A guide to life insurance for smokers

As a smoker, it can be more expensive to take out life insurance policies as it is generally regarded as “high risk”.

The higher premiums can put off many smokers from making sure their loved ones, dependents or themselves are protected when they need it the most.

The higher premiums may not mean you can’t take out life insurance, and our specialists at Compare Club can help you find cover that fits your needs.

Are smokers eligible for life insurance?

Absolutely.

Almost all leading life insurance providers offer policies for smokers, but it’ll come at a higher cost.

If you’re a smoker that quits for more than 12 months, this can significantly reduce the price you pay on your life insurance.

The key to trying to find suitable cover is to be honest about your habits and inform the insurer if and when you decide to quit.

What type of life insurance is available for smokers?

Smokers can apply for any type of cover that falls under the life insurance umbrella.

These can protect your loved ones or dependents against financial loss from not being able to work due to sickness and/or injury, critical illnesses, total and permanent disability, terminal illness and death.

Types of Life Insurance

How much do smokers pay for life insurance?

On average, smokers pay 62.5% more in premiums

For a smoker - $965

For a non-smoker - $362

Based on $500,000 worth of cover for a 45 year old male in NSW

Numbers accurate as of 16th November, 2021

Should I tell my life insurance provider that I smoke?

Yes.

If your provider asks you directly whether you smoke, you have a duty of disclosure and will be required to answer honestly.

If you’re only an occasional, social smoker, use vapes or any nicotine products you need to tell the insurer that too.

When you enter into a life insurance contract, your provider needs to determine the risk that they will take on based on your health and lifestyle habits.

Smoking is a big factor in this assessment.

What happens if I lie about smoking to my insurer?

If you lie to your insurer, this can negatively impact any claim you make down the track.

Generally, insurers use a range of tools such as medical tests, autopsy reports, Medicare records and the history of claims under your Pharmaceutical Benefits Scheme to verify any health conditions.

This information may be used to figure out if you were a smoker during the life of your policy.

Many insurers also have teams of researchers and analysts, often with medical training, to catch customers out if they’re lying.

And if you get caught out, the claim amount may be reduced or cancelled altogether, impacting your loved ones during a significantly emotional time for them.

Can I adjust the premium on my existing policy if I quit smoking?

Yes, you can, depending on some additional disclosures.

By not having a cigarette, using any nicotine product or vapes for 12 months or more, you are generally able to apply for non-smoker rates which means you may be assessed for lower premiums from your life insurer.

When am I considered an ex-smoker or non-smoker?

You’re generally considered an ex-smoker or a non-smoker when you haven’t smoked or used nicotine in the last 12 months.

Anything less than that usually isn’t valid to a life insurer.

Unfortunately for smokers, most providers typically don’t differentiate between once in a while smokers and the pack-a-day variety.

That said, each insurer has different criteria for assessing your smoking status.

Our Life Insurance Comparison specialists may be able to help you get some clarity on your options.

Do insurers count e-cigarettes and other nicotine products as smoking?

Most insurers classify smoking as the use of any and all nicotine products, including cigarettes, cigars, tobacco chewing and nicotine patches.

These vary between providers.

Many insurers continue to impose smoker premiums on e-cigarette users, whether there is nicotine in the product or not.

How can I find affordable life insurance for smokers?

As a smoker, you’re likely to pay a higher premium than a non-smoker.

Keep that in mind when talking to our Compare Club specialists who compare across ten insurers and can help you find the most affordable coverage for you and your loved ones.

If you’re wondering how to get affordable life insurance rates, don’t be afraid to shop around.

Our specialists can help compare your options and help you with the application process for you.

Can I get health insurance as a smoker?

Smoking increases the cost of life insurance premiums but typically smoking will not increase the cost of your health cover.

You can find out more about health insurance for smokers in our detailed article here.

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

Meet our life insurance expert, Matthew Lang

Matthew's top life insurance tips

• 1

  Identify what you want out of life insurance before you buy. Knowing the purpose of your life cover will help you choose a policy that meets your needs.

• 2

  It's easy to assume that the sole purpose of life cover is to leave money behind for your family, but there's more to it than that.

• 3

  Life insurers like those on our panel pay an average of 97% of claims in full.

• 4

  There are different types of life insurance, including term life insurance, income protection, trauma cover and total and permanent disability cover.