Reader’s Question:

What does a smoker term life insurance company get by offering such an insurance?

Erin

Houston Texas

Even with the recessions, insurance companies are still in business because everyone wants to leave something behind to people close to them. The same is true for a smoker term life insurance  company. Even now, the insurance market is still a market that is full of competition. The reason why these types of companies exist is that they know the market for life insurance for smokers is a big one. Figures show that in the US for example, around 25% of the population smokes despite the fact that lung cancer is the number one cancer when it comes to deaths.

So what do these companies get? Customers for one. Customers go to a smoker term life insurance company not because of the rates per se, but rather only on the possibility that they may get to pay less premiums. The company can do this since they define some terms differently from the traditional insurance. Unlike other companies, an insurer that offers policies for smokers differentiates what smoking is or is not. They not only have a different definition of what smoking is, they also consider the frequency that you smoke as one factor.

For example you’re the type that only smokes cigarettes on occasion. You will be frustrated once you learn that the average insurance company will still consider you as a smoker. Already quit smoking? If five years hasn’t passed, then don’t even consider buying a policy.

These are the people that this type of company wants to corner and there are a lot of them. It’s a lot like insurance for senior citizens. Companies before didn’t want to cover older people because they felt that they had a high risk of dying which meant paying out the benefits even before the person has finished the term. A simple search would reveal that there are also now a lot of companies that offer insurance to the elderly.

To answer your question, what does a smoker term life insurance company get by doing this? Simple really. Money.

Reader’s Question:

The life insurance companies want to charge me my first born child because I’m a smoker! I’m sick and tired of talking to life insurance companies. Got any shortcuts?
Alex,
Houston

Alex,

I feel your pain! I think you have been barking up the wrong tree and searching for life insurance with the biggies. They have an investment to protect and people who smoke have more health problems and die younger making the possibility of leaving more dependents behind higher. What you need is a company that specializes in covering smokers and don’t over charge them. Fill out the form at the top of the page and you can get quotes from these companies for free. It takes a few minutes to fill out and the quotes come to you. May your search be brief and fruitful!

John,
Well it would seem that chewing would not damage your lungs so it shouldn’t be considered the same right? Wrong. Life insurance companies look at tobacco usage the same way they look at smoking and would raise your rates just the same. That is why I would recommend a company that specializes in covering people just like you. Save your self some time and effort look at companies that specialize in covering smokers.

Anonymous,
There are actually a few niche insurance companies that specialize in covering smokers. They base their rates on the type of tobacco consumed and how often you consume them. You may be able to get the same rate as a non-smoker. Be sure to get quotes from more than one provider. If you fill out the form on this page it can help you with that. I wish you well on your search and hope you get a great rate.