It’s no secret that smoking comes with its health implications. But that doesn’t stop millions of us partaking in the habit on a daily basis.
However, the associated health implications bring with it the increased need for arranging life insurance. Whilst it is rare for smokers to be declined cover on smoking alone, there are a number of ways the habit can affect your cover.
When arranging your cover, smokers should take particular note of the following 3 things…
1) Lying About Your Habit Could Cost You Your Pay Out
If it is discovered you have lied about smoking during your life insurance application, your loved ones can be declined a payout.
When arranging life insurance, smoking will be taken into account when determining the level of risk you pose to the insurer.
You will be required to provide information on whether or not you smoke, how many a day you smoke and how long you have smoked for. Those with a higher and more frequent intake will be charged more for their cover on a monthly basis.
As a result of increased premiums, it can be tempting to lie about your habit, whether that be denying that you smoke in the first place or reducing the amount you smoke on a daily basis. But whilst this can save you a few precious pennies in the short term, it could cost your loved ones large in the long term.
If you were to pass away during the first two years of your life insurance cover, the insurance provider can request an inquisition into your death. This allows them access to your medical records and/or post-mortem details.
If it were deemed from these details that you had in fact lied during your application regarding smoking, a payout to your loved ones could be declined.
Furthermore, death from a smoking related illness, regardless of timeline during your cover, may result in a decline of payment if your habit was not fully disclosed during the application process.
Therefore, to ensure your selfless investment is not wasted, it is always best to be forthcoming and honest when asked questions about your smoking habits during your application for life insurance.
2) Quitting Won’t Instantly Class You As A Non-Smoker
When in the market for arranging life insurance cover, it can be tempting to quit smoking to secure more favourable premium costs. However, life insurance providers do not class you as a non-smoker until you have quit for a certain period of time – this is usually 12 months.
Therefore, to class yourself as a non-smoker during the life insurance application process you will need to have ceased smoking for at least 12 months. Lying about this can cause the implications detailed above.
Furthermore, smoking in the eyes of an insurer does not extend to tobacco products alone. You will still be classified as a smoker in terms of life insurance if you have consumed any tobacco or nicotine replacement products during the past 12 months. This includes vaping, patches and gum also.
When looking to quit smoking for the purpose of arranging life insurance, it can be tempting to delay taking out cover until you have reached the 12-month mark – But smoking isn’t the only factor to inflate premium prices.
The cost of premiums is calculated by the level of risk you pose to the insurer, therefore, the longer you delay arranging cover the more your premiums will cost due to your increased age.
As a result, it is always best to arrange life protection as soon as possible. Some insurers will take into account that you have recently quit smoking and will adjust your premium costs once 12 months has been reached.
3) You Could Pay Up To 50% More Than A Non-Smoker
As discussed, smoking will increase the cost of your premiums, but the later in life you smoke, the higher the risk of health implications. Therefore, the cost gap between smokers and non-smokers increases with age.
A 30-year-old smoker is likely to pay an average 33% more on a monthly basis than their non-smoking counterpart, whilst this increases to 50% for a 50-year-old smoker.
This highlights the importance of arranging life insurance cover as young as possible, especially if you smoke.
All life insurance providers are different and the emphasis they place on smoking will differ. Therefore, as a smoker arranging life insurance cover it is essential to compare multiple quotes to secure the best deal.
A great way to compare multiple quotes for free is to use a comparison website or an FCA regulated broker, such as Reassured.
Life Insurance For Smokers Is Possible
As you can see arranging life insurance as a smoker is very possible, but you will need to be prepared to pay more for your cover.
Comparing quotes can help you secure the best deal, and quitting smoking can result in more favourable premiums in the long run.
So, why not seize the day and enquire about life insurance protection to secure the financial security of your loved ones, whatever the future may hold.