Life insurance provides financial security to your loved ones during their untimely death. One of the key factors determining the cost of life insurance is the policyholder’s health status, including their smoking habits. Smokers are considered high-risk individuals and are charged higher premium rates than non-smokers.
In this article, we will explore the impact of smoking on life insurance rates and how different factors, such as age, gender, and the amount of coverage, can affect the cost of life insurance for smokers. We will also provide insights into the various types of tobacco products and how they impact life insurance rates, including accidental death life insurance rates and guaranteed acceptance insurance rates.
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Cigar Life Insurance Rates Overview
$10,000 of Whole Life Coverage
| Age | Male | Male (Smoker) | Female | Female (Smoker) |
|---|---|---|---|---|
| Age 40 | $24 | $34 | $20 | $26 |
| Age 50 | $30 | $41 | $23 | $33 |
| Age 60 | $42 | $62 | $32 | $47 |
| Age 70 | $68 | $112 | $51 | $77 |
| Age 80 | $132 | $211 | $98 | $151 |
| Age 85 | $207 | $297 | $154 | $211 |
$25,000 of Whole Life Coverage
| Age | Male | Male (Smoker) | Female | Female (Smoker) |
|---|---|---|---|---|
| Age 40 | $55 | $81 | $46 | $59 |
| Age 50 | $69 | $97 | $53 | $78 |
| Age 60 | $100 | $150 | $74 | $111 |
| Age 70 | $164 | $276 | $123 | $187 |
| Age 80 | $325 | $522 | $240 | $372 |
| Age 85 | $513 | $736 | $379 | $521 |
The table shows the life insurance rates for male and female smokers and non-smokers. For this example, we will show you rates for $10,000, $15,000, $20,000, and $25,000 of coverage.
For all coverage amounts, the non-smoker rates are always lower than the smoker rates, and the difference increases with age. The price difference between male and female smokers and non-smokers is generally similar across age groups.
For example, for a $10,000 coverage amount, the price difference between male non-smokers and smoker rates is $10 for 40-year-olds and $44 for 70-year-olds. For females, the price difference is $6 for 40-year-olds and $26 for 70-year-olds.
For a $20,000 coverage amount, the price difference between male non-smokers and smoker rates is $20 for 40-year-olds and $89 for 70-year-olds. For females, the price difference is $11 for 40-year-olds and $51 for 70-year-olds.
Smoking cigars significantly impacts life insurance rates, with the cost of coverage being much higher for smokers than non-smokers. The cost increase can be substantial and vary greatly depending on the insurance company and coverage amount.
The amount of tobacco or nicotine use and the frequency will also impact the premium costs. Individuals must be honest about their smoking habits when applying for life insurance to ensure they receive an accurate quote.
American Amicable Rates – $10,000 of Whole Life Coverage
| Age | Male Non-Smoker Rates (Cigars Accepted) | Female Non-Smoker Rates (Cigars Accepted) |
|---|---|---|
| 50 | $30 | $25 |
| 60 | $45 | $36 |
| 70 | $75 | $57 |
| 80 | $147 | $108 |
| 85 | $209 | $157 |
American Amicable gives you the best rates if you are a cigar smoker. As you can see, the rates are significantly lower than typical smoker rates.
For the $10,000 coverage, the cost of the policy increases as the policyholder ages. For example, a 50-year-old male non-smoker will pay $30 monthly for coverage, while an 85-year-old will pay $209 for the same coverage. Female non-smokers generally pay lower rates than male non-smokers of all ages.
American Amicable Rates – $25,000 of Whole Life Coverage
| Age | Male Non-Smoker Rates (Cigars Accepted) | Female Non-Smoker Rates (Cigars Accepted) |
|---|---|---|
| 50 | $71 | $59 |
| 60 | $108 | $87 |
| 70 | $183 | $139 |
| 80 | $365 | $265 |
| 85 | $520 | $389 |
Cigar Smoking Underwriting Criteria for Insurance Companies
The table below shows the decision criteria of different life insurance companies regarding whether or not smoking cigars will affect the non-smoking rates. Each company’s application question is slightly different, but they all ask about nicotine or tobacco products.
| Company | Cigars = Smoker Rates? | App Question(s) |
|---|---|---|
| Transamerica | No | Within the last 12 months have you used nicotine replacement, smoking or tobacco products in any form including, but not limited to the following: nicotine gum, patch or pills; cigarettes; cigars; pipe; chew; snuff; e-cigarettes; vape; hookah; or have you used marijuana more than 12 times in the last 12 months? |
| Liberty Bankers | No | Have you used tobacco, nicotine, or e-cigarettes in any form in the past 12 months? |
| Sons of Norway | No | Is the proposed insured currently using or has used in the past 12 months any form of tobacco or nicotine substitute? |
| Americo Eagle | Yes, if you quit within the first three years of the policy | Have You used any nicotine products (including, but not limited to, cigarettes, cigars, pipes, chewing tobacco, snuff, alternative nicotine delivery devices such as nicotine chewing gum or lozenges, nicotine patches or e-cigarettes or any device used for the vaporization of liquid nicotine) within the last 12 months? |
| American Amicable | Yes | During the past 12 months have you used tobacco in any form (excluding occasional pipe and cigar use)? |
| AIG | No | In the past 12 months, has the Proposed Insured used tobacco or nicotine-delivery products in any form? |
The results show that Transamerica, Liberty Bankers, Sons of Norway, and AIG do not consider cigars for non-smoking rates. This means smokers who smoke cigars will not receive these companies’ non-smoking rates.
