The Impact of Smoking on Life Insurance Premiums and Coverage Options

If you’ve ever shopped for life insurance as a smoker, you’ve probably noticed one thing right away: it costs more...a LOT more. Smoking is one of the biggest factors life insurance companies use when determining risk and it can significantly affect both your premium and the type of coverage you’re offered.

The good news? Smokers still have options and in some cases, the impact may be less severe than you expect. Let’s break it down in plain English.

Why Smokers Pay Higher Life Insurance Premiums

Life insurance pricing is all about risk. Because smoking is strongly linked to serious health conditions—such as heart disease, cancer, and respiratory illnesses, insurance companies view smokers as more likely to file a claim earlier than non-smokers.

As a result, smokers are typically placed in higher risk categories, which leads directly to higher premiums.

Here’s a real-world example:

• A healthy 40-year-old non-smoking male might pay around $500 per year for a $500,000, 20-year term life insurance policy.

• The same 40-year-old male who smokes could pay $1,400–$1,600 per year for identical coverage.

That difference adds up fast over the life of a policy.

How Smoking Can Limit Your Coverage Options

Higher premiums aren’t the only challenge smokers face. Depending on the carrier, smoking can also affect what types of policies are available.

Some insurance companies:

• Decline coverage for smokers altogether

• Limit the maximum coverage amount

• Restrict smokers to term life instead of permanent policies

• Require a medical exam, including nicotine testing

During underwriting, carriers often test urine or saliva for nicotine and cotinine (a nicotine byproduct). If detected, you’ll almost always be classified as a smoker even if you only smoke occasionally. This happened to one of our client in Tennessee.

What About Vaping or Occasional Cigars?

This is where things get interesting and where working with the right agent really matters.

Vaping

Some insurance companies do not automatically treat vaping the same as cigarette smoking. Some carriers will consider applicants who only vape as non-smokers, especially if there’s no history of traditional cigarette use.

That said, underwriting rules vary:

• Some carriers classify vaping as smoking

• Others offer non-smoker rates for vape-only users

• A few fall somewhere in between

The key takeaway: vaping doesn’t automatically mean smoker rates, but carrier selection is critical.

Cigars or Pipes (Occasional Use)

If you only smoke cigars a few times per year, such as on special occasions or while, some carriers may still offer non-smoker or preferred rates, as long as:

• Use is truly infrequent (often defined as 1–12 cigars per year)

• There’s no cigarette or daily tobacco use

• Nicotine testing aligns with stated usage

Honesty is crucial here. Occasional cigar use can still qualify for favorable rates but only if disclosed accurately.

Options for Smokers Who Want Life Insurance

Even if you currently smoke, you’re not out of options.

1. Quit Smoking

Quitting is the most effective way to lower premiums. Some insurance companies consider you a non-smoker after 12 months without tobacco or nicotine use.

Beyond insurance savings, quitting can dramatically improve long term health and overall insurability.

2. Shop the Market

Every insurance company has different underwriting guidelines. One carrier may be extremely strict with smokers, while another may be far more flexible.

Comparing multiple carriers is often the difference between an overpriced policy and one that’s reasonably affordable.

3. Consider Guaranteed Issue Life Insurance

Guaranteed issue policies require no medical exam and no health questions. Approval is virtually guaranteed.

The trade-offs:

• Higher premiums

• Lower coverage amounts

• Often a waiting period before full benefits apply

These policies can make sense for smokers with serious health issues who can’t qualify for traditional coverage.

Final Thoughts

Smoking does have a real impact on life insurance premiums and coverage options, but it doesn’t eliminate your ability to protect your family.

By understanding how carriers view smoking, vaping, and occasional tobacco use and by working with an experienced life insurance agent you can often find coverage that fits both your needs and your budget.

If you’re a smoker or vaper and aren’t sure where you fall, getting personalized guidance can make all the difference.