Here are some things that are good to know if you are in a position where you need life insurance and yet you use tobacco products. I want to discuss which companies are favorable and why. I promise you this, if you smoke or chew tobacco there is information here that will save you money.
If anyone who uses tobacco products has ever shopped around for life insurance they are now aware that the two don’t exactly go hand in hand. Most of the time companies will double the monthly premium of a simple term insurance plan for someone who uses tobacco products vs. someone who does not.
For Example: a 20 year Term Insurance policy with a face amount of $500K for a guy like me (31 year old, pale, skinny white boy) would run roughly $25 dollars per month. I gave myself a Preferred Plus health class. Now! If I was a smoker and ran the numbers for that very same scenario, the least expensive program out in the market is $69 per month, the median is roughly $80 per month. So you now see that smoking is costly, not even considering that a pack a day smoker spends $120+ per month on their habit.
Now you may say to me, “Brian I chew tobacco, but I don’t smoke.” Unfortunately for 99% of insurance companies out there, you are labeled as a “Smoker” regardless of your habit. If tobacco is in your blood stream when the examiner takes your draw, you will be seen as a smoker. That goes for a once a week cigar, and weekend chew at the baseball game, or two packs per day smelling like an ash tray, they are all deemed “tobacco”.
Here is some light though. I have issued policies for many smokers and non smoking tobacco users over the years. There are some companies who offer underwriting guidelines that work in your favor. Did you know, is that there is a company that gives non smoking rates to people who chew tobacco. If you apply to this company and list that you chew tobacco they will happily issue you a Standard Plus Non-Tobacco health class, assuming your in good health of course. Also…….”No I will not right down chewing tobacco if I know that you smoke.” This also goes for Cigar smokers and people on the nicotine patch, you too can receive a non-tobacco rate class, call me.
Look at the cost savings between the two health classes. In the example above, we just dropped your premium from $80 to $48 per month with the Standard-Non-Tobacco health class. Oh and if you want to apply to this company you need to contact me directly, I don’t just hand pearls out you know!
Now, for you cigarette smokers out there, there is still some light at the end of the tunnel. There are two companies in the industry that are competing to corner the market in offering rates much lower than every other insurance company out there to smokers. Their prices in nearly every scenario I have ran, have been side by side dead even in cost. Both companies are reputable and both have A ratings from A.M Best. Who are they? Call me.
If you smoke and need life insurance I feel it is certainly in your best interests to apply to one, if not both of these companies. If you do the business through me, I can have applications sent to both carriers and have you take only one exam. That way you will have both offers on the table when the results come in and you don’t have to get pricked in the arm twice. These companies offer smokers a rate that is on average 15% less than any other carrier out there. Note: they will still give you a tobacco rate, its just cheaper than other companies for the same amount of insurance. In closing, whether you are a smoker, chewer, or have recently quit smoking, I have the experience to recommend solid advice and companies who are competitive for your situation. This advice will save you money, period.
Thanks for reading.
