As insurance companies try to evaluate the rate of insurance policy, they take into consideration such factors as health, age, lifestyle, medical history and whether you are a smoker or not. No doubt, smoking is an important consideration as there are risks of cancer from tobacco usage, while at the same time increasing the mortality rate. Smoking also puts you in a risk category on the insurance rate chart.
Classifications in life insurance rate
The premium for your insurance is determined by the rate class that you belong. The rate class is determined after considering your medical history and medical conditions, your lifestyle, that include whether you are a smoker or not. The different classes present are “preferred (non-tobacco)”, “preferred (tobacco)”, “standard (non-tobacco)” and “standard (tobacco)”. There are of course differences among the insurance companies, but all would provide you with a better rate if you are healthy non-smoker.
The premiums for life insurance
An article brought out on the MSN website showed quotes for a 20 year old term life insurance (for a policy of $500,000) for a healthy male of 44 years. The quoted range for non-smokers was $695 to $2,250 in premiums per year; in case of someone who is smoking one pack a day, it was as high as $4,495 per year. This greatly illustrates the way smoking can impact the premiums.
It is better to quit smoking
Good news lies with every smoker. Most insurance companies will rewrite your policy and make changes to your premiums if you kick off your smoking habit for a period of three years. However, be aware that you will be required to go for testing of nicotine and have a physician give proof of your quitting the smoking habit.