If you’re a “smoker” and you’ve spent any time at all looking for an affordable life insurance rate as a “smoker”, you’ve probably already been told that…
“If you want to save money on your life insurance policy, just quit smoking!”
Which is great advice…
But that’s not going to help you out today, and for that “advice” to be of any use at all, you’re going to need to wait at least a year before you’ll see any real reductions in the price you’ll have to pay for your life insurance!
This is why…
In our article, we would rather focus on what you can do TODAY to save money on your life insurance.
So, let’s see if we can’t save you any money today!
When it comes time…
To helping individuals who “smoke” or use tobacco find a great life insurance rate, we really only have two options two options to pursue.
The first option is…
To be sure that we find a life insurance policy that is going to offer great pricing for the “rate” class you can qualify for…
And the second option…
Which is the lesser known option, involves understanding the individual underwriting guidelines of a great many life insurance companies and knowing how each company is going to “view” certain “types” of tobacco use.
When you choose to apply for a traditional term or whole life insurance policy, chances are, you’re not going to be asked if you’re a smoker. Instead, you’re going to be asked a question like:
“In the past 12 months, have you used any tobacco or nicotine products?”
This is because, in addition to being worried about actually smoking, life insurance companies are also worried about the harmful effects nicotine can have on the body.
But here’s the “catch”…
Not all insurance companies treat tobacco and nicotine use the same. So, in “theory” you may be considered a smoker by one life insurance company and earn a “tobacco” rate, while another insurance company may consider you a non-tobacco user.
At this point we feel it’s important to point out that most tobacco rates range about 2 to 3 times more expensive than “non-tobacco” rates. Which means that if you can “find” an insurance company that will allow you to qualify for a “non-tobacco” rate in spite of your tobacco use, you’re bound to save a considerable amount of money over “life” of your policy.
So, now the obvious question is…
“How can I earn a “non-tobacco” rate as a tobacco user?”
That’s easy provided that you know which insurance companies to apply with and… only use tobacco products which these insurance companies have “deemed” less harmful.
What “type” of tobacco products have some insurance companies deemed less harmful?
While all tobacco and nicotine products do poise a risk to one’s health, some insurance companies have decided to be more “lenient” in their underwriting when it comes to certain types of tobacco or nicotine use.
Types of tobacco use that may qualify for a “non-tobacco rate” may include:
- Chewing tobacco,
- And electronic cigarettes.
If you simply smoke cigarettes, you’re basically going to be stuck paying a “tobacco” rate unless of course you quit smoking for at least a year and then apply after one year from your last cigarette.
Which brings us to an important point…
Don’t lie on your life insurance application!
First off, there are many ways a life insurance company can discover that you’re not being honest with them.
- Detect nicotine during your medical exam.
- They can see that you’ve been prescribed a prescription medication to help you quit smoking within your prescription database check.
- They can discover previous life insurance application submissions to other insurance companies through the medical information bureau report (MIB).
- And they can learn about any previous tobacco use by reviewing your medical reports.
Second, an insurance application is a legal contract in which you are agreeing to be open and honest with the insurance company and they are agreeing to pay a death benefit in the event of your death. Now should you decide to lie on your life insurance application, you are potentially putting this contract at risk which is the last thing that you’ll want to do to your family!
Options for those who can’t qualify for a Non-Tobacco rate.
Now, since we’ve gone over some options for those who may be able to qualify for a non-tobacco rate without actually quitting their habit we figure it’s only fair to provide a few options for those who simply can’t avoid being labeled as a “tobacco user” for now.
So, if this describes you, you’re either going to need to do one of three things:
- First, you could change your habits and quit smoking or begin using some other “type” of nicotine product that would allow you to qualify for a non-tobacco rate (this option would take a year to accomplish),
- Second, you could simply accept the fact that you’re going to need to pay more for your insurance than a “non-smoker” would and purchase your life insurance as a smoker.
- Or lastly, you’ll need to consider applying for an “alternative” life insurance product that won’t ask whether or not you use any tobacco or nicotine products!
And yes, there are some “smaller” life insurance policies out there (generally ranging around $25,000 to $50,000) that won’t discriminate against individuals who smoke.
Now the good news is that…
Regardless of which option you chose, we here at InsuranceBrokersUSA have a ton of experience working with clients who are currently using tobacco and have specifically established relationships with several different insurance companies so that we can provide so great options for those regardless of what “rate class” they will qualify for!
So, what are you waiting for? Give us a call today and see what we can do for you!