take advantage of greater policy savings.
