Smokers may find it challenging to secure affordable life insurance coverage because insurance companies perceive them as risky.
Despite typically higher life insurance premiums for smokers, cost-effective options remain accessible.
Allstate, in particular, offers the most economical coverage, with an average monthly rate as low as $26.57.
KEY TAKEAWAYS
Smokers face an average monthly life insurance cost of $40.71, marking a 121% increase compared to the $18.39 monthly premium for a healthy individual.
Your life insurance rate is influenced by various factors, including age, gender, and the state of residence.
Being a smoker can result in doubled or tripled life insurance rates.
Exploring lower coverage options or securing insurance early can help mitigate premium costs.
navigating-life_63140488Comparison of Monthly Life Insurance Costs for Smokers and Nonsmokers
Male Gender:
The monthly expenses for life insurance premiums vary significantly depending on smoking habits.
Nonsmokers, on average, encounter a monthly premium of $18.39, whereas smokers face a higher average monthly cost of $40.71.
This translates to smokers bearing an additional monthly expense of $22.32 for life insurance, marking an approximately 121% increase compared to the rates for nonsmokers.
Monthly Life Insurance Costs for Smokers [Male]
| Gender | Term Length | Average Monthly Cost |
|---|---|---|
| M | 10-Year Term | $40.71 |
| M | 20-Year Term | $56.60 |
Monthly Life Insurance Costs for Nonsmokers [Male]
| Gender | Term Length | Average Monthly Cost |
|---|---|---|
| M | 10-Year Term | $18.39 |
| M | 20-Year Term | $25.56 |
Female Gender:
Life insurance premiums exhibit significant variations based on smoking habits.
Nonsmokers, on average, pay a monthly premium of $18.39, while smokers face a higher cost of $40.71 per month.
This indicates an additional monthly expense of $22.32 for smokers, reflecting an increase of approximately 121% compared to nonsmokers.
Monthly Life Insurance Costs for Smokers
| Gender | Term Length | Average Monthly Cost |
|---|---|---|
| F | 10-Year Term | $32.51 |
| F | 20-Year Term | $44.44 |
Monthly Life Insurance Costs for Nonsmokers
| Gender | Term Length | Average Monthly Cost |
|---|---|---|
| F | 10-Year Term | $15.56 |
| F | 20-Year Term | $21.28 |
Most Affordable Choice: Allstate
PROS
- A+ AM Best financial stability rating
- Extensive range of term lengths (10-40 years)
- Accessible 24/7 online chat support
CONS
- Elevated customer complaint rate
- No issuance of its own life insurance policies
COMPANY HIGHLIGHTS
With a 92-year legacy in the insurance industry, Allstate offers a diverse array of life insurance products catering to various needs.
For those seeking term life insurance, Allstate provides coverage from $100,000 to $50 million, with term lengths spanning 10 to 40 years.
While the company doesn’t directly underwrite its life insurance policies, it facilitates informed decision-making with multiple payment options and a plethora of online research materials.
Robust customer support, including 24/7 online chat, enhances the overall experience.
However, prospective customers should be mindful of Allstate’s higher-than-average customer complaint rate
Most Economical Choice for Young Adults and Seniors: GEICO
GEICO emerges as the most cost-effective option for both young adults and seniors in the life insurance market.
PROS:
- A++ AM Best financial stability rating
- Minimal customer complaints
- Access to no-exam products through partnerships
CONS:
- Does not underwrite its own life insurance policies
- Limited payment options
- Absence of whole or universal life products
COMPANY HIGHLIGHTS:
With an impressive 87-year presence in the insurance industry, GEICO collaborates with partners like Ladder to provide term life insurance.
While GEICO doesn’t directly issue its policies, it delivers flexibility
Most Cost-Effective for High Coverage: Transamerica
PROS
- A AM Best financial stability rating
- Extensive product diversity
- No-exam option available for high coverage
CONS
- Elevated customer complaint rate
- Absence of 24/7 online chat support
- Limited mobile app functionality, focused on retirement
COMPANY HIGHLIGHTS
With a rich 95-year history in the insurance industry, Transamerica offers a comprehensive range of life insurance products, encompassing term, whole, universal, and final expense policies.
