One of the most important investments you will ever make on your family’s behalf is life insurance. Life insurance is one of the only ways we have to reassure ourselves that we can still ensure that our loved ones are taken care of in the unfortunate event something happened to us. Although finding life insurance can be an arduous task in and of itself, there are many things that can cause the process to be even more difficult. For example, life insurance and smoking cigarettes do not mix well.
Studies show that smoking cigarettes drastically reduces our life expectancy and are generally not good for our health. The last 50 years of data make this clear and insurance companies place great emphasis on these numbers when rating for life insurance premiums.
Because of these this, finding quality life insurance coverage at an affordable rate can be an almost impossible task. Life insurance for smokers can range from costing two to four times as much as a comparable life insurance policy for a non-smoker.
Smoking is a very expensive habit. If an individual were to smoke a single pack of cigarettes per day that cost $5 per pack, that same individual would accumulate an annual smoking cost of $1,825 to maintain his or her habit. Although it is obvious that this is a very costly habit, there are many hidden costs that make it even more expensive in the long run such as medical problems that must be paid for due to smoking-related complications, higher homeowner’s insurance rates, and higher health insurance rates.
All of these same cost factors come into play when it comes to life insurance and smoking tobacco. An individual who smokes can expect to pay at least twice as much for life insurance coverage than an individual who does not smoke simply because smokers have a much shorter life expectancy than non smokers, and the insurance carrier knows that a payout on the policy is much more likely to occur sooner than on a policy for a nonsmoker. Here we will discuss some things to keep in mind for smokers and recent ex-smokers that could help in finding affordable life insurance coverage.
Even as a smoker and regardless of your health status, anyone should be capable of finding quality and affordable life insurance coverage that will help them and their family in the future. In the event of your unexpected demise, your loved ones would be left to pay for your burial and any final expenses and debts that you may have left behind. Failing to carry the proper life insurance coverage could be one of the worst decisions that you could make for your family. However, it is possible to find quality life insurance coverage that will fit into your budget.
The most important thing to know about life insurance and smoking is that you have to find the right company and representative to help you on your journey. Although this is not usually a relationship that consists of daily communication, it is one of the biggest key roles you will need to be filled to help you on your way to ensure you get exactly what you need. One way you could begin your search would be to begin calling life insurance companies in search of quotes. However, there is definitely a better route that could be taken.
We have the means to make it simple for you to reach out to us and receive a large number of competitive life insurance quotes for smokers and ex-smokers to make the search as simple as possible for you and your family. Getting the lowest rate possible is dependent on a variety of factors including lifestyle, coverage amount, age, family medical history such as cancer or diabetes, and any other health factors and pre-existing conditions can also play a role. Another option that could be taken is choosing a life insurance company that does not require a medical exam, however, this will always lead to receiving a higher rate.
The point here is that the key to finding the best life insurance for smokers and ex-smokers, it is of the utmost importance that you get as many quotes as possible and compare as much as possible until your family’s needs and budget can be met.
Reduce the Length of the Term: The factor that could cause you to receive higher life insurance quotes could be the length for which you have chosen for the life insurance policy to last. It is important to find a balance between what you can afford and what term will be most suitable to your family’s needs.
Reduce the Amount of Coverage: One of the first things to keep in mind when attempting to receive a lower rate on life insurance as a smoker or recent ex-smoker is to do an evaluation of exactly how much money you will need to leave behind for your family and for how many years it will be needed by your family in your absence.
The way this is done is by calculating exactly how much it costs to run your household. After this is done, add in the remaining amount of your home mortgage that needs to be paid off by your family in your absence and any other factors including your children’s future college education.
The next step is to create a comprehensive list of all the things that are important to you and your family and find out exactly how much coverage is necessary to see that these things happen in your absence. Also, calculate how long your family would need the money necessary to pay off the remaining debts and any interest accrued by them over time.
Consider Annually Renewable Term: Although this is not a viable long-term solution, individuals interested in life insurance for a short time frame, or for those with a very tight budget may consider the annual renewable term as a viable option. Keep in mind that initially this may be the cheapest option, but over time the rate will increase every year as time goes on. Because of these things, it is better to purchase longer-term or permanent life insurance sooner rather than later.
Quit Smoking: If you plan to quit smoking in the very near future, not only is this the best thing you can do for your insurance rates, but it is one of the best decisions you can make for your family. If this is the case and getting life insurance now is something that you still feel that you need to do, a short-term insurance policy can fill this need. In this scenario, you can get life coverage now and also be able to apply for long-term or permanent coverage when you have completely stopped smoking and receive a much lower rate. Always remember that each year you remain tobacco-free, it will lower your rates more and more as time goes on. Usually, after just one year you will receive a Standard Non-Tobacco Rating with most life companies. Furthermore, after you have gone three entire years without using any tobacco, you will become eligible for the best rates available and not penalized by a smoking history.
In most scenarios, a smoker will have to have been tobacco and nicotine free for a full year to get a non-smokers insurance rate. In some cases, however, a smoker may have to have been tobacco and nicotine free for up to five years before some companies will offer a nonsmoker’s rate. After receiving a nonsmokers rating, the insured is not usually mandated to perform any further testing for nicotine use.
No two life insurance companies view smoking the same, because of this, the rates an individual receives when searching for life insurance and smoking cigarettes could be wildly different from one another. It isn’t very difficult to see why it is so important for you to get as many quotes as possible from as many companies as possible to find the proper life insurance policy that is going to fit your family’s budget and coverage needs. Our insurance agents are here to help you and your family get the most affordable and highest quality life insurance, because they deserve it. Don’t hesitate any longer on getting the life insurance protection that you and your loved ones need.