Being a smoker comes with its costs—and not just for your health. Your smoking status can significantly impact your life insurance premiums. But don't stress; securing life insurance for smokers is possible. This guide explores how smoking affects premiums, compares smoker versus non-smoker insurance rates, and offers actionable strategies to find the cheapest life insurance for smokers. Let's dive in.
How smoking impacts life insurance premiums
Insurers generally charge smokers higher premiums due to increased health risks. Conditions like lung cancer, heart disease, and pregnancy complications raise the likelihood of claims, leading insurers to adjust pricing accordingly.
What about vaping or alternative tobacco products? In New Zealand, most insurers classify vapers and users of chewing tobacco as smokers since these products still expose the body to nicotine and other substances. This classification varies by insurer, so it’s important to check specific underwriting policies. Always disclose your habits honestly to avoid complications with future claims.
Real-life comparisons: smoker versus non-smoker insurance rates
To illustrate how smoking affects life insurance premiums, here’s a comparison of smoker versus non-smoker insurance rates based on average monthly costs for a $500,000 cover for a 30-year-old:
Gender | Non-Smoker (Monthly Average) | Smoker (Monthly Average) | Difference % |
|---|---|---|---|
Female | $24.79 | $42.09 | +69% |
Male | $34.96 | $67.53 | +93% |
Source: Quashed
This comparison highlights the significant impact of smoking on premiums, particularly for men.
For example, a 30-year-old male smoker may save over $390 per year by quitting. Many insurers reclassify former smokers after at least 12 months of being nicotine-free, which can significantly lower premiums. However, insurer policies vary, and some may require medical assessments before reclassification.
How insurers define smoking
For insurance purposes, smoking isn’t limited to cigarettes. Insurers typically classify you as a smoker if you:
Use cigarettes, cigars, or pipes.
Use vaping devices or e-cigarettes.
Chew tobacco or consume nicotine products.
To qualify as a non-smoker, most insurers require you to be nicotine-free for at least 12 months, but some may have longer requirements. Be honest when applying, as insurers may conduct medical underwriting, including nicotine testing. Providing false information could lead to:
Policy cancellation if misrepresentation is discovered.
Claim denial if the smoking status was misrepresented.
Beyond classification, insurers may also impose exclusions for smoking-related conditions. Let’s explore what this means for your policy.
Exclusions related to smoking
Some insurers may impose exclusions for smoking-related illnesses or causes of death. For instance, a policy might not cover claims related to lung cancer if smoking was undisclosed at the time of application. These exclusions vary by insurer, so always review policy terms carefully or consult a licensed financial adviser.
Tips for reducing life insurance costs as a smoker
Quit smoking
After 12 months of being smoke-free, you may qualify for lower rates. Some insurers may also require additional medical assessments.
Choose the right cover amount
If premiums feel high, start with a policy that fits your budget and increase coverage later as your circumstances change.
Compare policies
Not all insurers charge the same rates for smokers. Use Quashed to compare rates across providers in a simple way.
Lead a healthier lifestyle
Other factors like regular exercise, a balanced diet, and routine medical check-ups can also lower your premiums by demonstrating a commitment to good health.
Access resources to help you quit smoking:
Quitline NZ: Offers free 24/7 support to help you quit smoking.
Smokefree NZ: Provides face-to-face assistance across New Zealand.
Government Support: Use smoking cessation programs for additional guidance.
How Quashed simplifies life Insurance
Whether you’re a smoker or a non-smoker, Quashed is here to change the way you shop for life insurance.
With our real-time comparison platform, you’ll see exactly what insurers are offering—no gimmicks, no outdated info.
Price comparisons: Unlike static comparison sites, Quashed connects directly with insurers to deliver actual, up-to-the-minute quotes.
Clear policy information: Compare policy options side-by-side with transparent pricing and coverage details.
Perks: Look out for first-time customer discounts, wellness benefits, and loyalty rewards.
Thinking about life insurance?
Smoking increases premiums, but finding the right life insurance is possible with careful research and planning.
Join over 45,000 Kiwis using Quashed to compare insurance options today.
Further reading
Check out these great reads:
What is Life Insurance?: Learn the basics of life insurance and whether it’s right for you.
Life Insurance by Life Stage: See how your insurance needs change throughout life.
Choosing Life Insurance: A guide to selecting a policy for your needs.
Life Insurance Costs: Understand what drives premiums and how to manage costs.
Common Life Insurance Mistakes: Avoid errors that could cost you or leave you underinsured.
Save on Life Insurance: Tips to reduce premiums without losing cover.
Life Insurance Providers Guide: Tips for evaluating providers.
KiwiSaver & Insurance: A thought leadership piece on addressing our underinsurance problem via KiwiSaver.
FAQs
Can you get life insurance if you have smoked?
Yes, you can still get life insurance if you’ve smoked. However, insurers typically charge smokers higher premiums due to the associated health risks. Quitting smoking for 12 months or more could allow you to apply for non-smoker rates, potentially lowering your premiums.
What is considered a smoker for life insurance?
A smoker is typically defined as anyone who has used tobacco products—including cigarettes, cigars, vaping, or nicotine patches—in the past 12 months. Insurers will ask about your smoking history when you apply, so it’s important to be honest to avoid issues with future claims.
How long after stopping smoking are you classed as a non-smoker?
Most insurers consider you a non-smoker if you’ve been smoke-free for at least 12 months. Some may require longer periods or additional medical assessments, depending on their policies. Starting to smoke again might affect your ability to claim in some cases.
Do you have to update life insurance if you start smoking?
While you’re not typically required to inform your insurer if you start smoking after your policy begins, it’s important to review the terms and conditions of your life insurance policy. Starting smoking might affect your ability to claim in some cases, so always double-check the fine print.
Do smokers need life insurance if they don’t have dependents?
If you’re a smoker and don’t have dependents, life insurance may not seem essential. However, it can still be useful if you have a mortgage or want to leave a financial gift for family members, such as covering funeral expenses or paying off debts. It’s worth evaluating your long-term goals and considering other types of insurance, like income protection or trauma cover, which might better suit your situation.
Do I need life insurance?
Life insurance provides financial protection for your loved ones if you pass away. It can cover debts, funeral expenses, or provide ongoing income for dependents. If you're unsure whether you need it, check out our guide.
How much does life insurance cost in New Zealand?
Life insurance premiums vary depending on factors like age, health, lifestyle, and the amount of cover. Smokers often face higher premiums due to the associated risks. Find out more in our blog.
What are common mistakes Kiwis make when buying life insurance?
From underinsuring to overlooking policy exclusions, Kiwis often make avoidable mistakes when purchasing life insurance. Learn how to avoid these pitfalls with our guide.
How does life insurance change through different life stages?
Your need for life insurance evolves as you move through life—whether you’re starting a family, buying a home, or approaching retirement. Read about how to align your cover with your goals in our blog on life stages and life insurance.
How do I choose the right life insurance policy?
Choosing the right life insurance policy can feel overwhelming. Factors like cover amount, policy type, and additional benefits play a big role. Use our expert tips in the Guide to Choosing Life Insurance in NZ to get started.
