Why is Life Insurance so much more expensive for smokers?

Life insurance is more expensive for smokers than for non-smokers for one simple reason - non-smokers generally live longer, and are healthier.

As a result, smokers pay more for life insurance - on average 65% more than a non-smoker.

This is the life insurance industry’s definition of a smoker:

“A person who used, smoked or otherwise consumed any kind of tobacco products during the previous 12 months.”

As you can see, you don't need to be a regular smoker to be considered a smoker!

If you have recently given up, then it's worth looking for a company which has a longer qualifying period, for example, some insurance companies have lengthened the qualifying period from 12 months to 5 years. So if you gave up smoking 2 years ago, look for an insurance company which uses the 1-year definition.

All insurance companies ask questions on their Application forms about how often you smoke and what type of tobacco products you use. This plays a significant role in their risk assessment.

Whether smoking really justifies the higher premiums is a matter of contention, especially for younger people. Pro-Smoking Pressure Groups state that smokers below the age of 40 have the same risk of death as non-smokers of the same age, but a 30 year old male could have to pay up to 56% more than a non-smoker for a 25-year life insurance policy.

If you are a smoker, it's in your interests to shop around for the cheapest life insurance premiums because you will be paying a lot more than your non-smoking counterparts.