Noteworthy for its emphasis on high coverage, Transamerica provides options ranging from $25,000 to $10 million, coupled with term lengths spanning 10 to 30 years.
The company distinguishes itself by issuing its own policies and facilitating multiple payment options.
Furthermore, it allows policyholders to convert from term to permanent policies.
While Transamerica secures a solid A rating for financial stability from AM Best.
It is essential to note its higher-than-average rate of customer complaints, along with the absence of 24/7 online chat support and a mobile app primarily focused on retirement.
How Smokers Can Secure More Affordable Life Insurance
While the rates offered by the aforementioned companies are already economical, there are additional strategies to potentially reduce premiums further for smokers.
Exploring various life insurance options and adopting specific practices can contribute to obtaining more budget-friendly coverage.
Opt for Annual Payments:
Choosing to pay your premiums annually rather than monthly can result in substantial savings.
By committing to an annual payment schedule, you may enjoy a more cost-effective life insurance arrangement.
Act Promptly:
Your age plays a crucial role in determining life insurance costs, particularly for smokers.
Enrolling in a life insurance policy as early as possible can help mitigate the impact of higher premiums associated with a smoking history.
Consider Affordable Term Life Insurance:
For smokers, exploring term life insurance can be a cost-effective approach.
This type of policy provides coverage for a specific duration, typically ranging from 10 to 20 years, offering fundamental protection.
You can customize premiums and death benefits based on your preferences and profile, especially with universal life insurance.
Quit Smoking:
A permanent solution to lower rates involves quitting smoking.
Some life insurance providers allow policyholders to retake the nicotine test after a smoke-free year, providing an opportunity to renegotiate rates.
Switching between providers could also result in standard rates after maintaining a smoke-free status for over 12 months.
Strategic Decision-Making
Securing cost-effective life insurance as a smoker requires strategic choices, involving thorough exploration of options, lifestyle adjustments, and deliberate coverage selection.
Discover how opting for a lump-sum payment, obtaining policies in advance, and comparing options can lead to long-term premium savings.
Navigating the Path to Affordable Coverage
By strategically navigating the life insurance landscape, smokers can unlock budget-friendly options tailored to their unique circumstances.
From payment preferences to timing considerations, a proactive approach ensures not only protection against potential scams but also the acquisition of coverage that aligns with individual needs and financial constraints.
Also read: Best Ebike Insurance
Frequently Asked Questions about Life Insurance for Smokers
1. Which company offers the most affordable life insurance for smokers?
The most economical life insurance provider for smokers varies based on factors such as age, gender, location, and coverage amount. Allstate as the overall cheapest insurer for the average smoker seeking a 10-year term and $250,000 coverage.
2. Can I still secure life insurance as a smoker?
Yes, life insurance is available for smokers in all 50 states. While smokers can obtain affordable life insurance quotes, it’s important to note that premiums for smokers are typically higher than those for non-smokers.
3. What qualifies as “smoking” for life insurance companies?
While cigarette smoking is the most common form, vaping, e-cigarettes, cigars, pipes, chewing tobacco, and use of nicotine or tobacco-replacement products like gum and patches may also classify an individual as a smoker in the eyes of life insurance companies.
4. Do life insurance companies test for smoking?
Life insurance companies employ paramedical tests to detect nicotine and cotinine levels, determining smoking status at the time of policy purchase. Providing false information about tobacco use is considered fraud, with potential consequences such as policy cancellation or benefits denial.
5. What if I start smoking after purchasing life insurance?
Starting to smoke after obtaining a life insurance policy does not void the coverage. The locked-in life insurance rate remains constant, meaning you will continue paying the same premiums even if you take up smoking after the policy is in force.
6. How long must I be smoke-free for reduced life insurance premiums?
Certain insurance providers may reevaluate and lower premiums if an individual remains smoke-free for more than 12 months. This can offer cost-saving opportunities for those who successfully maintain a smoke-free status.