Smokers pay more for insurance
If you’re looking to save money on your life insurance, not smoking is a great way to start.
Smokers squeezed by soaring cigarette costs and workplace smoking bans are increasingly being hit with another cost increase — this time for health insurance.
A growing number of private and public employers are requiring employees who use tobacco to pay higher premiums, hoping that will motivate more of them to stop smoking and lower health-care costs for the companies and their workers.
When you light up the cigarette in your mouth, you put yourself in position to spend more on life insurance than you should have.
Should you blame an insurance company if they wanted to charge you more for life insurance if you are a smoker?
So, why is life insurance more for a smoker?
Science has shown that people who smoke generally pass away at a younger age.
While evaluating how much of a risk you are to insure, the life insurance company takes into account the fact that you smoke and the negative impact that smoking has on your life expectancy. Because you are a higher risk to insure (i.e. more likely to die sooner than someone who doesn’t smoke) the life insurance company charges you more for your life insurance policy.
Unfortunate as it is, people who smoke will generally always pay more for their life insurance. But that doesn’t mean you have to pay exorbitant prices if you are a smoker.
Life insurance companies for right reason want their clients living long, flourishing lives. This as you can understand benefits both parties.
To simplify, for the policyholder, the longer that you remain insured, the longer you can be shielded by your policy. For the life insurance company, the longer the consumer pays for insurance, the more profit the insurer accumulates. That should make it a lot perceptible as to why health plays a role in term life insurance rates.
So why is smoking separated aside by many life insurance firms when it comes to determining rates?
First, there are a number of illnesses, many leading toward to death, that are connected to smoking.
According to the US Centers of Disease Control estimates, smokers rack up $167 billion in healthcare expenses and losses in productivity annually.
The life anticipation of smokers is less than those who do not use tobacco. When life insurers take note that an applicant cares to smoke, it automatically sends up red flags. The individual is thought to have a shorter lifetime, and is expected to maybe have health matters down the road. That’s why, term life insurance rates for that particular person, and are probable to be greater.
So just how do insurance companies find out if you smoke without their knowledge?
First, life insurers use a questionnaire that is supplied to each customer looking for term life insurance rates. If you smoke and think lying on the questionnaire is the way to go, think again.
A number of the questions include smoking. While you may consider lying, the next step, a medical checkup exam, is likely to trip you up. The insurance company will be looking for certain matters during this exam.
Due to the fact there are chemicals left behind in the body by smoking (such as nicotine), the insurer can spot if you are a tobacco user. The bottom line….all of your life insurance policies can be annulled if you’ve been found out to be a liar.
In the case you are engaged into a life insurance policy, you are allowed to update your medical examination at any time.
Whether it’s the rising prices of cigarettes and health premiums or a heightened public focus on the health risks, more smokers are giving up the habit. The bad news: quitting smoking is hard. The good news: it can be done. Today more adults have succeeded in quitting than there are current smokers.