Buying life insurance as a smoker in Canada can be intimidating, as insurance companies view smokers as higher-risk clients. However, it’s important to note that not all insurers treat smokers equally. Some life insurance providers offer more favourable rates than others, making it crucial to identify the insurer that offers the best terms for smokers.
In this blog post, we’ll shed light on the impact of smoking on your life insurance and provide valuable insights into what you can anticipate when seeking and applying for a life insurance policy as a smoker.
Whether you’re currently searching for life insurance tailored for smokers or simply curious about how your smoking habit affects your coverage, this post aims to provide you with the information you need.
Can I Get Life Insurance For Smokers?
Absolutely. Smokers can obtain coverage, albeit at a higher cost than non-smokers. It’s important to dispel the misconception that smokers are automatically ineligible for life insurance.
If you smoke, use tobacco products, or vape, you may wonder if it’s possible to secure life insurance. While it may seem daunting, rest assured that options are available for individuals with smoking habits.
In Canada, insurance companies offer specialized rates for smokers, which are noticeably higher than the standard rates offered to non-smokers. Typically, smokers expect to pay between two to five times more in life insurance premiums.
When applying for life insurance, you will be asked about your smoking habits, and it’s crucial to answer truthfully. Insurance policies come with a contestability period of two years, during which your insurer has the right to investigate and potentially revoke your policy if they find any misrepresentations in your application.
If, unfortunately, you pass away within this two-year period, and the insurer discovers that you provided false information regarding your smoking status, they can rescind your policy and deny your beneficiaries access to the death benefit.
Furthermore, the insurance company may request you undergo a medical examination, including blood and urine tests. These tests help the insurer accurately assess your smoking habits and determine the appropriate premium for your policy.
How Does My Smoking Habit Affect Life Insurance?
In Canada, approximately 4 million people smoke cigarettes, and tragically, about 45,000 of them lose their lives due to smoking-related issues each year. Smoking significantly affects health, leading to conditions such as cancer and heart disease, with lung cancer being the most notorious consequence.
In fact, it claims more lives than any other type of cancer. It’s important to note that most lung cancer cases occur in individuals who either currently smoke or have smoked in the past.
When it comes to life insurance, your life expectancy is a crucial factor that insurers consider when determining your policy’s cost. The earlier you are expected to pass away, the riskier it becomes for the insurance company.
Unfortunately, smokers typically experience a reduction in their life expectancy, losing approximately nine years compared to non-smokers. Shockingly, around 21% of deaths in the past decade can be attributed to smoking-related causes. Given this added risk, insurance companies adjust their premiums for smokers accordingly.
This is why life insurance premiums for smokers are significantly higher than those for non-smokers with similar age, gender, and health status. On average, smokers expect to pay two to five times more for life insurance than their non-smoking counterparts. This price difference reflects the increased risk associated with smoking and the likelihood of a shorter lifespan.
So, if you’re a smoker, it’s crucial to be aware of the impact your habit has on your life insurance costs and consider taking steps towards quitting for both your health and financial well-being.
Can I Lower My Premiums as a Smoker?
Yes, you can definitely reduce your life insurance premiums if you quit smoking. Quitting smoking not only benefits your health but can also open up better life insurance options for you.
In the year you decide to quit smoking, you’ll experience a significant improvement in both your health and financial situation. However, it’s important to note that this positive change may not immediately reflect in your life insurance premiums.
The insurance company will require proof that you have refrained from smoking or using tobacco products for at least 12 months. You’ll need to formally declare that you no longer smoke, consume cigars, cigarettes, chew tobacco, or use nicotine patches or gum.
Furthermore, you’ll likely need to confirm your non-smoking status through a medical underwriting process, which often includes a urine test. This test checks for the absence of nicotine or cotinine in your system. Additionally, the insurance company will verify that there have been no significant adverse changes in your health status.
Once all these steps are completed, you may become eligible for non-smoker rates, resulting in lower life insurance premiums for you.
What Other Factors Affect Life Insurance For Smokers?
When the topic of smoking arises, many people immediately think of cigarettes. However, it’s crucial to recognize that life insurance companies consider various factors beyond traditional cigarette use. Here are some other products and considerations that can affect how insurers classify you:
- Vaping: Insurance companies thoroughly assess the health implications of vaping. Some of the carcinogens found in vaping have long-term effects on users’ health. Therefore, vaping, electronic cigarettes, and the flavoured tobacco products associated with them are typically treated as equivalent to smoking.
