Life Insurance for Smokers: What’s the Prognosis?

Life Insurance for Smokers: What’s the Prognosis?

Smoking is probably one of the worst decisions for your health. In addition, life insurance for smokers in the UK can be very expensive… And don’t think that you can get away with lying, either. If you are a smoker, it’s best to understand just what it might cost you. This is not only health-wise – but financially as well.

life insurance for smokers

At first it may seem unfair that life insurance for smokers is somewhat higher – but there is a very good reason for this. According to statistics, smokers are more likely to claim on their policies due to being at risk of disease and death. So, in order to get the same cash payout as a non-smoker, a smoker will have to pay higher premiums.

Life Insurance for Smokers vs. Non-smokers: How does it compare?

In comparing life insurance for smokers vs. non-smokers, there is a significant difference when it comes to premiums. SunLife.co.uk made a quick comparison of a smoker and a non-smoker who both took out a family life insurance policy. With the assumption that both were still living at the end of the term, it turned out that smoker paid over 75% than the non-smokers in premiums.

 

Note: If you consider yourself an “occasional” smoker, you are still counted as a “smoker” by life insurance companies. In fact, life insurance for smokers makes absolutely no distinction between regular and occasional tobacco users.

What About E-Cigarettes and Life Insurance?

In the UK, over 2.8 million adults use e-cigarettes (or “vape”). In general, it is believed that there are fewer risks involved with e-cigarettes. However, many life insurance companies will still count vapers as smokers. This reason for this is that it is early days for vapers: there’s no telling what studies will find out in a few years.

Life Insurance for Smokers: Lie or quit?

Since life insurance for smokers tends to be so much higher, there are many people who would consider simply lying. It can work in the short-term: you will end up paying lower premiums. However…

    • Insurers can ask, at any time, for a urine/saliva test to check if you smoke.
    • Spot checks with your GP can also be done.
    • In addition, being dishonest could be devastating for your family: should you make a claim and your insurer decides to further investigate, your cash payout could be significantly reduced, or cancelled completely.

Luckily, life insurance companies consider you a non-smoker if you’ve been tobacco and nicotine-free in the last year. After avoiding smoking for a year, you can contact your provider and see if they will reduce your premiums.