February 22nd, 2012 | Author: Mitch Reynolds

Smoking Cigarettes Costs More for Insurance Premiums

The elevated risk of being a smoker for life insurance

If you are among the 20% or so of Canadians who regularly smokes cigarettes, then you will be faced with a higher cost for your life insurance. In fact the insurance companies treat smoking very black and white. If you have had even one cigarette in the last 12 months they will consider you a smoker and increase your premiums. I guess there is no reasonable graded scale for smoker, quasi-smoker and non-smoker. Either you smoke cigarettes or you don’t. And if you do, then you present an elevated chance of health risks and a shortened life expectancy.

Not every smoker suffers from common illness related to smoking. We have all heard the stories of so-and-so’s great uncle who smoked 2 packs a day and lived to 95 without any health problems. Even if people like that do exist, there are still hundred who suffer cancer, heart disease, emphysema, and many other smoking related illnesses. Being a smoker puts you amoung that group, and it is the statistical average risk of the group the insurance company is looking at – not at you individually (unless you already have a serious smoking related illness).

BIG TIP: If you ever quit smoking, and are off all forms of tobacco and nicotine products for a period of 12 months (include nicotine gum and the patch) then you can have your life insurance premiums reduced to non-smoker rates. Once you have qualified for non-smoker rates the life insurance company can never again raise your rates, even if you take up smoking again in 3 or 4 years. You can save more money than just the cost of cigarettes when you quit – your life insurance premiums will probably be cut in half too.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about smokers having to pay more for life insurance premiums. would be very much appreciated.