Why Smokers Have to Pay More for Life Insurance

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Introduction

For smokers, getting life insurance policy can be a bit of a challenge. Unlike non-smokers, smokers have to pay more for their life insurance premiums. This pricing disparity has left many smokers wondering why they have to pay more for the same coverage. In this article, we’ll explore the reasons why smokers have to pay more for life insurance and what they can do to reduce their premiums. 

Why Smokers Have to Pay More for Life Insurance

  1. Increased Risk of Health Problems

Smoking has been linked to a number of health problems, including heart disease, lung cancer, and stroke. As a result, smokers are considered to be a higher risk for insurance companies than non-smokers. Because of this increased risk, insurance companies charge smoker’s higher premiums to compensate for the increased likelihood of having to pay out a claim.

  1. Higher Likelihood of Premature Death

Smokers are also more likely to die prematurely than non-smokers. According to the Centres for Disease Control and Prevention, smoking is the leading cause of preventable death in the United States. Insurance companies take this into consideration when pricing policies for smokers, as they have to factor in the increased likelihood of having to pay out a claim earlier than they would for a non-smoker.

  1. Longer Life Expectancy of Non-Smokers

Non-smokers typically have a longer life expectancy than smokers. This means that insurance companies can spread out the risk over a longer period of time for non-smokers, which allows them to charge lower premiums. Smokers, on the other hand, have a shorter life expectancy, which means that insurance companies have to charge higher premiums to compensate for the increased risk of having to pay out a claim earlier.

  1. Increased Healthcare Costs

Smoking-related health problems can be very expensive to treat. Insurance companies take this into consideration when pricing policies for smokers, as they have to factor in the increased healthcare costs associated with smoking-related illnesses. This, in turn, leads to higher premiums for smokers.

  1. Higher Likelihood of Making a Claim

Smokers are more likely to make a claim on their life insurance policy than non-smokers. This is because smoking is linked to a number of health problems that can lead to premature death. As a result, insurance companies have to charge higher premiums to compensate for the increased likelihood of having to pay out a claim.

FAQs

  1. Can smokers still get life insurance?

Yes, smokers can still get life insurance, but they will likely have to pay higher premiums than non-smokers.

  1. How much more do smokers have to pay for life insurance?

The amount that smokers have to pay varies depending on the insurance company and the individual’s health history. However, smokers can expect to pay at least 25% more than non-smokers for the same life insurance coverage.

  1. What can smokers do to reduce their life insurance premiums?

Smokers can reduce their life insurance premiums by quitting smoking, improving their health, and shopping around for the best rates.

  1. Is it worth it for smokers to get life insurance?

Yes, it is still worth it for smokers to get life insurance. Even though they may have to pay higher premiums, life insurance can provide financial security for their loved ones in the event of their premature death.

Conclusion

In conclusion, smokers have to pay more for life insurance because they are considered a higher risk by insurance companies. Smoking is linked to a number of health problems that can lead to premature death, and smokers are more likely to make a claim on their policy than non-smokers. As a result, insurance companies charge smoker’s higher premiums to compensate for the increased likelihood of having to pay out a claim.

However, smokers can take steps to reduce their life insurance premiums. Quitting smoking is the most effective way to reduce premiums, as insurance companies consider non-smokers to be a lower risk. Improving overall health through exercise and healthy eating habits can also help reduce premiums. For calculating the premium you can use life insurance calculator.

Shopping around for the best rates is also important for smokers. Different insurance companies have different underwriting policies, and some may offer more favourable rates to smokers than others. It’s important to compare rates from multiple companies to find the best deal.