Best Life Insurance Policies for Smokers
Before we have a look at what life insurance options are available for smokers, let’s explore what insurance companies consider a “smoker” to be.
During the application process, you will be asked whether you smoke. Regardless of your answer, life insurance companies will still require you to partake in a medical exam for most types of insurance. During the exam, a sample of blood, saliva, or urine will be taken and analyzed for traces of nicotine or cotinine.
Along with these chemicals, any signs of THC in your system will be clear indications that you have recently used cigarettes, chewing tobacco, cigars, vaping pens, pipes, or marijuana and will result in you being labeled as a smoker.
For potential policyholders who have recently quit smoking, there is still the possibility that nicotine residue will be found in your body. To be fully considered a non-smoker, you must be nicotine-free for at least one year.
This also goes for anyone who is trying to quit smoking by using items such as nicotine gum or nicotine patches. The medical exams that some insurers require will pick up on the nicotine in your system, even though you’re trying to quit.
Consumers who find themselves classified as smokers may be wondering what the best type of life insurance for them is. Luckily there are several policies available that will provide you with comprehensive coverage. Options such as term life insurance, whole life insurance, and guaranteed issue life insurance often provide the most value for smokers.
Term Life Insurance
As mentioned before, one of the biggest struggles facing smokers who want to purchase life insurance is the actual cost of a policy. In most cases, insurance rates are sometimes two or three times higher when compared to non-smoker rates. This is why a term life insurance policy is an appealing product for smokers.
Term insurance is an affordable life insurance product that will provide smokers with coverage for a set number of years. Typically, policies range from 10 to 30 years and include a payout that will be given to a beneficiary upon your passing. It is important to keep in mind that once the term is up, you will need to either buy a new term policy or seek new coverage.
Whole Life Insurance
Another viable option for those classified as smokers is a whole life insurance policy. What makes this plan different from term life insurance is the length of coverage. With whole life insurance, you will remain covered until your passing, as long as your premiums are paid.
In addition to lifelong coverage, there is also a savings component that comes with whole life. For this reason, some people will also use the product as a part of their overall financial plan. Even though there are many benefits to whole life insurance, policies tend to be much more expensive than term life.
Guaranteed Issue Life Insurance
One of the most unique options available is a product known as guaranteed issue life insurance. With this type of policy, there is no requirement for a medical exam or health screening, making it appealing to those with existing health conditions and smokers.
Unlike other life insurance policies, guaranteed issue life insurance will look at factors such as age, gender, and amount of coverage to base your premiums on. Since there is a higher risk for an insurance provider to offer plans like these, the death benefit tends to max out around $25,000.
With so many options available to you, it can be hard to compare quotes from an insurance agent or multiple insurers. That is why Insurify makes it easy to quickly complete the life insurance application and browse quotes from up to 20 reputable insurers all in one location.