I have previously mentioned about how being a smoker can affect your life insurance premiums and cost you much more in the long run. In fact, premiums for a 30 year old smoker can cost up to a third more than a non-smoker, and up to twice as much for a smoker in their 50’s.
The reasoning behind this is obvious, smoking is bad for your health and smokers are more likely to claim on a life insurance policy by having an early death or through a critical illness. So they pay more.
So how do insurers know I smoke and what do they considering smoking or being a smoker? If you have used tobacco in the past 12 months, you are a smoker. Regardless of if you smoke one or two cigarettes a week when you go out, or if you smoke 20 a day; you are considered a smoker in the eyes of the insurance industry.
Smokers are treated equally, there is no change, breakdown or tiering as to how much or how many cigarettes you smoke.
So how will the insurance company find out fi I am a smoker and I state I am a non-smoker?
They will find out, eventually, and the last thing anyone needs is to die, have a claim placed, and the claim denied due to fraud; you smoked and stated you did not smoke.
But the insurance companies can use various means to confirm you are a non-smoker. They may look at medical records or history, and if later on a critical illness rises, especially one related to smoking, it is a big red flag.
If you quit smoking while insured, it is possible for an insurance company to review the policy and premiums and make adjustments. So there is some incentive to quit.
So in looking at life insurance and its costs, be aware that smoking can cost you more in costs and premiums.