Why Insurance Companies Hate Smokers

Cancer moon by See ming LeeA study from the University of Toronto found that those who’ve never smoked live, on average, a full decade longer than lifetime smokers.

However, there was also good news for smokers in the same study: those who quit smoking by age 44, on average, die only one year earlier than someone who has never smoked.

Saying insurance companies hate smokers may be a little much, but there definitely’s an industry bias against them.

Younger smokers can pay more than double the premium that equally healthy non-smokers pay.

The price differential peaks at about age 55 (with smokers paying almost three times the rate of non-smokers),  and then the premium differential closes slightly for older applicants.

Smokers get a break when it comes to permanent life insurance policies. The price difference for a smoker or non-smoker on many permanent life policies is often as little as 10% to 20%.

“Smokers may get a very good value from selected creditor insurance plans,” says Chantal Marr, president of LSM Insurance. “Many of these plans use a blended non-smoker and smoker rate, which means that non-smokers are paying a higher premium than they normally should and smokers are paying a much lower premium than they normally should. Certain direct-sold guaranteed issue plans also offer blended non-smoker and smoker rates.”

Shopping for life insurance as a smoker requires careful research. Certain nuances in the market can provide good value, but the trick is knowing where to look for them.

Posted in news Tagged with:
2 comments on “Why Insurance Companies Hate Smokers
  1. tucson life insurance says:

    Good Question 🙂 Because smokers have mostly ongoing health problems and have a shorter life than non-smokers, making them more of an insurance risk for any insurance company. Therefore, it has a serious impact on the cost of life insurance too.

    • No Medical Life Insurance says:

      Thanks for sharing. Some carriers do offer preferred rates for smokers in good health but they are still more expensive than non smoker rates.

      There is also a smaller gap in pricing for smokers in Permanent Policies.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Free, no-obligation life insurance quote for you

* - required field

Already leaving? Just one thing...

Get the best articles, carefully chosen for you, regularly to your email box!



Many thanks for your subscribtion!

Get the best articles, carefully chosen for you, regularly to your email box!


  • Welcome into our insights and tips center.
  • Your email has been successfully added to our newsletter list.
  • Please check your email (incl. spam folders) for a confirmation.

Did you find this article insightful?

Get the best articles, carefully chosen for you, regularly to your email box!



Many thanks for your subscribtion!

Get the best articles, carefully chosen for you, regularly to your email box!


  • Welcome into our insights and tips center.
  • Your email has been successfully added to our newsletter list.
  • Please check your email (incl. spam folders) for a confirmation.