Americo and American Amicable will offer non-smoker rates for cigars. Americo offers non-smoking rates to individuals who quit smoking within the first three years of the policy, while American Amicable will qualify you for their non-smoker rates.
The Risks of Smoking Cigars
Smoking cigars carry several significant health risks. Studies have shown that regular cigar smoking increases the risk of developing cardiovascular diseases, such as heart attack and stroke.
Additionally, cigar smoke contains several cancer-causing chemicals, including tobacco-specific nitrosamines and polycyclic aromatic hydrocarbons, that increase the risk of developing various types of cancer, including lung, oral, and esophageal cancer.
It can also lead to respiratory problems like chronic bronchitis and emphysema. Inhaling the smoke can irritate the airways, leading to coughing, wheezing, and shortness of breath.
Smoking cigars can have a significant impact on lifespan. Studies have shown that cigar smokers risk early death more than non-smokers. This is due to the numerous health risks associated with cigar smoking and the fact that cigar smoke contains many of the same toxic and carcinogenic chemicals as cigarette smoke.
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How Life Insurance Companies Determine Rates
Life insurance companies use a variety of factors to determine life insurance rates for individuals.
One of the most important factors is medical underwriting, which involves reviewing the applicant’s medical history, current health status, and other relevant health information.
Lifestyle factors are also taken into consideration when determining life insurance rates. This includes smoking, drinking, drug use, and other habits impacting an individual’s health.
Age and gender play a role in determining life insurance rates. Younger individuals are typically seen as at lower risk and, therefore, have lower life insurance rates. Women also have lower rates than men due to their longer life expectancy.
The Impact of Smoking Cigars on Life Insurance Rates
Smoking cigars significantly impacts life insurance rates, increasing the health risks associated with the behavior. Due to the increased health risks, life insurance companies charge higher rates for individuals who smoke than non-smokers.
individuals who smoke cigars should be aware of how this behavior can impact their life insurance rates. This learning can help them make informed decisions about their life insurance coverage and help them prepare for the additional costs associated with being a smoker.
Does E-cigarettes, Marijuana, and Chewing Tobacco Impact Rates?
E-cigarettes, marijuana, and chewing tobacco are all alternative forms of nicotine delivery and can also impact life insurance rates.
E-cigarettes, also known as vaping, have gained popularity recently as a potentially less harmful alternative to smoking. However, life insurance companies view e-cigarettes as a form of nicotine delivery and still consider them a risk factor. As a result, individuals who use e-cigarettes face higher life insurance rates than non-users.
Marijuana use is also a concern for life insurance companies, as it impacts an individual’s health. Despite the legalization of marijuana in some states, life insurance companies still consider it a risk factor and charge higher premiums.
Chewing tobacco is another form of nicotine that impact life insurance rates. As with other forms of nicotine delivery, individuals who use chewing tobacco face higher life insurance rates than non-users.
E-cigarettes, marijuana, and chewing tobacco impact life insurance rates. Life insurance companies view these forms of nicotine as a risk factor and charge higher premiums for individuals who use them.
How Insurance Companies Verify Smoking Habits
When you get life insurance, the MIB (formerly known as the Medical Information Bureau) is used by insurance companies to see if you are a good risk. The MIB checks records to find out if there is any false information on insurance applications, similar to a credit report. This helps stop fraud and makes it less risky for insurance companies.
The MIB report has information about your life insurance applications from 5 to 7 years ago. This includes when you applied if you had any illnesses and got treatment for them. It also says what medical conditions you have. Underwriters use this information with other things, like a medical exam or statements from your doctor, to make sure the current application is complete.
Final Thoughts
Smoking cigars significantly impact life insurance rates, leading to higher premium costs. The increased health risks associated with smoking cigars are the main reason for the impact on life insurance rates.
E-cigarettes, marijuana, and chewing tobacco are alternative forms of nicotine that also impact life insurance rates. Life insurance companies view these forms of nicotine delivery as a risk factor and may charge higher premiums for individuals who use them.
Ultimately, the best way to ensure lower life insurance rates is to maintain a healthy lifestyle and avoid behaviors that increase health risks. This includes quitting smoking cigars, avoiding other nicotine forms, maintaining a healthy diet, and engaging in regular physical activity.