- Marijuana and Cannabis: In Canada, recreational marijuana use has been legalized. However, how insurance providers classify cannabis users has evolved. In the past, recreational marijuana smokers were often categorized as smokers by insurers. But that’s no longer the case. Instead, insurers usually inquire about the quantity of marijuana consumed. Heavy marijuana usage or mixing marijuana with tobacco may still be considered smoking.
How To Find The Affordable Life Insurance For Smokers
Smokers often face different rates than non-smokers, even when sharing similar health and lifestyle profiles. However, there are strategies to secure a better life insurance rate if you’re a smoker. Here’s what to consider when seeking out the top life insurance options for smokers:
- Seek Affordable Premiums: In Canada, some insurance companies offer more competitive premiums for smokers, especially if your smoking habits are occasional or don’t involve cigarettes. To find the best rates, it’s crucial to shop around and obtain quotes from multiple insurers. This ensures you’re getting the most favourable premiums available.
- Explore Premium Reduction Opportunities: Some insurers allow smokers to reduce their monthly premiums if they successfully quit smoking for at least 12 months. Choosing an insurance company that offers this option is advisable as it can significantly benefit your financial situation.
Best Life Insurance Policy for Smokers
If you’re a smoker in Canada, there are various life insurance options to consider, whether you’re in good health or have smoking-related issues. While it’s true that smokers generally face higher premiums and lower death benefits, there are policies tailored to your needs. Here are some types of life insurance for smokers:
Term Life Insurance for Smokers
Term life insurance is a straightforward and cost-effective option. It provides a death benefit to your family if you pass away during the policy’s term. If you outlive the term, there’s no payout. Smokers who plan to quit or have recently quit smoking can benefit from this.
After being smoke-free for 2-5 years, you may qualify for level-term life insurance, which offers more favourable premiums than smoker rates.
Whole Life Insurance for Smokers
Whole life insurance provides lifelong coverage, paying out a death benefit to your beneficiary upon your passing. It’s akin to “fill-it-and-forget-it” insurance, offering stability and a cash value component that grows over time. You can access this cash value through withdrawals or loans for various purposes while you’re alive.
However, it’s important to note that whole life insurance premiums are higher than those for term life insurance, particularly for smokers.
Guaranteed Life Insurance for Smokers
If you have severe health issues related to smoking and worry about securing affordable standard life insurance, guaranteed life insurance is an option to consider. Unlike traditional policies, it doesn’t require a medical exam or health screening.
While you’ll pay higher premiums and receive lower death benefits than standard life insurance, the key advantage is that your coverage is guaranteed. It provides financial protection for your loved ones without any health-related prerequisites.
Guaranteed life insurance is especially suitable for Canadians whose age or health conditions make obtaining other types of coverage challenging. Unlike simplified issue life insurance, there’s no need to complete a health questionnaire.
Best Life Insurance Companies for Smokers
When searching for life insurance as a smoker in Canada, it’s essential to choose a reputable provider that understands your unique needs. Here are some of the top life insurance providers in Canada that offer options for smokers:
- PolicyMe Insurance: PolicyMe is known for its user-friendly online platform that allows you to compare and purchase life insurance policies easily. They offer various insurance options, including term life insurance, which can be an excellent choice for smokers seeking affordable coverage.
- Industrial Alliance Insurance: Industrial Alliance, now part of the iA Financial Group, is a well-established insurance company in Canada. They provide a range of life insurance products, including options suitable for smokers. With their expertise in the insurance industry, they can help you find a policy that meets your needs.
- Sun Life Insurance: Sun Life is one of Canada’s largest and most recognized insurance providers. They offer various insurance solutions, including options tailored for smokers. Sun Life’s extensive network and financial strength make it a reliable choice for life insurance coverage.
- Manulife Insurance: Manulife is another prominent player in the Canadian insurance market. They offer comprehensive life insurance products, including options for smokers. Manulife’s reputation for financial stability and customer service makes it a trusted partner for securing your family’s financial future.
Final Thoughts On Life Insurance For Smokers
Securing the right life insurance for smokers is a crucial step towards protecting your family’s future. Don’t let the challenges of smoking deter you from obtaining the coverage you need; there are solutions tailored to your unique circumstances.
Whether you’re a current smoker or planning to quit, the right insurance policy can provide peace of mind and financial security. So, why wait? Connect with trusted insurance providers and advisors today to find the perfect life insurance plan for smokers. Your family’s well-being is worth the investment. Get started on your path to a secure future now!
